MarQuity - Summers Compendium 2017

Marketing Compendium for
Summers Preparation 2017
Team MarQuity wishes all the best to

the batch of 2017-19 for the Summer
Placements
May the Five Forces be With You!

SECSSMARKETING COMPENDIUM
CONTENTS
WHAT IS MARKETING? .......................................................................................................................................4
SALES VS MARKETING ........................................................................................................................................4
CONSUMER BEHAVIOR ......................................................................................................................................7
SEGMENTATION, TARGETING AND POSITIONING .............................................................................................7
MARKETING MIX ..............................................................................................................................................11
PUSH VS PULL MARKET ....................................................................................................................................19
PRODUCT MIX – LENGTH, BREDTH ..................................................................................................................20
PRODUCT LIFE CYCLE .......................................................................................................................................22
BRAND EXTENSION ..........................................................................................................................................23
ATTACKS ...........................................................................................................................................................25
BCG MATRIX .....................................................................................................................................................28
ANSOFF MATRIX...............................................................................................................................................31
PORTER’S FIVE FORCES ....................................................................................................................................35
BARGAINING POWER OF SUPPLIERS............................................................................................................35
THREAT OF NEW ENTRANTS ........................................................................................................................36
BARGAINING POWER OF BUYERS ................................................................................................................37
THREAT OF SUBSTITUTES .............................................................................................................................38
RIVALRY AMONG EXISTING COMPETITORS .................................................................................................39
ABOVE THE LINE MARKETING ..........................................................................................................................43
BELOW THE LINE MARKETING .........................................................................................................................43
ATL (STRATEGIES EMPLOYED) ..........................................................................................................................44
THROUGH THE LINE MARKETING (TTL) ...........................................................................................................45
BRAND POSITIONING – MONITORING COMPETITION ....................................................................................45
BRAND REINFORCEMENT.............................................................................................................................48
COMPETITIVE ADVANTAGE..............................................................................................................................49
DIGITAL MARKETING ........................................................................................................................................50
EXPERIENTIAL MARKETING ..............................................................................................................................50
SOCIAL MEDIA MARKETING .............................................................................................................................51
GUERRILLA MARKETING...................................................................................................................................52
IMAGE AND EMOTIONAL MARKETING ............................................................................................................52
FADS, TRENDS AND MEGATRENDS ..................................................................................................................54
HOW TO MAKE A MARKETING PLAN? .............................................................................................................55
©Copyright Team MarQuity 2

PURCHASE FUNNEL ..........................................................................................................................................56

MODELS OF CONSUMER RESPONSES ..............................................................................................................57
AIDA MODEL ................................................................................................................................................57
DIFFUSION OF INNOVATION CURVE ................................................................................................................59
CUSTOMER LIFETIME VALUE ...........................................................................................................................60
AD ANALYSIS ....................................................................................................................................................62
THE CLASSICS ...............................................................................................................................................62
RECENT ADS .................................................................................................................................................66
QUESTIONS FROM THE PAST ...........................................................................................................................69

WHAT IS MARKETING?
Marketing is about identifying and meeting human and social needs. In simple terms, it is meeting needs
profitably.
Formal definition as per The American Marketing Association: Marketing is an art and science of choosing
target markets and getting, keeping and growing customers through creating, offering and freely
exchanging products and services of value with others.
SALES VS MARKETING
DIMENSION SALES MARKETING
Focuses on the needs of the Focuses on the needs of the buyer

Focus seller
Focuses on making products Focuses on developing demands among

available to customers potential customers
Strategy through right channels in the
right quantities to meet
demand
Management is sales volume Management is profit oriented

Orientation oriented
Planning is short-run — Planning is long- run — oriented in

oriented in terms of today’s today’s products and in terms of new
Horizon products and markets products, tomorrow’s markets and
future growth
Depends on marketing to Depends on sales to close leads

Dependency generate leads

NEEDS, WANTS, DEMANDS, AND DESIRES

Needs
• Needs are basic human requirements  
• They are states of felt deprivation for basic human requirements
• These include:
o Physical Needs: Food, clothing, shelter, clean air
o Social Needs: Belonging and affection
o Individual Needs: Knowledge and self-expression
• Generally, the products which fall under the needs category of products do not require a push.
Example: I need some food. I feel hungry.
Given below are the different types of needs:

Wants
• Wants are need satisfiers. They are described in terms of objects that will satisfy needs  
• Wants are shaped by culture, society and individual personality  E.g. A hungry person in Australia
may want a hamburger, chips and a cola while someone from Singapore may want noodles and
someone from the South Pacific region may want mango, coconuts and beans
• Thus, wants are not mandatory part of life. You DON’T need a good smelling soap. But you will
definitely use it because it is you want
Example: I want to have a pizza.
Demands and Desires:
• Demands are wants backed by consumer purchasing power i.e. wants for specific products backed
by an ability to pay for them
• Companies must measure not only how many people want their product but how many are willing
and able to buy it
• Customers view products as bundles of benefits and choose products that give them the best
bundle for their money
Desire is the basic difference between wants and demands. A customer may desire something but he may
not be able to fulfil it.
Example: My Demand is to have a Domino’s Pizza, but my desire is to have a Pizza Hut Pizza

CONSUMER BEHAVIOR
Consumer behaviour is the study of how individuals, groups, and organizations SELECT, BUY, USE and
DISPOSE OFF goods, services, ideas, or experiences to satisfy their needs and wants.
A consumer’s buying behaviour is influenced by cultural, social and personal factors with cultural factors
exerting the broadest and deepest influence.
SEGMENTATION, TARGETING AND POSITIONING

Segmentation
It is the process of defining and subdividing a large market into clearly identifiable segments having similar
needs, wants, or demand characteristics i.e. dividing a whole into parts based on various criteria like
geography, demography, behaviour, gender, personality etc.
Why do we need segmentation?
Not all individuals have similar needs. A male and a female would have varied interests and liking towards
different products. A kid would not require something which an adult needs. A school kid would have a
different requirement than an office goer. Market segmentation helps the marketers to bring together
individuals with similar choices and interests on a common platform.
Segmentation is done along the following factors:
Demographic Geographic – Psychographic – Behavioral – Loyalty to

– Population where people people’s attitudes, a product
Characteristics live values and lifestyle
Age Urban Consumer opinions Purchase Occasions
and interests
Gender Suburban Socioeconomic group Usage and benefits
Education Rural Motives Loyalty
Family Size Regional Personality Use rate
Family life City Size Aspirations Price Sensitivity
cycle
Occupation Climate
Social class Landforms
Religion
Ethnicity

Targeting:
Target Marketing involves breaking a market into segments and then concentrating your marketing efforts
on one or a few key segments consisting of the customers whose needs and desires most closely match your
product or service offerings. It can be the key to attract new business, increasing your sales or profitability.
An example of segmentation and targeting:
1. GSKCH has segmented the consumers based on age and targeted each segment with specific
products
Positioning:
Positioning is defined as the act of designing the company’s offering and image to occupy distinctive place
in the target market’s mind.
Positioning is all about ‘perception’. As perception differs from person to person, so do the results of the
positioning map e.g. what one perceives as quality, value for money in terms of worth, etc. will be different
to any other person’s perception. However, there will be similarities in certain cases.
Overnight
Delivery
Speed
Inexpensive

Elements of positioning:
1. Target Audience: For whom the product is intended
2. Points of Parity (POP): Attributes similar to other products in the category. Points of parity are
important because customers expect basic offerings from a category. For example when purchasing
a toothpaste, a customer will expect that it should have freshness as well as it tastes well.
3. Points of Difference (POD): Attributes that differentiates the products from others in the category.
The more the number of PODs the better the positioning. PODs should satisfy the following criteria
• It should be desired by the customer

• It should be sustainable by the producer
Apple introduced the fingerprint scanner to unlock device in the iPhone models. This was a POD
until Samsung and all other manufacturers used the same technology to make it into a POP, thus
nullifying Apple’s unique POD

MARKETING MIX
Its purpose is to make a marketing strategy for a new market or an existing market.
For a product marketing mix has 4 Ps
Place - Distribution Channels

Price
Consumer-Perceived Value (CPV)

CPV is the difference between the perceived customer evaluation of all the benefits and costs of the offering and the
perceived alternatives.
Customer-Perceived Value = Total Customer Benefit – Total Customer Cost
Total Customer Benefit is the perceived monetary value of the bundle of economic, functional and psychological
benefits customers expect from a given market offering because of the product, service, people and image.
Total customer cost is the complete packet or fees a customer expects to pay in the researching, buying, obtaining
and maintaining of a given product or service including monetary, time, energy, and psychological costs.

Can you think of the factors that you considered while deciding to buy your last smart phone?
Product – Benefits
Products provide benefits, and it is for these benefits that they are bought by customers. These benefits
may be classified into three types:
Go-to-Market Strategy
A go-to-market strategy (GTM strategy) is an action plan that specifies how a company will reach customers
and achieve competitive advantage. The purpose of a GTM strategy is to provide a blueprint for delivering a
product or service to the end customer, taking into account such factors as pricing and distribution. A GTM
strategy is somewhat similar to a business plan, although the latter is broader in scope and considers such
factors as funding.

Example of 4 Ps
Product Price
(Nestlé’s bestselling product)
Starting Price of Kit Kat remains unchanged as
Shape - Chocolate bars with different numbers Rs. 5 but the quantity changed.
of fingers 2, 3 or 4. It uses psychological pricing – 13 gm Perk is
Variants – Nestle KitKat ice-cream (America, priced Rs. 5 but 6 gm KitKat is priced Rs. 5.
UK, France and Ireland), Nestle KitKat This tricks people into buying KitKat without
Drumsticks (Malaysia and Australia), Caramac realizing they get less chocolate for more
(2005) price.
Feature - chocolate + Biscuit, crunchy It’s available in price Rs. 5, Rs. 10, Rs. 15, Rs.
Package – red & white 50
Competitors - Perk, Munch
Place Promotion
KitKat is available at retail stores, super Have a break, have a kit kat
market etc. It is also available at websites
like Big Basket, Grofers etc. Online – Facebook, Instagram, Twitter
Produced in - 21 countries websites that asks the visitors to take a break
Available in - nearly 100 countries and have a KitKat
Offline - newspapers, magazines, billboards,
posters, televisions, various places made for
people to rest between their work to have a
break
Exclusive Ads - “Have a Break, Have a KitKat”
ads in 90s, “Dancing Panda” in 1987

Extended Ps
In case of a service 3 more Ps are added to
the marketing Mix, together they make 7 Ps
for an extended marketing mix of a service .
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Physical Evidence
7. Process
Process
A process involves customers at every step and it is used to give quality services. Efficient
process ensures that the service is perceived as being dependable by the target segment.
1. Flow of activities 2. Number of steps
3. Level of customer involvement
Eg. A highly focused marketing process of going on a cruise – When we arrive we are greeted
and our baggage is taken to our room. We have a week of services from restaurants and
entertainment, to casinos and shopping.
Physical evidence
It is the material part of a service. As, there are no physical attributes to a service, so a consumer
tends to rely on material cues.
1. Uniforms 2. Office/showroom
3. Packaging 4. Business cards
5. Internet/web pages 6. Signage (e.g. for defense)
7. Paper work (e.g. invoices, tickets)
E.g. Tourism Industry (Essel World), Telecom corporate packs (Vodafone, Airtel, Jio), large banks
and insurance companies (SBI, HDFC)
People
People are used to produce and consume service or experiences. Customers buy from people
they like, so the attitude, skills and appearance of all staff need to be first class.
1. Employee 2. Employee customer Interaction
3. Training 4. Remuneration
5. Communication Culture and values
Eg. A tour guide or restaurant waiter/manager can affect our experience to travel or eat

For Rural Areas we can use 4 A’s
Example
Acceptability Affordability
• Came up with a new product, • Quantity that Colgate offered
Colgate Ayurvedic Tooth powder consumer was much higher than
targeting rural rich and the competitor at the same price
consuming class • Price was set low for market
• Came up with a sachet of tooth penetration
powder for rural population who • 50 gm – Rs 20 (Current Price)
buy in smaller lots
4 As
Availability Awareness
• In 1998 Colgate 6 million people • Colgate created awareness
in 20k people by melas, door to door
• Tying up with initiatives like E- selling, haats, sampark
choupal and Disha to strengthen campaign, vans, free dental
distribution network checkups, free samples

To focus more on customer’s wants and needs we can use 4 Cs

Brand Personality
Specific mix of human traits that we can attribute to a particular brand
The theory is that consumers are more likely to choose brands with which they can associate their own
personalities. Brands are generally positioned in the following 5 traits:
Some marketers carefully orchestrate brand experiences to express brand personalities. For example, Axe,
the popular deodorant, caters to consumers who want others to view them as attractive and appealing.
These traits may vary depending on the socio-economic factors in different geographies with different
people.
Eg.
Japan lacks ‘Ruggedness’ and has Peacefulness instead
China lacks ‘Ruggedness’ and ‘Sincerity’ and has ‘Joyfulness’, ‘Traditionalism’ and ‘Trendiness’ instead

PUSH VS PULL MARKET
Pull Push
Advertisements: Radio, TV, Print Ad, Online Sales promotion: Trade promotions - buy one
get one free
Consumer Promotion: 30% extra Pricing offers: Get 1000 Rs. Off on purchase
above Rs. 10000
PR & Publicity: Non-paid, online blogs, press releases, Personal: Face to face sales push
etc.
Events and Experiences: mall activations Direct to consumer: Tele marketing

PRODUCT MIX – LENGTH, BREDTH

Product Mix
The complete set of all products that a company offers to the market is called as the Product mix of the
company. For example, the below picture shows the complete product mix of Proctor and Gamble:
Product Line
A product line is a group of products within the product mix that are closely related, either because they
function in a similar manner, are sold to the same customer groups, are marketed through the same types
of outlets or fall within given price ranges.
Example: For HUL Soaps is one product line.
Product Line Breadth

The breadth (or width) of the product mix consists of all the product lines that the company has to offer to
its customers. If we take P&G, for example, the breadth of the major product lines would consist of hair
products, oral care, soaps and detergents, baby care, and personal care. This means that the product mix
breadth is five.
Product Line Depth

The number of products in a product line refers to its product line depth. The depth of product blend refers
to how many variants are obtainable of each product in the line. For example, since Lux comes in 4 type of
scents (exotic flower petals & almond oil, jojoba oil, and milk cream, fruit extracts and honey and sandal
saffron in milk cream), it contains a depth of 4.

Length of the Product Mix

It refers to the whole number of items in the mix. For example, ABC Company may have two product lines
and five brands within each product line. Thus, ABC's product mix length would be ten.
Product Mix Consistency

It pertains to how closely related product lines are to one another------in terms of use, production and
distribution. A company's product mix may be consistent in distribution but vastly different in use. For
example, a small company may sell its health bars and health magazine in retail stores. However, one
product is edible and the other is not.

PRODUCT LIFE CYCLE

PLC describes the various stages that a product goes through from the time it was initially thought of until it
is finally removed from the market.
Product Development Stage: This is the stage where the product is conceived and developed. This stage is
characterized by high R&D costs and losses in the form of manufacturing costs.
Introduction Stage: This is the stage where products are introduced to the market. This stage is characterised
by high marketing costs since the company invests a lot in creating awareness for the product. Sales growth
is slow in this stage due to which the company experiences huge losses during this period. Due to the inability
to continuously sustain losses, the failure at this stage is the highest.
UberEATS is an online food delivery platform started by Uber. It has been
recently introduced to the market and is currently in the introductory
phase.
Growth Stage: This stage is marked by a sharp increase in sales and the product becomes profitable in this
stage. Company spends on marketing to strengthen market share and capture market share. This stage also

experiences competition from new entrants who now see value in entering the segment. This stage also
experiences the highest profits.
Reliance Jio is now in its growth phase, dealing with high growth rates and
acquiring more and more customers.
Maturity Stage: This stage sees stagnation in profits and the sales after growing for a certain period start
going down. Companies often spend a lot on innovation and promotions to sustain this stage as long as
possible. This is also a stage that is characterised by strong competition since the segment is now an
established one. A product might be in this stage for months or for decades.
LED TVs are currently in the maturity stage, coming up with new features
and innovation to sustain their sales.
Decline Stage: This is the stage when players start moving out of the segment because it has been replaced
by better and more lucrative alternatives. Companies reduce their marketing spends and do not invest in
innovations and the product sells by itself. The sales in this stage continuously decrease until the product
goes obsolete
Desktop computers are currently in the decline stage with a decreasing

market every year and little to no innovation
BRAND EXTENSION
Brand extension is a method used by companies to launch a new product by using an existing brand name.
Brands Extensions fall into general categories:

Benefits:
• Brand extensions allows company to leverage its existing customer base and brand loyalty to increase
profits and promote new products with reduced promotional costs because the new lines or brands
benefit from being part of an established name.
• Brand extension allows achieving success much quicker than it would have as an original brand.
Disadvantages of brand extension:
• Brand dilution: It occurs when consumers start thinking less of the brand. If a firm launches extensions
consumers find inappropriate, they may question the brand integrity or become confused or even
frustrated.
• Brand confusion: Line extensions may cause the brand name to be less strongly identified with one
product
E.g. By getting into powdered milk, soups and beverages, Cadbury ran the risk of losing its more specific
meaning as a chocolate and candy brand
• Damage to parent brand: Product failures can sometimes impact brand equity if the extension is seen as
very similar to the parent brand.
E.g. Criticism for Audi 5000 also spilled over to the 4000 model
• Cannibalization: Consumers may switch to extensions from parent-brand offerings, hence cannibalizing
the brand sales.
Coca Cola introduced Minute Maid to compete with its own soft drinks business for 'throat share'.
Wheel and Surf Excel are detergent powder brands from HUL. These companies target different
segments when they introduce these products, but cannibalization might happen when consumers
buy across segments.

ATTACKS
Attacks are aggressive marketing campaigns to increase brand awareness and respond to competitors'
marketing strategies. Sometimes, meek campaigns and responses don't generate any buzz and companies
need to get aggressive and create unique campaigns that stay in the minds of consumers to remain
competitive.
Frontal Attack:
Attacker matches its opponent’s product, advertisement, price and distribution.
When Hindu took on TOI for Page 3 content
Flank Attack:
This type of attack targets weak spots or gaps. They can be geographic gaps (where competition product or
distribution is weak) or product gaps (when competition product is not meeting some specific needs).
For example, Absolut performed a flank attack in the vodka market purposely pricing themselves about 50
percent higher than leading competitor Smirnoff, they flanked them on the nearly established premium
vodka market. A few years later, Grey Goose offered vodka priced 60 percent higher than Absolut, in turn
flanking them in the “ultra-premium” vodka market.
Defence against Flank attack: A dominant company may defend against potential flank attacks by creating
its own flanker brand—a brand to occupy the flank position on a core product.
For example, to entice a new market segment, the makers of Tide laundry detergent launched its Cheer
brand as a lower-cost alternative to Tide. While sales of Tide fell a little, the combined sales of Tide and
Cheer were greater than Tide’s sales before the launch. Sitting on Tide’s low-price flank, any flanking attack
made by a future competitor will threaten Cheer before it can threaten Tide, the core product.

Guerrilla Attacks:
These are conventional and unconventional attacks to embarrass competition which include selective price
cuts, intense promotional blitzes and even legal actions.
DHL vs FEDEX SAMSUNG vs APPLE
Pantene vs Dove

Old Spice vs AXE
Axe guerrilla marketing showing girls running after a man
Guerrilla Marketing by GOT through print advertising

BCG MATRIX
The BCG matrix uses the criteria of market growth rate and relative market share to analyze business units
and allocate financial resources for a company.
The BCG analysis helps the company in deciding which entities in the business portfolio are actually
profitable, which duds are, which you should concentrate on and which gives you a competitive
advantage over others.
BCG matrix has four cells, with the horizontal axis representing relative market share and the vertical axis
denoting market growth rate. The mid-point of relative market share is set at 1.0
This framework assumes:

1. An increase in relative market share will result in an increase in the generation of cash.
2. A growing market requires investment in assets to increase capacity and therefore results in the
consumption of cash.
The four categories are:

1. Dogs (Low market share, Low growth prospects)
• Dogs have low market share and a low growth rate and thus neither generate nor consume a large
amount of cash

• They are cash traps because of the money tied up in a business that has little potential
• Such businesses are candidates for divestiture
Strategies for Dogs:

• The company can either divest the product altogether
• Product can be revamped through rebranding / innovation / adding features etc.
2. Question marks (Low market share, High growth prospects)

• Question marks are growing rapidly and thus consume large amounts of cash, but because they have
low market shares they do not generate much cash. The result is a large net cash consumption
• They have the potential to gain market share and become a star, and eventually a cash cow when
the market growth slows
• If the question mark does not succeed in becoming the market leader, then after perhaps years of
cash consumption it will degenerate into a dog when the market growth declines
Strategies for Question marks:

• Question marks must be analyzed carefully in order to determine whether they are worth the
investment required to grow market share
• Companies are advised to invest in question marks if the product has potential for growth, or to sell
if it does not.
3. Stars (High market share, High growth prospects)

• The business units or products that have the best market share and generate the most cash are
considered stars
• Monopolies and first-to-market products are frequently termed stars
• However, because of their high growth rate, stars also consume large amounts of cash. This generally
results in the same amount of money coming in that is going out
• Stars can eventually become cash cows if they sustain their success until a time when the market
growth rate declines
• Companies are advised to invest in stars.
Strategies for Stars: All types of marketing, sales promotion and advertising strategies are used for Stars
because of the high competition and rising market share to increase and retain market share.
4. Cash Cows (High market share, Low growth prospects)

• Cash cows are the leaders in the marketplace and generate more cash than they consume

• They provide the cash required to turn question marks into market leaders, to cover the
administrative costs of the company, to fund research and development, to service the corporate
debt, and to pay dividends to shareholders
• Companies are advised to invest in cash cows to maintain the current level of productivity, or to
"milk" the gains passively
Strategies for Cash Cows:

• Strategy generally includes retention of the market share
• Thus customer satisfaction programs, loyalty programs and other such promotional methods form
the core of the marketing plan for a cash cow product.
Disadvantages:
• The model uses only two dimensions (i.e. growth and share) to assess competitive position, others are
ignored
• More emphasis on cost leadership rather than differentiation as a source of competitive advantage
• A high market share does not necessarily lead to profitability at all times
• Assumes that each business unit is independent of the others. In some cases, a business unit that is a
"dog" may be helping other business units gain a competitive advantage
BCG Matrix for Colgate

ANSOFF MATRIX
The Ansoff Matrix also known as the Ansoff product and market growth matrix is a marketing planning tool
which usually aids a business in determining its product and market growth. This is usually determined by
focusing on whether the products are new or existing and whether the market is new or existing.
The matrix shows four strategies you can use to grow and analyse the risks with each.
Ansoff's matrix provides four different growth strategies:
Market Penetration
• This involves increasing market share within existing market segments. This can be achieved by selling
more products/services to established customers or by finding new customers within existing markets.
• The risk involved in its marketing strategies is usually the least since the products are already familiar to
the consumers and so is the established market.
A good example is how Cadbury India is pushing for chocolates to be used as small gifts in the form of
Cadbury Celebrations instead of more traditional sweets used during Diwali festival.
Product Development
• Product Development involves developing new products for existing markets. It involves thinking about
how new products can meet customer needs more closely and outperform the products of competitors
• It can also involve the modification of an existing product so that it can appeal more to the already
existing market.
• It is slightly riskier, because you're introducing a new product into your existing market.

A prime example of this was the launch of Cherry Coke in 1985 – Coca-Cola’s first extension beyond its
original recipe – and a strategy prompted by small-scale competitors who had identified a profitable
opportunity to add cherry-flavoured syrup to Coca-Cola and resell it. The company has since gone on to
successfully launch other flavoured variants including lime, lemon and vanilla.
Market Development
• This strategy entails finding new markets for existing products. Market research and further
segmentation of markets helps to identify new groups of customers
• This strategy assumes that the existing markets have been fully exploited thus the need to venture into
new markets
• There are various approaches to this strategy, which include: New geographical markets, new
distribution channels, new product packaging, and different pricing policies
Example: The launch of iPhone stores in 22 countries worldwide to improve the market share and
reach. The countries are: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong,
Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland,
and UK
Diversification
• This involves moving new products into new markets at the same time
• It is the riskiest strategy among the others as it involves two unknowns, new products being created and
the business does not know the development problems that may occur in the process. Additionally,
you're introducing a new, unproven product into an entirely new market that you may not fully
understand
• There are two types of diversification
- Related diversification: This means that the business remains in the same industry in which it is
familiar with.
A cake manufacturer diversifies into a fresh juice manufacturer. This diversification is in the same
industry which is the food industry
- Unrelated diversification: In this, there are usually no previous industry relations or market
experiences. One can diversify from a food industry to a mechanical industry for instance
Richard Branson took advantage of the virgin brand and diversified into various fields such as
entertainment, air and rail travel foods etc.

Below is Ansoff Matrix applied to McDonald’s

Market research
Market research consists of systematically gathering data about consumers and then analysing it to better
understand their needs. Market research results are then used to identify and define marketing
opportunities and problems; generate, evaluate, refine marketing actions; monitor marketing performance
and improve understanding of marketing as a process. The Market Research process includes:
1. Define the problem and research objectives: Understand the root question that needs to be
addressed by market research. E.g. “Business problems” might be “How should we price this new
widget?” or “Which features should we prioritize?” or “How are customers responding to our
offering?
2. Determine research design: 4 types of research approaches depending on the objectives

• Observational research is used to gather data by observing customers as they shop or consume
products. E.g. Large retail chains use new age technologies to understand consumer behavior
• Focus group research is a gathering of 6 to 10 people carefully selected to discuss various topics at
length where the questions are based on the marketing research agenda. E.g.: Gathering of women
by a cosmetic company to understand how they view the product and what they expect etc.
• Survey research is used to assess thoughts, opinions, and feelings of larger set of customers by
standardized questionnaires through online or offline surveys, face to face interviews, telephonic
interviews etc. E.g. Researchers approach people in a mall and ask them to fill out surveys
• Behavioral research is to trace and analyze consumer purchase behavior from customer database
and in-store scanning data to make reliable conclusions E.g. Amazon analyses consumer preferences
based on usage patterns and then shows customized recommendations.
3. Decide research instrument: The market research instrument to collect the data can be following
• Qualitative market research data collection ranges from focus group, case study, participation
observation, innovation game and individual depth interview
• Quantitative marketing research involves the construction of questionnaires and scales which aids
in the conduction of surveys and experiments.

4. Sample design: Sampling unit: Whom should we survey? Sample size: How many people should
we survey? Sampling procedure: How should we choose the respondents?
5. Analyze the data: Extract findings by tabulating the data and developing summary measures
6. Visualize & communicate results: Make decisions
PORTER’S FIVE FORCES

Porter’s five forces is a tool used to analyse any Industry’s attractiveness and likely profitability. It helps
you answer the following questions:
• Whether or not a business can be profitable, based on the level of competition within a certain industry.
• How does your competition’s action, changes your current bottom line and future planning?
Bargaining Power of Suppliers

• An assessment of how easy it is for suppliers to drive up prices.
• This is driven by the:
• Number of suppliers of each essential input
• Uniqueness of their product or service
• Relative size and strength of the supplier
• Cost of switching from one supplier to another

High Bargaining Power for Suppliers
For the Airline Industry, Boeing and Airbus effectively form a duopoly of suppliers of new jetliners for the
commercial airline industry. These two giants hold 66% of the market share, which leads to their high
bargaining power, also because of the high quality of airplanes manufactured by them.
Low Bargaining Power for Suppliers

In the two-wheeler automobile industry in India, the number of players in the market is few as compared to
the number of suppliers. These suppliers are heavily dependent on a few or a single company for supplying
their products. This means that suppliers have very little say and influence in the automobile industry.
Threat of New Entrants

• This examines how easy or difficult it is for competitors to join the marketplace in the industry being
examined.
• If it takes little money and effort to enter your market and compete effectively, or if you have little
protection for your key technologies, then rivals can quickly enter your market and weaken your
position.
• If you have strong barriers to entry, then you can preserve a favorable position and take fair
advantage of it

Threat of New Entrant is Low
With the arrival of Reliance Jio, price war has broken out in the telecom industry and profit margin for most
of the companies in this sector has gone very low or negative. Entering into this sector would not make sense
at this point of time.
Also, the high investment and operational cost required to enter the market (like spectrum bidding) would
act as barriers to entry for the new entrants.
Threat of New Entrant is High

Beer Industry has low fixed costs, low regulations (e.g. India, US) and little IP involved. High Market Growth,
Presence of weak brands and low cost of switching makes it easy and sound proposition for a new entrant to
enter the sector.
Bargaining Power of Buyers

• An assessment of how easy it is for buyers to drive prices down.
• This is driven by:
• Number of buyers in the market
• Importance of each individual buyer to the organization
• Cost to the buyer of switching from one supplier to another
• Substitutes are unavailable, buyer purchases product in low volume.
• Buyer is not much informed regarding the product

Low Bargaining Power for Buyers

When it comes to industrial adhesives, consumers lose out on price bargaining power as Pidilite enjoys the
superior quality advantage. So buyer power is low. In fact, Pidilite charges a premium of 10-25%over its
competitors because of superior quality that consumers don’t want to let go off.
High Bargaining Power for Buyers
For bottled fruit beverages market, buyers have a fair amount of bargaining power. Large retailers execute
huge bargaining power, because they buy in bulk, which is also complemented by none of the brands present
in the market, commanding strong loyalty from the end consumer. In case of individual buyers, with the
presence of so many alternatives in beverage industry, consumers could easily switch to any other.
Threat of Substitutes
• When close substitute product exists in a market, it increases the likelihood of customers switching
to alternatives in response to price increases.
• In order to discover these alternatives, one should look beyond similar products, which are branded
differently by competitors. Instead, every product that serves a similar need for customers should be
taken into account.
• This reduces both the power of suppliers and market attractiveness.
High Threat of Substitutes

Threat of substitutes is high for aerated beverages industry. Consumers are getting more health sensitive and
fitness oriented. Aerated drinks usually contain high amount of sugar or artificial sweetener, and are
considered to be unhealthy. Consumers might be willing to switch to other alternatives like fruit juices, energy
drinks, coffee drinks etc. Some of these alternatives might have harmful effects too but they are still
considered to be healthier than present day aerated beverages.
Low Threat of Substitutes
In the men’s shaving industry, Razor products are viewed as a necessity. These include razor blades or
machines. Also, due to lag in product research and development, along with the nature of this type of
product, the threat of substitutes is very low and this product enjoys significant market share.
Rivalry among existing competitors

• The main driver is the number and capability of competitors in the market.
• Many competitors, offering undifferentiated products and services, will reduce the market
attractiveness
High Rivalry among competitors

Taking the example of chocolate industry. Many competitors like (Nestle Kit Kat, Cadbury Dairy Milk, Ferrero
Rocher, Amul Dark Chocolate) are vying for the supremacy for several years. Rivalry will always be strong
among these companies because they sell from the same types of stores and their products are similar in
some respects.

Low Rivalry among competitors

Taking the example of railroad transportation in India, Indian Railways have the monopoly over the same. It
is the only rail operator in India. The whole unit is divided in zones that are further divided into divisions that
is owned and operated by Ministry of Railways under the Government of India.

FMCG Network Distribution
FACTORY WAREHOUSE
DISTRIBUTOR
RETAILER WHOLESALER

Manufacturer
• The inventory is under the ownership of the company, only until it reaches the distributor. Stockiest /
Distributors are then responsible for distributing it to the retailers. Each Distributor may serve 500-1000
retailers in proximity
• Two kinds of Distributors are there, one who handles products belonging to only your brand and others
who handles products of other brands as well. These latter type of distributors handle a typical product
category e.g. Hair Oil
• To meet sales target, companies try to motivate the distributors with workshops about business and
marketing, good warehouse practices and other incentives.
• Powerful Brands do operation on cash basis, because in this case distributors don’t have an option. If
there is a lot of consumer pull for the Brand, then even if the Brand gives them thin margins (they gain
on volume), retailers would want to stock the brand and distributors are forced to stock it. This is where
Marketing comes into play to increase the Brand pull
Distributor
• Distributors appoint salesman to take orders from the retailers and then delivery is made through a
van / truck
• Retailers can buy either from distributors or wholesalers. Following are kept in mind while deciding
the same:
• Distributor provides you with better servicing, replacement of spoilt products, credit
facilities of 2 weeks etc.
• Wholesaler will give you more margins, but no credit facilities, no compulsion on storing a set
of SKUs etc.
Wholesale/Retailer

ABOVE THE LINE MARKETING

Above the Line (ATL) advertising is where mass media is used to promote brands and
reach out to the target consumers. These include conventional media as we know it,
television and radio advertising, print as well as Internet. This is communication that is
targeted to a wider spread of audience, and is not specific to individual consumers. ATL
advertising tries to reach out to the mass as consumer audience.
Mass Targeting
CONSUMERS
Specific Targeting
BELOW THE LINE MARKETING

Below the line advertising is more one to one, and involves the distribution of pamphlets,
handbills, stickers, promotions, brochures placed at point of sale, on the roads through
banners and placards. It could also involve product demos and samplings at busy places
like malls and market places or residential complexes. For certain markets, like rural
markets where the reach of mass media like print or television is limited, BTL marketing
with direct consumer outreach programs do make the most sense.

ATL (STRATEGIES EMPLOYED)

• Regular TV commercials from time to time to connect with the consumers.
Great Khali Campaign by

Ambuja Cement
Zoo Zoo campaign by

Vodafone
• Apple is very actively communicating through billboards and hoardings. In India, IPhone billboards can
be seen at cross roads, buildings and shops.
• Using digital marketing, companies try to get users who visit their website to sign up on the same. Once
they are able to do the same, they can use the data to send email communications of latest product
launches, discounts offered, price changes etc. This provides an opportunity for direct marketing to the
consumer.

THROUGH THE LINE MARKETING (TTL)

When you are communicating with a niche audience BTL is better. However, digital media has more or less
broken these boundaries of ATL versus BTL as digital communication can address both at the same time.
TTL integrates both ATL and BTL activities. BTL communication from brands is rapidly becoming a dying
form of reaching out to the audience with agencies and clients adopting the integration of both ATL and
BTL strategies for better results.
Digital Marketing offers the TTL marketing benefits. This provides more targeted and two-way
communication, with consumer playing a more participatory role in marketing process.
BRAND POSITIONING – MONITORING COMPETITION

Brand positioning requires an organizational commitment. It is not something that is constantly changed. At
the same time, it is important to regularly monitor the desirability, deliverability and differentiability of the
brand’s POPs and PODs in the marketplace to understand how the positioning might have to evolve or rarely
replaced.
When analyzing potential threats posed to the brand positioning by competitors three high level variables
are useful:
Share of Market Share of Mind Share of Heart

Competitor’s share of Creating and Creating and
the target market maintaining public maintaining an
Companies that make awareness of your emotional bond with
steady gains in mind brand. The aim is to the customers.
and heart share will make the brand In responding to the
inevitably make gains synonymous to the statement, “Name the
in market share and product offered. company from which
profitability you would prefer to
E.g. Coca Cola has In responding to the buy the product”
capitalized both on statement, “Name the E.g. Maggi is still the
Mind Share and Heart first company that favourite instant
Share that even after comes to mind in this noodles. Even after
the famous ‘Pepsi industry” running into trouble
Challenge’ Coca Cola E.g. Pidilite’s Fevicol due to regulations,
has been winning the has become Maggi has made a
Cola Wars synonymous with comeback and is again
Adhesives a market leader.

BRAND EQUITY
Brand Equity is the value premium that a company realizes from a product with a recognizable name as
compared to its generic equivalent. Companies can create brand equity for their products by making them
memorable, easily recognizable and superior in quality and reliability. Mass marketing campaigns can also
help to create brand equity.
The additional money that consumers are willing to spend to buy Coca Cola rather than the store brand
of drink is an example of brand equity.

MANAGING BRAND EQUITY

Brand Revitalization
Focus to capture lost sources of brand equity and identify and establish its new sources. This may include
brand modification or brand positioning. In short it is to make a brand comeback.
Baleno was launched in 1999. Although it had exceptional quality, it saw

a lukewarm response due to its high price. Later Baleno reduced the
price substantially. Despite these efforts, it failed to deliver volumes
resulting in its withdrawal in 2006. The launch of the new Baleno
hatchback aims to break into the premium segment of the Indian
automotive hatchback market competing with the likes of i20 and Polo.
Mountain Dew, a Pepsi product, was launched in 1969 with the

tagline “Yahoo Mountain Dew” that flourished in the market till 1990.
After that the sales of mountain dew declined due to which it was re-
positioned, its packaging was changed, and the tagline was changed
to “Do the Dew”. It targeted the young males showing their audacity in
performing the adventurous sports. This led the Mountain Dew to the
fifth position in the beverage industry.
Cinthol has also revitalized itself over the past 65 years to constantly build its brand equity.
Inception in Cinthol Positioned as 24

1952 developed a Hour Freshness
Positioned as a new image of Soap with the
"Delightfully Freshness with Tag Line - "Don't
perfumed" soap Cinthol Lime Stop"
1952 1986 1989 2000 2008 2012
Cinthol roped in Positioned as a Positioned to resonate

Vinod Khanna as family soap - with the Youth, based on
the Brand "Tan Tazza, To the insight that the young
Ambassador. Man Tazza" generation wants to
The messaging
explore life to the fullest.
of the campaign
was - "I use Changed the packaging to
Cinthol. Do represent a more Urban
you?" feel with the Tag Line –
“Alive is Awesome”

Brand Reinforcement
Focus on maintaining the brand equity by keeping the brand alive among both the existing and new
customers.
A brand needs to be carefully managed so its value does not depreciate. Brand leaders of 70 years ago that
remain leaders today — companies such as Amul, Parle-G, Coca Cola — only do so by constantly striving to
improve their products, services, and marketing.
Marketers can reinforce brand equity by consistently conveying the brand’s meaning in terms of: (1) What
products it represents, what core benefits it supplies, and what needs it satisfies, and (2) how the brand
makes products superior, and which strong, favorable, and unique brand associations should exist in
consumers’ minds.
The Amul girl was created in 1966. Half a century later, she is still seen in
witty advertisements every day. The ads funnily address pressing issues
yet are able to evoke nostalgia for one of India's most loved mascots.

COMPETITIVE ADVANTAGE
The theory was proposed by Michael Porter in 1985. Competitive advantage occurs when an organization
acquires or develops an attribute or a combination of attributes that allow it to outperform its competitors.
It is the ability to perform at a higher level than others in the same market or industry. There are four
strategies that can be followed to achieve a competitive advantage.
Scope of Business Products
Broad Narrow
Cost Leadership: Cost Focus:
• The idea here is to produce goods at the lowest • Companies that use Focus strategies
cost possible, typically by exploiting economies concentrate on particular niche markets
of scale • By understanding the dynamics of that market
• Nearly all segments in the market focus on and the unique needs of customers within it,
minimizing costs develop uniquely low-cost or well-specified
• If the seller can achieve the average selling price products for the market
while having the lowest costs, it can gain the • Because they serve customers in their market
greatest profits uniquely well, they tend to build strong brand
• Usually followed by companies that have loyalty amongst their customers
standard products that have low differentiation • This makes their particular market segment less
and are accepted by a wide range of customers attractive to competitors
•
Costs
The greatest risk in pursuing a Cost Leadership

strategy is that these sources of cost reduction
are not unique to you, and that other
competitors copy your cost reduction strategies Redbox, for example, uses vending machines placed
outside grocery stores and other retail outlets to rent
Amazon has massive warehousing facilities and
DVDs of movies for $1. There are ways to view movies
processing capability, which give it physical economies
even cheaper, such as through the flat-fee streaming
of scale. That in turn gives it cost advantages. As its
video subscriptions offered by Netflix. But among
CEO, Jeff Bezos himself says: “There are two kinds of
firms that rent actual DVDs, Redbox offers
companies: Those that work to try to charge more and
unparalleled levels of low price and high convenience.
those that work to charge less. We will be the second.”
Differentiation Focus: Differentiation Leadership:

• Differentiation involves making your products or • The business targets a much larger audience
services different from and more attractive with its offerings
than those of your competitors • This strategy involves selecting one or more
• The needs of the customers in this segment are criteria used by buyers in a market - and then
differentiated from the broad customer positioning the business uniquely to meet those
• The important issue is to know that the criteria
customers in this segment have different needs • Usually associated with charging a premium
and to identify them price for the product - often to reflect the higher
• This is a niche marketing strategy production costs and extra value-added features
Differentiation
provided for the consumer

• Differentiation is about charging a premium
price that covers the additional production
costs, and giving customers clear reasons to
prefer the product over others
Bugatti Automobiles, a subsidiary of Volkswagen The rapid rise of Patanjali is an example of
AG, is a luxury car brand which caters to the high- differentiation leadership. While FMCG products
income car enthusiasts. It came out with its focused on features and benefits, Patanjali capitalized
Bugatti Veyron model purely to come out with on the growing trend of health consciousness to
the ‘Fastest Car in the World’ tagline and provide establish a totally differentiated disruptor FMCG
differentiation in the luxury segment to target product line with full focus on herbal and mineral
the super-fast cars lovers products

DIGITAL MARKETING
Digital marketing is an umbrella term for the marketing of products or services using digital technologies,
mainly on the Internet, but also including mobile phones, display advertising, and any other digital medium
that may or may not require the internet. It consists of search engine optimization, search engine marketing,
content marketing, influencer marketing, e-commerce marketing, social media optimization, email direct
marketing, etc.
We will explore some of them here:
• Search Engine Optimization (SEO): The process of affecting the visibility of a website or webpage’s
in a search engine’s organic results.
Ever wondered, on searching “Healthy Food Options” you get first 10 links on google from the
same site! Yes, Zomato it is. That’s Search Engine Optimization for you.
• Search Engine Marketing: This involves the promotion of websites by increasing their visibility in search
engine results pages (SERPs) primarily through paid advertising. Advertisers are charged any a pay per click
(PPC) model where they pay a pre-decided amount every time someone clicks on the advertisement.
The search results on google with a prefix “Ad” are the example of this. Companies pay pre-
decided amount per click on this ad to Google.
EXPERIENTIAL MARKETING
Experiential marketing is a grassroots marketing tactic that not only communicates features and benefits but
also connects a product or services with unique and interesting experiences. Compared to mass media
campaigns, experiential events tend to communicate on a much more personal level, generate a deeper
level of emotional engagement, and result in better conversion rates, all at relatively low cost.
It is also known as “engagement marketing” and “event marketing”. Rather than looking at consumers as a
passive entity in marketing, this branch believes that consumers should be involved in the production and
co-creation marketing programs, developing relationship with brand.
Anheuser Busch: Budweiser Beer Garage: During 2016 SXSW, Anheuser Busch’s experiential
campaign consisted of a full-on beer garage that involved all things Budweiser. From a comfortable
lounge to a bar with Budweiser beer on tap, the garage was full of multiple sections that created
an entertaining atmosphere. The most popular part of the beer garage was the 4 -D immersive
virtual experience that put participants through a to ur of the Budweiser brewing plants.
Coca-Cola is famous for conducting such experiential events through various campaigns like the one on
friendship day:
Experiential marketing builds customer relationships for the long term. It is also to be noted that experiential
marketing generally cannot be used to communicate with people who prefer less intrusive marketing
messages.

SOCIAL MEDIA MARKETING

Social media marketing refers to the process of gaining website traffic or attention through social media sites
like Facebook, Twitter, and Instagram etc. Social media marketing programs usually centre on efforts to
create content that attracts attention and encourages readers to share it with their social networks. This
form of marketing is driven by word- of-mouth, meaning it results in earned media rather than paid media.
Through social networking sites, companies can interact with individual followers. This personal interaction
can instil a feeling of loyalty into followers and potential customers. Also, by choosing whom to follow on
these sites, products can reach a very narrow target audience achieving higher return on marketing
investments.
It’s safe to say that this year Nike’s #DaDaDing campaign
shone the brightest in the social-verse through both its audio
and visual. With its captivating tune and the presence of
Deepika Padukone with other fierce Indian sportswomen of
varied fields.

GUERRILLA MARKETING
Guerrilla Marketing is an advertising strategy that focuses on low-cost unconventional marketing tactics that
yield maximum results. The original term was coined by Jay Conrad Levinson in his 1984 book ‘Guerrilla
Advertising’.
Guerrilla marketing is the act of executing an unusual or unexpected marketing activity in a common,
everyday place in order to generate a buzz for products or services. The main point of guerrilla marketing is
to get your business's name in front of as many people as possible in an unexpected way. Guerrilla marketing
is usually a low or no-cost form of marketing that can reap substantial profits if implemented correctly.
IMAGE AND EMOTIONAL MARKETING

Companies are increasingly turning to image and emotional marketing to win customer mind share and heart
share. Although this has gone on from the beginning of time, today it is accelerating. In today’s economy,
companies rapidly copy any competitor’s advantage until it no longer remains. Volvo’s benefit of making the
safest car means less when customers start seeing most cars as safe.
More companies are now trying to develop images that move the heart instead of the head. Those addressed
to the head tend to state the same benefits. So, companies are trying to sell an attitude like Nike’s “Just do
it.” Celebrities are shown wearing “milk moustaches.” These campaigns work more on affect than cognition.

SURROGATE MARKETING
Surrogate marketing, uses the marketing campaign of a brand or product, to convey a message which is
related to another brand or product. This is done due to various reasons. Primary reason is to circumvent
the ban on advertising for a particular type of product(s).
Kingfisher’s campaign in IPL: “Divided by Team, United by Kingfisher”. Here they say Kingfisher is
the partner of good times. They never talk about the product they intend to market.
Surrogate marketing may also be used in cases where the use of a product is linked to a service. In such
cases, the service is advertised widely, and the service provider uses only the product in question.
For Example, Custom Fitness Tracker Apps of brands like Nike and Under Armour may be advertised.
But, without a Nike Shoe or a UA pad, the app can’t function anyway. So, it would be surrogate
Surrogate
marketingadvertising is widely prevalent
for the products in India,
through the due to bans imposed on advertising alcoho
app service
This is how marketing campaigns of companies changed after ban in India:

Trends before Ban in advertising – Direct Advertising
• “Wills” a cigarette brand of ITC, used to sponsor the Indian Cricket Team/Matches
• Tennis Tournaments were sponsored by “Gold Flake”, another cigarette brand
• “Manikchand”, manufacturers of ghutka, sponsored the Filmfare Awards for number of years
Advertising post imposition of Ban
However, after the imposition of a ban on advertising for liquor/tobacco and related products, brands are
increasingly using surrogates for advertising. Here are a few examples
BRAND SURROGATE
Seagrams Music
McDowells Water and Soda
Bagpiper Water, Soda, and Music
Bacardi Music
Kingfisher Water and Calendars
Wills Lifestyle Apparels, Accessories

FADS, TRENDS AND MEGATRENDS

Fad is unpredictable, short-lived and without social, economic and political significance.
• Fads can be a powerful influence over consumer purchases and can even move entire industries in a
new direction, at least for a time.
• Riding the wave of a fad can get a company big profits relatively quickly. It can also leave the
marketers stranded when the fad inevitably ends.
• Fads can disappear just as quickly as they begun, and having an escape route is one way to eliminate
the dangers of being left with piles of unused inventory.
One of the major Fads that arose during the recent times was
the Fidget Spinner- a small toy that could be used by restless
people to while away time. The product rose to popularity and
sales increased before dipping and the toy becoming lowly
popular.
Other examples: Pet Rock, Marketing through Vines, Crocs, Pokemon-Go, YOLO
Trend is a direction of sequence of events with more momentum, predictability and durability as compared
to a fad.
• Trends have identifiable and explainable rises that are driven by audience needs.
Eg- Evidence based medicine, Blackberry Messenger, Fitness Brands

Megatrend is a large social, economic, political, and technological change that is slow to form, and once in
place, influences us for some time – between 7 and 10 years or longer.
Eg- Content Management Systems, Internet of Things, Mobile Marketing, Social Media Marketing
(Facebook, YouTube), e-Commerce

HOW TO MAKE A MARKETING PLAN?

Marketing Plan: it is a document that summarizes what the marketer has learned about the marketplace
and indicates how the firm plans to reach its marketing objectives. It is a collection of tactical guidelines for
the marketer.
Contents of a Marketing Plan
Following are the sections of a marketing plan, that are arrived at, after thorough external market research
and internal probing of capabilities:
The document helps the company to arrive at a clear target market, target segment and brand positioning
plan, which could then be implemented based on different factors influencing feasibility and demand in the
market.
Evaluating a Marketing Plan: The 4 criteria for evaluation are- simplicity, completeness, specificity and
realism.

Marketing Plan vs Business Plan:
MARKETING PLAN BUSINESS PLAN

• An integral part of business plan • Road map for the entire
organization over time.
• Focuses on all marketing activities • Focuses on all key activities such as
for a specific time period (one or R&D, operations, manufacturing,
more years) financial besides marketing.
• Standalone document that needs to • Should be updated on regular basis
be managed on a short-term basis to help management meet greater
to assess whether the venture is organizational goals
meeting its goal and objectives
PURCHASE FUNNEL
• The purchase / purchasing funnel is a model which describes the theoretical customer journey from
the moment of first contact with your brand to the ultimate goal of a purchase.
• This model is important when marketing your business as it provides a method of understanding and
tracking the behavior of an average customer throughout the sales process. This can help with the
following:
• Planning marketing campaigns

• Highlighting areas in order to improve your conversion rate (from potential to actual customers)
• Evolving the sales process
• Designing customer relationship management(CRM) System

MODELS OF CONSUMER RESPONSES

• Micromodels of marketing communication concentrate on consumer’s specific responses to
communication.
• All these models assume the buyer passes through cognitive, affective and behavioral stages.
• Moving from step to step in these models, one loses some percent of prospects. Analyzing this
structure helps one understand the root cause of an underperforming communication
(advertising/marketing) campaign.
AIDA MODEL
• AIDA is an acronym used in marketing and advertising that describes a common list of events that
may occur when a consumer engages with an advertisement.

OTHER MODELS
HIERARCHY-OF-EFFECTS MODEL INNOVATION-ADOPTION MODEL
COMMUNICATIONS MODEL

DIFFUSION OF INNOVATION CURVE

Innovation diffusion process (Everett Rodgers): spread of new ideas from source of invention or creation to
its ultimate users or adopters.
The curve is the graphical representation illustrating this concept.
Adoption of a new idea, behaviour or product does not happen simultaneously in a social system, but rather
it is a process whereby some people are more suited to adopt innovation than others. Research has shown
that people who adopt innovation early have different characteristics to those who adopt innovation later
on- they have different motives for adopting or resisting. When selling an innovation to various target
markets, it is important to understand the characteristics of each of them.
Conceptual definition Character traits

INNOVATORS First to try the innovation; in return for low Risk taking,
(2.5%) prices, happy to conduct testing and report on venturesome, tech
early weaknesses enthusiasts
Message: “Be the first to try …”
EARLY ADOPTERS Opinion leaders; carefully search for new Embrace change
(13.5%) technologies that can give them dramatic opportunities
competitive advantage; less price sensitive; maturely; leaders
willing to adopt if given personalised solution and
good service support
EARLY MAJORITY Adopt new technology when benefits have been Pragmatists
(34%) proven and a lot of adoption has already taken
place. Form the mainstream market; adopt
before the average person
Message: “10,000 people have tried it. Have
you?”

LATE MAJORITY Technology shy, price sensitive; late in adopting Sceptical,

(34%) the innovation Conservatives, risk
averse
LAGGARDS Resist innovation until status quo is no longer Tradition-bound
(16%) defensible; hardest to convince
CUSTOMER LIFETIME VALUE

Customer Lifetime Value is the projected revenue a customer will realise during his/her lifetime after
deducting the costs.
With a CLV calculation, you’re learning, in essence, what your average customer is “worth” to your
company. It is useful metric used by marketing managers especially at a time of acquiring a customer.
Ideally, lifetime value should be greater than the cost of acquiring a customer. Some also call it a break-
even point.
Conceptually, this is what it means:
The basic formula for calculating CLTV is the following:
(Average Order Value) x (Number of Repeat Sales) x (Average Retention Time)
For example, let's say you run a Health Club where customers pay Rs 1000 per month and the average time
that a person remains a customer in your club is 3 years. Then the lifetime value of each customer is
(according to the formula above):
Rs 1,000 per month x 12 months x 3 years = Rs 36,000. This means each customer is worth a lifetime value
of Rs 36,000.
Once we calculate CLTV we know how much the company can spend on paid advertising such as Facebook
ads, YouTube ads, Google Adwords etc. in order to acquire a new customer.
CLV helps you make important business decisions about sales, marketing, product development, and
customer support. For example:

• Marketing: How much should I spend to acquire a customer?

• Product: How can I offer products and services tailored for my best customers?
• Customer Support: How much should I spend to service and retain a customer?
• Sales: What types of customers should sales reps spend the most time on trying to acquire?

AD ANALYSIS
THE CLASSICS
Humara Bajaj Ad 1989
This iconic ad in 1989 reflected the pride that Indians took in the name of „Bajaj‟ which was synonymous
with their sole vehicle of dreams: a scooter. In that era, marketers didn’t have the hair splitting challenge of
selling a diverse product line under one name and consumers were willing to wait up till five years for a
scooter.
The fact that Bajaj is now positioned as second in the motorcycle business and has exited the scooter
market is a sign of a change in the power equation between the consumer and the manufacturers.
Traditionally, the automobile industry has relied heavily on the corporate names to build reputations basis
the country of origin, its inventor & patents. The focus of Bajaj in the ad therefore was on “Bharat” and a
new invention hitherto unseen in the Indian market.
The ad showed people in different parts of the country but all of them were using the Bajaj Scooter. The
ad was concentrated on the Indian-ness aspect like the scene in which the new bike in garlanded.
The slogan “Buland Bharat ki Buland Tasveer” exemplifies the pride and glory of Indians that is associated
with riding a Bajaj scooter.
The `Hamara Bajaj‟ ad was able to capture the joy ride of a quintessential Indian middle class family to its
finest details- The father driving the scooter with utmost concentration negotiating the traffic and also
doing the `Great Indian Balancing trick‟ on the scooter along with three other members of his family. The
younger kid would be standing on the front with the mother clad in a sari sitting on one side of the scooter
clinging on to the Stepney tire while the elder kid would be sandwiched between the father and mother.
Thus the idea which was conveyed through the ad was that Bajaj is an integral part of the family and also
stood as a symbol of the unity in the Indian families. It was positioned as `Hamara Bajaj‟ which literally
means `Our Bajaj‟ thus further resonating its position as a family vehicle.
The vehicle was not particularly appealing to look at but it served the need of commutation very well for
the Indian families and it was apt for the Indian roads. Its durability was also one of the best available and
there was a notion that any problem would be solved by tilting the vehicle sideways. A popular joke - “The

Indian rocket did not fire. What to do? Just tilt it for a second.” – Only helped to reinforce the hold of this
vehicle on the Indian mind.
Humara Bajaj Ad 2001

In the next instalment of the Humara Bajaj ad which was aired at the start of the 21st century, focused on
the change in the society but the stronghold of core fundamental values the Indians possessed.
Unlike the previous ad, this ad showed a plethora of Bajaj products that were in market. Each bike had a
different consumer and this was aptly represented in the ad. People of different age group, background
and locations are shown depicting India as a whole.
The core of the ad revolved around the fact that although India has modernized and entered into the 21st
century, the core values that bind the country together are still intact. The music in the ad is an example
of that. Though the music has a more modern feel, the lyrics are the same as the ones used in 1989 ad.
The whole ad has dynamism incorporated in it. In every scene people are shown exploring new places, on
the move. This reflects the brand which has been more in the technology advancement and innovation
phase.
Cadbury Dairy Milk

The real taste of Life during the 80s Cadbury got stuck in a mind-set trap, where it was perceived as
something meant for the kids, something which was seen as an indulgent product and something which
wasn’t meant for the adults. This led to Brand Stagnation and what was required was to break free of this
mould and establish itself as something which could be enjoyed by people across age barriers.
The Challenge Chocolates were perceived as a western concept, more on the indulgent side. It was seen
as a manifestation of parental affection for their children. What was required was to break the shackles in
a place where opinions and mind-sets are as myriad as the country itself.
Surveys revealed that chocolate and especially Cadbury was associated with joyous and carefree
moments, and what was required was to blend these moments with those in the real life. The dawning of
liberalization in the country also meant that the masses were yearning to break free from their shackles
where the expression of one’s feelings was not considered taboo anymore.
It is in this background that the real taste of India advertisements was created for Cadbury. The ad shows
a cricket match in action with a boundary required of the last ball to win the match and for the batsman

to get his century. The batsman hits the last ball in the air as the crowd watches with bated breath, the
fielder gets underneath the ball, a young lady in the galleries prays frantically for him to miss the ball.
Much to the delight of the fans and the lady the balls sails over the boundary rope.
As soon as that happens she jumps out on the ground and starts jiving to the “tune kuch khaas hai zindagi
mein kya swaad hai zindagi ka”. With this one ad Shimone (the jiving lady) danced her place in the hearts
of millions of Indians, while the bank accounts of CDM started filling in riding on the incumbent sales. The
ad launched CDM as a brand for both the kids and the adults, something that could be savoured by people
across age barriers.
The results today India is the second largest market for CDM in the world, the success of CDM in India has
become textbook matter for budding adverts to draw lessons from.
Cadbury has been able to establish itself as one of the most lovable and recognized brands in India despite
of its distinct foreign feel. Ads are said to be the one of the most powerful mediums influencing the sales
of a brand after the quality and in the case of CDM it has been proved true beyond doubt. These ads are a
tribute to the joys of life; to the cherishing of precious moments of happiness and carefree gay abandon,
moments we all carve for in our lives.
Fevicol
Fevicol, the flagship product of Pidilite is a case in point. Consider this for starters during the marriage the
pundit recites the mantra.... ~ Yeh Fevicol Ka Mazbooth Jod Hai Tootega Nahi or for that matter Cricket hi
to hai desh ka Fevicol.
The Idea of all the Fevicol adverts is very simple and straightforward, Fevicol aise jod lagaye acche se accha
na tod paaye which is Fevicol binds so good that no one can break it. I remember seeing a wonderful print
advert of Fevicol, the god of death Yama is trying to pull out life from a person whose ordained time has
come, but is unable to do so, the reason, the body is lying next to a tin of Fevicol.

And the best thing is the tagline which says Fevicol aise jod lagaye yam raj bhi tod na paaye. The theme
and the idea have been brilliantly blended in all the Fevicol ads and they have been woven in a simple yet
very effective way of storytelling. The adverts transcend the barriers of geographies and language et al as
the viewer can relate to it without any problems of deciphering the language being spoken or the settings
of the adverts.
The overcrowded rickety bus on a bumpy road with people precariously perched from every nook and
corner of the bus, has no dialogues or anything just Fevicol advertised on the back of the bus saying Fevicol
ka jodh hai, tutuga, chootega nahi or it’s the bond of Fevicol won’t break and it won’t separate.
The ad series of Fevicol have always had something innovative and comical about them, this gives them a
high repeat value and even when they are shown again and again they don’t seem to suffer from the so
called Fatigue Factor in the world of advertising.
Be it the pakde rehna ads which has carpenters working in their shop while a movie is playing on the TV
showing a couple hanging perilously from a rope, with a can of Fevicol kept on top of the TV, an amused
carpenter looks at the can and then at the couple, while the heroine keeps shouting pakde rehna chodna
nahi, as the carpenter picks up the can, the couple falls down.
The adverts have always essayed the costumer insights and what they feel about the product. For instance,
what any prospective buyer would look for in any adhesive, something which gels so good that no one can
dare think of breaking or separating it and that’s precisely which all the ads talk about.

Recent Ads
1. Vodafone #MakeMostOfNow
Summary: The campaign shows an old couple on a “second
honeymoon” and experiencing life by embracing the ways of
the millennials. Helping them through the journey is
Vodafone that always keeps them connected.
Purpose: To promote Vodafone SuperNet 4G. The brand

aims to bring alive the benefits of this Data Strong Network
through slice-of-life moments.
TG: Older audience; upper-middle class households in urban

areas.
Vodafone’s research and consumer insights indicate that
Pathos: A couple enjoying a “honeymoon” at mobile internet is increasingly being used by customers
such an old age and constantly keeping in touch across age groups for multiple applications like live
with family is easy to identify with for a viewer streaming, maps, movie download, group video calls, etc.
of any age group. It evokes a feeling of affection
for the old couple as one can easily see one’s
parents going through the same experience. Tag line: Make the most of now
Advertisement Link
2. Nescafe ad – It all starts

Purpose: Increasing consumption of coffee by telling
consumers to celebrate and enjoy every little moment and
relying on coffee to rejuvenate and support you
• Starts with Rishi at a stand-up comedy night, who is
telling the audience about his struggles and journey
till here
• He motivates them to continue trying and explains
the importance of coffee in the whole journey as a
companion
Target Population: 18-35 age bracket. It is targeting a
generation with personal dreams and aspirations and telling
them that no dream is impossible to achieve. At the heart of
it, the ad is telling us that Nescafe will be your support and
energiser in the whole journey
Pathos: This advertisement strikes an emotional connect. It
inspires and motivates people to keep trying and never give
up. Their choice of profession is trendy, aspirational and fun.
Tag line: It all starts
Advertisement Link

3. Imperial Blue – Men will be Men

Summary:
1. Man offers an aisle seat to a pretty looking girl, turns out
she was looking for a seat for her grandfather
2. Two friends discussing how to make up for forgetting their
wedding anniversary
Purpose: Surrogate Marketing for Imperial blue whiskey
brand, tries to bring out typical situations in which men
usually drink, or situations where men exhibit typical
behaviour
Target Population: 25-40 age bracket, good chunk of the
target audience is married, resides in Tier I, II & III cities, and
is amongst the working class
Pathos: Men crave for attention from the opposite sex,
want to appear cool in front of friends and can go the extra
mile for the same, sometimes embarrassing themselves in
the process. This evokes laughter, creating an emotional
engagement.
Tag line: Men will be Men
Link: Advertisement Link
4. OLX – 6 months break-up challenge

Purpose: OLX launched its brand campaign which had a
series of ads that had gone live on television, digital, radio,
social media, and out-of-home advertising. Titled as the ‘6
Months Break-Up Challenge’, the campaign urged people
to sell pre-owned goods that they haven’t used for at least
6 months.
Target group is youth and ad has been conceived keeping
in mind the popular culture, and the evolving vocabulary
of the youth. At the heart of this campaign is the broader
consumer truth around the increasing trend of impulse
Pathos: In this campaign, they continued with
buying, especially of fashion accessories and hobby-
the journey they had started in their last
centric items and to unlock the potential of these pre-
campaign, where they pitched the brand in a
owned items by looking inside their homes.
cooler, younger, and trendier way to the youth.
Benefit/Feature: The TVC campaign focuses on both the Through this campaign they made people
buyer and the seller, highlighting the ease and the realize that everyone had something or the
convenience of the hyper simple buying and selling other lying around that they were not using on
experience in a trusted environment. a regular basis. They wanted to seed the
Tag line: 6 months Break-Up challenge behaviour of selling these lesser used goods
Advertisement Link rather than letting them become a blind spot.
The creative idea was to encourage the
audience to take up the 6 months’ challenge,
where they could identify things that they had
not engaged within 6 months, and then “break
up” with those things by selling them on OLX."

CANNES LIONS 2017 WINNERS FROM INDIA

QUESTIONS FROM THE PAST

These are some of the questions that were asked during previous years’ marketing interviews at MDI.
The questions have been classified into three types: Concept-related questions, Industry/Trend related questions and
Application questions.
General Pointers for Marketing Interviews

• Read up about the company and analyses their marketing strategies and campaigns
• See how you can fit marketing concepts to the company and its brands/products
• Prepare convincing answers for questions like ‘Why Sales?’ and ‘Why Marketing?’
• Read up on the latest trends and marketing techniques involved in the company’s industry
Concept-based questions
These are general marketing concepts found in Kotler and available through other online sources. Companies test your
basic marketing knowledge through these questions.
• What is the difference between Sales and Marketing? (Godrej Consumers Products Ltd)
• Explain STP through examples. (Snapdeal)
• Positioning vs Proposition. (BCCL)
• 4 Ps of Marketing? (Sony Pictures)
• What is porter's five forces model? (Tata Motors)
• What is Product Lifecycle? (Philips)
• What is Go to Market Strategy? (Snapdeal)
• What are the key characteristics of B2B marketing? (Asian Paints)
• B2B Vs B2C? (Danaher, Lenovo)
• What are ATL, BTL and TTL? (Lenovo)
• What is the distribution channel and role of technology in distribution? (BCCL)
• FMCG vs FMCD? (Pidilite)
• What is Modern Trade? Challenges in Modern Trade? (Loreal)
• What is Brand management? (DCM Sriram)
• Favorite Marketing Campaign. (BCCL)
Industry specific and latest Trends related questions

These questions are specific to the company’s industry and the latest trends involved in the sector. These questions
can be answered by reading up on the how the industry works, following the latest trends and understanding how
new developments impact the companies in the industry
• Tell about latest ads, captions, marketing strategy, difference in marketing strategies of companies from same
industry. (ITC)
• How will you increase the monthly sale of cards from 8000 to 20000?(Standard Chartered)
• What’s wrong with the logo of Minute Maid? (Coca Cola)
• What should Snapdeal do to increase its market share? (Snapdeal)

• What is the business model of Snapdeal? (Snapdeal)

• Questions on digital marketing like bidding strategy, customer lifetime value, customer acquisition cost.
(Snapdeal)
• Sketch an entire marketing plan for a residential unit that GPL is launching .(GPL)
• Google AdWords and Marketing at Google (Google)
• Where will a certain product (Garnier Men Facewash) be placed in the Modern Trade store? (Loreal)
• How do you add value to a product if you are simply reselling it? (Agro Tech Food Ltd)
• Compare brand positioning of Nivea and HUL, Nike and Adidas. (Nivea)
• What is digital marketing? Devise a digital marketing strategy for one of Loreal's products. (Loreal)
• Google AdWords and Marketing at Google (Google)
• Rural marketing strategies for Telecom companies? (Vodafone)
• Recent social media marketing campaigns by companies? (Raymond)
• Conventional Marketing vs. Digital Marketing? (Axis Bank, Emami)
• What is the product portfolio of banks? (Axis Bank)
• Which are the 2 best and the 2 worst FMCG companies according to you? Give reasoning (Reckitt Benckiser)
Application of Concepts/Situation based questions

These questions require the application of marketing concepts learnt to real life scenarios, mostly for the company
that is interviewing you. Hence, try applying a few concepts to the company’s marketing strategies and its products
before going into the interview. Think about the industry and the situations that could arise as a result of the
developments in the industry. Make sure relevant examples are provided for these questions.
• Design a marketing campaign for a specific brand (Asian Paints)

• Sell the Bisleri pet bottle to us (Asian Paints)
• SWOT analysis of home state (Aviva)
• STP of any brand (Aviva, ITC)
• Give recommendation to improve any product of ITC. (ITC)
• What should be the Digital Marketing strategy for Benetton? (Benetton)
• How is selling Castrol different from, say, selling Coke? (Castrol)
• How will you sell a Maruti to someone who is a lifetime Honda buyer? (Castrol)
• What will you do to strengthen the positioning of Castrol? (Castrol)
• Suggest marketing strategy for Cinepolis? (Cinepolis)
• STP of Fogg deodorant? (Dabur)
• Design a new product for Dabur and position it (Dabur)
• Design a laptop selling web page that would give the best customer experience? (eBay)
• How would you select a dealer for Michelin? (Michelin)
• Online marketing strategies for ShopClues? (Shopclues)
• Design the market launch strategy for a new product to be sold by Snapdeal? (Snapdeal)
• SWOT analysis for Snapdeal? (Snapdeal)
• Apply Maslow's hierarchy of needs for automobile industry? (Tata Motors)
• What is the Positioning of Tata Nano? (Tata Motors)

• Which category of products of our company according to you is not doing well? Why? (Flipkart)
• Suppose we make you the manager for XYZ category (answered above). What will you do to boost the sales?
• Suppose you have to deal with the vendors for XYZ category. What are the things you will negotiate with him?
• Estimate budget of marketing campaign of a company (Group M)
• Sensitivity of Indian customers depending on the region they live in (Tetrapack)
• Suppose a company comes to GroupM with a luxury sports cycle. Now you are given the responsibility to lead
this project and you are required to select your own team of 3 people. Which 3 persons/what kind of 3 people
would you hire? Why? (GroupM)
• Form a story out of 10 words (like 4g, john, executive, sales, Vodafone) (Vodafone)
• If you were to market yourself as a student of MDI, how would you do it? Your tagline? (Akzo Nobel)
• Which of the 4Ps are the most important?
• Automobile market scenario (Mahindra)
• Red and Blue Ocean strategy (PVM)
• Give examples of brand expansion and extension. Better option in a given condition? (DCM Sriram)
• How will you conduct a survey? Give examples of surveys by different companies. (DCM Sriram)
• How is a village different from Delhi in terms of marketing channels for telecom? (Idea)
• If you have to bring innovation into a loss-incurring hair oil, how would you go about it? How do you apply
Porter’s 5 forces model on the same? (ATFL)
• What is a brand? Name two brands without which you cannot live? (ATFL)
• Branding strategy for Navratan oil in urban area? (Emami)
These questions were some of the frequently asked ones in the last two years and you can see that some of them
are often repeated. Having unique examples to these questions is strongly advised, so that one can differentiate
their answers from the standard examples others might choose.

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May the Five Forces be With You!

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PURCHASE FUNNEL ..........................................................................................................................................56

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DIMENSION SALES MARKETING

Focuses on the needs of the Focuses on the needs of the buyer

Focuses on making products Focuses on developing demands among

Management is sales volume Management is profit oriented

Planning is short-run — Planning is long- run — oriented in

Depends on marketing to Depends on sales to close leads

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NEEDS, WANTS, DEMANDS, AND DESIRES

Example: I need some food. I feel hungry.

Given below are the different types of needs:

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Example: I want to have a pizza.

Demands and Desires:

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SEGMENTATION, TARGETING AND POSITIONING

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Demographic Geographic – Psychographic – Behavioral – Loyalty to

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• It should be desired by the customer

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For a product marketing mix has 4 Ps

Place - Distribution Channels

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Consumer-Perceived Value (CPV)

Customer-Perceived Value = Total Customer Benefit – Total Customer Cost

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For Rural Areas we can use 4 A’s

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To focus more on customer’s wants and needs we can use 4 Cs

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PUSH VS PULL MARKET

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PRODUCT MIX – LENGTH, BREDTH

Product Line Breadth

Product Line Depth

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Length of the Product Mix

Product Mix Consistency

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PRODUCT LIFE CYCLE

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Desktop computers are currently in the decline stage with a decreasing

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DHL vs FEDEX SAMSUNG vs APPLE

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Old Spice vs AXE

Axe guerrilla marketing showing girls running after a man

Guerrilla Marketing by GOT through print advertising

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