Glossary of Marketing Terminology

7 O’S MODEL OF STUDY OF CONSUMER BEHAVIORAre:Occupants- PeopleObjects- What ProductsObjectives- WhyOccasions – WhenOrganizations- Who all are involved,Operations- How do they buy (Cash/ Credit )Outlet- From where to buy

80/20 RULE It is a common rule of thumb in business; e.g., "80% of your sales come from 20% of your clients." Joseph M. Juran

ACHIEVERS Achievers are successful, goal-oriented people who focus on

career and family. They favor premium products that demonstrate success to their peers. It is a type of psychographic segmentation.

Phillip Kotler

Achievers have high resources and are status oriented.i) Seek recognition and self definition through achievements at work and school.ii) Value predictability and stability.iii) Deeply committed to work and family.iv) Social lives are centered around family church and career.v) Image is important to them.vi) They favor established prestige products and products that demonstrate success to their peers.vii) 73% married, 39% men, 77% college educated.viii) Income around $200,000. Dr. Jill Novak

These consumers are the high-resource group of those who are motivated by achievement. They are successful work-oriented people who get their satisfaction from their jobs and families. They are politically conservative and respect authority and the status quo. They favor established products and services that

show off their success to their peers. VALS Framework-USA

Image is important to Achievers; they favor established, productive products that demonstrate success to their peers. Because of their busy lives they are often interested in a variety of time saving devices. Bernie Hamilton-USA

Eg: BMW,Blackberry

ACCESSIBILITY Accessibility is the effective segmentation criteria, it means that

the segment be effectively reached and served. Phillip Kotler

To minimize promotion and sales expense you may want to target urban rather than rural or local rather than national prospects. Because the individual is more difficult to reach you may want to segment by urban versus rural, train commuters, people who read Wall Street Journal, etc. Business Resource Software

ACTION CAMPAIGNS Action Campaign is:

1. Attract people of mass immunization.2. Motivate people to say yes on a certain issue. Philip

KotlerEg: Treatment Action Campaign is a South African AIDS activist organization

ADVERTISING Any paid form of non personal presentation and promotion of

ideas, goods and services by an undefined sponsor. Philip Kotler

Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas, or services. Stephen J. Eskilson

Advertising includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. J. Walter Thompson

The activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media. Oxford Dictionary

Eg: Nike-Just do it.

ADVERTORIALS Print ads that offer editorial content that reflects favorably on the

brand and resemble newspaper or magazine content. Philip Kotler

An advertorial is an advertisement written in the form of an objective article, and presented in a printed publication—usually designed to look like a legitimate and independent news story.

An advertorial or infomercial is an advertisement designed to simulate editorial content, while at the same time offering valid information to your prospective clients.

An advertisement promoting the interests or opinions of a corporate sponsor, often presented in such a way as to resemble an editorial. Oxford Dictionary

 

AFFILIATE MARKETING Affiliate marketing is a marketing practice in which a business

rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts.

Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods.

Affiliate Marketing is an Internet-based business where affiliates are compensated for each sale brought about by there affiliate marketing efforts.

AGE AND LIFE CYCLE STAGES

Consumer’s wants and abilities change with age. Therefore, age and life cycle stages are important variables to define segment. Philip Kotler

Classification of different age groups of a target market on the basis of their life cycle stages, because consumer needs and desires change with age. The four basic 'Age and life cycle' categories are child, young adult, adult, and older adult.

Marketing concept that utilizes different marketing approaches for different age categories or different life-cycle segments of the population.

Age and life-cycle segmentation The process of dividing the consumer market into different age and life-cycle groups.

Eg: a vitamin manufacturer may offer a children's formula for ages 4-12, a vitamin specially formulated for young teenagers, an adult version for adult men and women, and a high-energy formula for people over age 50. Some marketers will offer a product designed particularly for one specific segment of the age cycle, such as a shampoo developed for women over 40 to help with age-related hair changes.

ATTITUDES A person’s enduring favorable or unfavorable evaluation,

emotional feeling, and action tendencies toward some object or idea. Attitude towards the product are: enthusiastic, positive, indifferent, negative and hostile.

An attitude is a hypothetical construct that represents an individual's degree of like or dislike for an item.

Attitudes are generally positive or negative views of a person, place, thing, or event—this is often referred to as the attitude object.

Attitudes are judgments. Attitudes are usually defined as a disposition or tendency to

respond positively or negatively towards a certain thing (idea, object, person, situation). They encompass, or are closely related to, our opinions and beliefs and are based upon our experiences.Eg: A person’s attitude towards green product ( Eco-friendly product).

ATTRIBUTE POSITIONING

The brand has a unique attribute i.e., Fastest, oldest, etc. Attribute positioning is usually a weak positioning as it does not explain the benefit to the customer.

o Arun Kottoli Attribute positioning, the message highlights one or two of

the attributes of the product. Philip Kotler

Eg: Bajaj Discover positions itself on its milage. 100 km in 1 litre.BABY BOOMERS

baby boomer and older customers (born between 1948-1965) are the single largest consumer group in America, and they are the wealthiest, best educated and most sophisticated of purchasers. With more disposable income than any population in America, they are, in fact, the New Customer Majority.

Marketing and sales, for baby boomers, must integrate both empathy and vulnerability (honesty and openness) into marketing messages. These two attributes are necessary to build trust, and are essential to optimal results in marketing and sales communications.

Eight Progressive Changes in How Baby Boomer’s Minds Process Information:

Less reliance on reason to determine what is of interest, and more on intuition (which is cued by emotional responses).

Implications: identify and employ images that promote strong positive emotional responses; relationship building must precede presentation of company and product; relationship potentialities are primarily emotionally inferred (“gut feelings”) – rather than rationally deduced.

First impressions (which are always emotionally based) are more durable and more difficult to reverse than for younger adults.

Implications: be sensitive to images that can stimulate negative first impressions. It is probable that the strongest sources of negative impressions are images that conflict with idealized image of self, especially with respect to autonomy and sense of personal validity.

After a matter qualifies for interest and further attention, baby boomers tend to want more information than do younger consumers.

Implications: manage the transaction continuum so that emotional cues are present when most advantageous, then shift to “hard” or objective information when most advantageous; information content must be no greater than what the baby boomer wants at a given point in time.

Decreasing speed in rational processing of objective information.

Implications: Deliver objective information (e.g., product benefits and features, technical information, etc.) at a slow to moderate pace. Avoid “jump cuts” and incomplete sentences.

More resistant to absolute propositions. Implications: present information on company and

products in a qualified, even deferential manner. More sensitive to metaphorical meanings, nuances and

subtleties. Implications: take advantage of greater sensitivity to

subtlety to expand the content of the message, especially in terms of metavalues – values that transcend the generic value of the service and expand its perceived attractiveness. Nonverbal symbols are effective in accomplishing this.

More receptive to narrative-styled presentations of information, less responsive to information presented in expository style.

Implications: Make greater use of story-telling techniques to get information across. Stories are generally quicker to arouse emotions than straight-forward propositions about a product’s features. Think Hallmark Cards – they surpass most in using stories to present products. Resistance to emotionally neutral information (mainly processed in the left hemisphere of the brain) increases in midlife. Storytelling has become an important part of market strategy. Whoever tells the best story and tells it best will most likely win.

Perceptions are more holistic.

Implications: Project an interest in the “whole” person, not just the facet that might need a particular product or service; also, avoid depicting representatives of target markets in flat, single dimension contexts (e.g., simply showing consumers using or talking about the product without reference to a larger context).

Understanding how a baby boomer’s brain and mind processes information is key to effective communications. If an ad, TV or radio spot, web site or sales presentation fails to connect with a baby boomer’s idealized image of self, it is more likely to be ignored.

BACKWARD INVENTION

Reintroducing earlier product forms that can be well adapted to foreign country’s needs.

Backward Invention is a product strategy in international marketing in which a company produces a less complex version of its domestic product for developing and less-developed countries.

Some countries might have a special need and this means that you will have to develop a new product for their special need. For instance, there may be a need for pure water in certain countries and you invent a machine that purifies water.

A product strategy in international marketing in which a company produces a less complex version of its domestic product for developing and less-developed countries.

National Cash Register Company reintroduced its crank-operated cash register at a lower cost for South American and African markets. This is an example of backward invention.

Eg: Mcdonald’s mascot Uncle Ronald’s face is white in all the countries except in Japan and other east Asian countries. There it is yellow and Ronald is also known as Uncle Suk-Suk.

BALANCED INCOMPLETE BLOCK DESIGN (BIBD)

The Balanced Incomplete Block Design (BIBD) is a well studied experimental design that has various desirable features from a statistical perspective.

This is a statistical tool, used to verify are assumptions and observations and also to obtain new results.

BIBD in marketing is: In some randomized block designs, it may not be possible

to apply all treatments in every block. For example, which type of marketing statergy to use for a

particular target market. The question is: Which tips are to be tested on the first

coupon, which on the second and so on, if information is desired on all four tips ?

A solution to this problem is: to use a balanced incomplete block design.

An incomplete block design is simply one in which there are more treatments than can be put in a single block.

A balanced incomplete block design is an incomplete block design in which every pair of treatments occurs the same number of times in the experiment.

The number of blocks necessary for balancing will depend on the number of treatments that can be run in a single block.

BARRIERS: Majorly, two types of barriers:

Entry barrier Exit Barrier from the market.

Entry Barrier: The existence of high start-up costs or other obstacles that

prevent new competitors from easily entering an industry or area of business. 

Barriers to entry benefit existing companies already operating in an industry because they protect an established company's revenues and profits from being whittled away by new competitors. 

Although it goes against the practice of free trade, barriers of entry do exist, even globally. Protectionism is one that comes to mind. Many governments impose restrictive regulations

such as high tariffs and quotas in order to protect local businesses from foreign takeover.

Types of entry barrier and methods to overcome them:o High Capital Requirements High capital

requirements are inherent in start-up businesses. Financial resources can be a massive barrier especially if a company is reliant on expensive raw material. Again, financial planning is of the essence here. Small companies have to learn to work within their means. Financing for small-scaled businesses is, however, available, but is incumbent on a strong business plan with a reasonable but promising financial forecasts. Applying for a loan from a bank / corporation / consortium is possible but small companies have to ensure that they factor in the costs in repayment into their financial forecasts.

o High Switching Costs and Product Differentiation

o To increase customer sales, small-businesses have to win over consumers from exisitng providers. This can be expensive for customers as they may already be comfortable with their current facilities and fees. Similarly, high-scaled branding and advertising that translates into product differentiation will entice consumers to remain with their larger providers.

o The way around here is to create a niche (pronounced neesh, not nitch). A niche target market is a specific group of consumers who have a specific requirement. Small-businesses have to find their own niche product or service that will be able to cater to this group of people. Small companies are generally unable to reach out to the masses, the same way established companies are able to do - so they should concentrate on building rapport with their own niche target markets to boost their presence in the market. This allows smaller companies to demonstrate their own expertise and product branding.

o Lack of Access to Distribution Channels

o Small businesses have low bargaining power and usually begin with shaky business networks. Because of this, it is easy to lose out on business opportunities to the big corporations in the market.

o There are ways to overcome this hurdle. One way would also be to concentrate on a niche product or service. This would help eliminate the main competition with the big players in the market. Alternatively, small companies can find ways to "complement" the networking channels (with their niche products and services) to increase bargaining presence in the industry.

o Another popular way is the use of Internet marketing. The Internet is a potent tool in today's business world, especially where distribution channels are concerned. Networking and marketing via the net is cost-efficient, fairly non-technical and makes small business owners accessible to billions. If the Internet marketing strategy jives with the business model, small-firm owners may quickly work their way up to larger distribution channels.

Exit Barrier:

Divestment can be an appropriate and profitable strategy, but the decision to divest is complicated by the presence of several barriers. 

The portions of the capital investment that cannot be recovered, sunk costs, create a barrier to exit

BEHAVIORAL TARGETING

Behavioral Targeting is a technique used advertisers to increase the effectiveness of their campaigns.

Behavioral marketing can be used on its own or in conjunction with other forms of targeting based on factors like geography, demographics or the surrounding content.

Eg: Behavioral targeting uses information collected on an individual's web-browsing behavior, such as the pages they have visited or the searches they have made, to select which advertisements to display to that individual. Practitioners believe this helps them deliver their online advertisements to the users who are most likely to be interested.

Behavioral Targeting allows site owners or ad networks to display content more relevant to the interests of the individual viewing the page. On the theory that properly targeted ads will fetch more consumer interest, the seller may ask for a premium for these over random advertising or ads based on the context of a site.

BEHAVIORIST SEGMENTATION

Behavioral segmentation, marketers divide group on the basis of their knowledge of, attitude towards, use of, or response to the product. It is divided into 7 categories:

1. Occasions: Regular, Special2. Benefits: Quality, service, economy, speed3. User status: Non-user, Ex-User, potential-user, First-time

user, regular user4. Usage Rate: Light, Medium, Heavy5. Loyalty status: None, medium, strong, absolute6. Readiness stage: Unaware, aware, interested, informed,

desirous, intending to buy7. Attitude towards product: Enthusiastic, positive, indifferent,

negative, hostile.

Eg: Cadbury Celebrations, Bajaj Discover, Godrej Hair dye, Fair & Lovely , Sny Electrical appliances, MTR Ready to eat food.

BENEFIT POSITIONING

A positioning option that features a distinctive customer benefit. Positioning is the process of designing a product or service so that it can occupy a distinct and valued place in the target consumer's mind, and then communicating this distinctiveness through advertising. The key themes or concepts an organization features for communicating the distinctiveness of its product or service to the target segment.

Benefit positioning can be used if the brand perceivably differs in its ability to deliver a specific benefit. The power of a benefit position will depend on how many people care about the benefit and how different the brand is in delivering it.

There are seven qualities that help to make a successful position:

1. Relevance

Positions that do not focus on benefits that are important to people or reflect the character of the product will fail. Often in their search for differentiation, marketers seize upon some attribute in their product which is different but in reality is of little concern to customers. This is a waste of time and money. The lonely Maytag repairman, who symbolizes reliability, is an example of a powerful position based on the quality built into the appliances.

2. Clarity

A position should be easy to communicate and quick to comprehend. Difficulty in either suggest that a position is to fuzzy to be of value to the brand. “We try harder because we are #2” established Avis as a major league competitor quickly and simply.

3. Distinctiveness

People have few needs that are unfulfilled, and they have many choices to fill the needs they have. If a brand’s position lacks distinctiveness it will be forced to compete on the bases of price or promotion; expensive strategies that will not build brand equity in the long term.

4. Coherence

Speak with one voice through all the elements of the marketing mix if you wish to create a strong position. If, for example, a brand that is positioned as premium quality and price appears in an end-aisle “sale” display, its quality image will suffer. The shipping cartons, freight pallets, envelope franking, packaging, advertising,

promotions, shelf displays etc. should all reflect and translate the brand’s position into the appropriate form for the media.

5. Commitment

Often people will get nervous when a strong position threatens to ignore or even alienate some segment of the population as a price of clearly communicating to the desired target. Once a position is adopted, it takes commitment to see it through, in the face of criticism and pot shots.

6. Patience

Crest has dominated its market for over thirty years. When it was first introduced positioned as a cavity fighter its share never rose above 13% for three years. The ADA approval was the key to launching the brand to over 40% of the market. Had P&G lost patience after two or three years, someone else would be enjoying the profits of this powerful brand position.

7. Courage

It goes without saying that adopting a strong brand position requires bravery. It is much easier to defend an appeal to everyone with a rather generic sales pitch. You must believe that the position makes strategic sense for the brand and then stick to your guns.

Adopting a strong position is not a passive act; rather it is a deliberate attempt to influence events. It requires ignoring certain business targets in favor of others, and if successful, will yield growth in sales and profits and a consumer franchise who believe that your brand has no adequate substitute, even if it costs more.

BRAINSTORMING

Brainstorming is a group creativity technique that was designed to generate a large number of ideas for the solution of a

problem." Brainstorming business ideas should be uncensored. No idea is dumb or impossible, and each person's contribution is equally valuable. ( Thinkertoys Michael Michalko )

Brainstorming technique for breaking out and generating

innovative business, product, or service ideas is to get all of the external senses involved. ( Thinkertoys Michael Michalko )

Brainstorming is a group problem-solving technique that is intended to help members develop innovative new approaches to a problem in an unthreatening environment. ( Thinkertoys Michael Michalko )

Idea-generating technique often used in advertising by a creative team to spark creativity. The team will gather in a group and throw out spontaneous ideas without evaluation until they hit upon something that may be useful. In this process nothing is too silly or farfetched to be suggested. The process helps to make the leap from the visualization of an idea to the concrete words and pictures that will actually form the basis of the advertising campaign. ( Thinkertoys Michael Michalko )

EXAMPLES

VODAFONE ZOO-ZOO Ads which ultimately established as a Brand is among the most creative ideas.

i-Phone launches by Apple Inc are based on several new technologies and concepts which is a result of various Brainstorming activities.

LCD & LED Televisions launched by Samsung is another example of Brainstorming activities used by Samsung

Yamaha-FZ 16 launched by Yamaha with broad tires at back in the segment of 150 cc is also an example of Brainstorming technique.

BRAND

An identifying symbol, words, or mark that distinguishes a product or company from its competitors. Usually brands are registered (trademarked) with a regulatory authority and so cannot be used freely by other parties. For many products and companies, branding is an essential part of marketing. (Aaker, David (1991), Managing Brand Equity.)

A brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed. A brand name is the name of the distinctive product, service, or concept. Branding is the process of creating and disseminating the brand name. Branding can be applied to the entire corporate identity as well as to individual product and service names. (Tom Peters)

The intangible sum of a product's attributes: its name, packaging, and price, its history, its reputation, and the way it's advertised. (David Ogilvy's )

Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: Customers, Staff, Partners, and Investors etc.

EXAMPLES

Heinz is a leading global food manufacturer with a very strong family brand. However, it also operates many well-known individual brand names. Examples include Farley’s (baby food), Linda McCartney Foods (vegetarian meals) and Weight Watcher’s Foods (diet/slimming meals and supplements).

Microsoft XP and Microsoft Office in personal computing software and Heinz Tomato Ketchup and Heinz Pet Foods

Mc Donald’s in India

BRAND AFFINITY

Brand Affinity is the likelihood to purchase a particular brand in a free choice situation. It needs to be validated through consumer behavior. (Neumeier, Marty )

brand’s affinity relationship can be understood and managed by focusing on three key aspects:

1. How well the product configuration delivers value – the customer relevant, tangible product attributes and of course the price being charged for them. 2. How well the service/experience has been delivered now and in the past.3. How well the brand reinforces the value proposition – its attitudinal, emotional and social relevancy linkages. (Dave Williams, President Loblaw Companies)

Brand Affinity includes various aspects of consumer like Ego , functional , Native , Empathy , Cosmopolitan , Emotional , Society and most important Association.

EXAMPLES

Heineken is renowned for being the first truly international Beer brand. The implication of Heineken is that it got affinity among consumers over the world

Benetton expressed the campaign featuring AIDS patients which can strengthen the Brand emotional affinity

BRAND AMBASSADOR

A promotional model is a person hired to drive consumer demand for a product, service, brand, or concept by directly interacting with potential consumers. A promotional model can be female or male, and typically is intended to be attractive in physical appearance

"a diplomat; a representative of an organization, institution or corporation that best portrays the product or service(Neumeier, Marty )

The brand ambassador is a marketing model that employs trusted, credible personalities to promote and give greater visibility to its brand products(Neumeier, Marty )

EXAMPLES

Toyota has roped in actor Aamir Khan as its Brand Ambassador for its utility vehicle Innova in India.

Accenture - Tiger Woods (Golfer) with the Aim of talking about precision.

Brittania - Rahul Dravid (Cricketer)

Santro - Shahrukh Khan (Bollywood Actor)

BUZZ OR STREET MARKETING

Buzz marketing is a viral marketing technique that attempts to make each encounter with a consumer appear to be a unique, spontaneous personal exchange of information instead of a

calculated marketing pitch choreographed by a professional advertiser (Lassar, W., B. Mittal and A. Sharma)

The buzz Marketing campaigns, simply referred at as BUZZ, is an expression tool used in a word-of-mouth marketing strategy or manner. The Buzz marketing is a type of publicity spread among customers and consumers in a positive society, causing an excitement and anticipation of the product or service(Lassar, W., B. Mittal and A. Sharma)

Buzz marketing is a marketing technique consisting, as its name suggests, of making a noise around a new product or offer. Similar to viral marketing, it differs from it in the control of the content, of the advertising message. (Lassar, W., B. Mittal and A. Sharma)

EXAMPLES

The Dojo of Pain program served to create buzz and generate awareness for the video game Red Steel, a launch title for the Nintendo Wii platform

BMW launched a series of eight high-cost, high-production short films released on BMW's website. The films were produced and directed by such acclaimed filmmakers as David Fincher and Guy Richie and starred actors such as Don Cheadle, Clive Owen, and even Madonna. Within the first four months of release, the films attracted over 11 million views and sent BMW sells up 12% in 2001 alone. The success of the BMW series has prompted many other car manufacturers such as Nissan to adopt a similar internet-based strategy.

BRAND AWARENESS

Extent to which a brand is recognized by potential customers, and is correctly associated with a particular product. Expressed usually as a percentage of target market, brand awareness is the primary

goal of advertising in the early months or years of a product's introduction. (Lassar, W., B. Mittal and A. Sharma)

Extent to which a brand is recognized by potential customers, and is correctly associated with a particular product. Expressed usually as a percentage of target market, brand awareness is the primary goal of advertising in the early months or years of a product's introduction.

Brand awareness is an important way of promoting commodity-related products. This is because for these products, there are very few factors that differentiate one product from its competitors. Therefore, the product that maintains the highest brand awareness compared to its competitors will usually get the most sales. (Neumeier, Marty )

EXAMPLES

NOKIA Brand awareness for its N-Series Mobiles

Dove Brand Awareness for Dove Shampoo to gain market share and reinforce market leadership position

BRAND EQUITY

Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name (Neumeier, Marty )

Brand equity valuation requires association of elements like changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand values. (Neumeier, Marty)

EXAMPLES

• The Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F". This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E".

• Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. Since 1992, his designs have incorporated the shiny, red-lacquered soles that have become his signature. Referring to the four consumer perception of brand equity, Louboutin fulfills all four factors. With shiny, red-lacquered soles and high stillettos that differentiate Louboutin from other posh and luxurious shoe brands, Louboutin has lured women all over the world who deemed themselves to be brand conscious consumers, wearing only and only high-end fashion brand shoes.

BRAND IMAGE

Impression in the consumers' mind of a brand's total personality (real and imaginary qualities and shortcomings). Brand image is developed over time through advertising campaigns with a consistent theme, and is authenticated through the consumers' direct experience

The perception that consumers have of a brand. Brand image is usually carefully developed by the brand owner through marketing campaigns or product positioning

The customer's net "out-take" from the brand. For users this is based on practical experience of the product or service concerned (informed impressions) and how well this meets expectations; for

non-users it is based almost entirely upon uninformed impressions, attitudes and beliefs.

EXAMPLES

Brand Image of Nike and ADIDAS by providing Sponsorship in various sports events.

Brand Image of Amul developed with the punch line that AMUL “The taste of India “.

Brand Image of VODAFONE by showing ads of Zoo-Zoo and Dog-Girl Ads and focusing on best customer service

BRAND LEVERAGING

1>Broadening a company's product range by introducing additional forms or types of products under a brand name which is already successful in another category. Also called Product Leveraging, Brand Extension and Franchise Extension.

2>A brand leveraging strategy uses the power of an existing brand name to support a company’s entry into a new, but related, product category. Brand leveraging communicates valuable product information to consumers about new products. Consumers enter retail outlets equipped with pre-existing knowledge of a brand’s level of quality and consistently relate this knowledge to new products carrying the familiar brand.

EXAMPLES

1>Bic is a strong brand name with years of experience in marketing low-cost disposable plastic products such as the Bic pen. Thus, Bic is positioned well to introduce products that

capitalize on these same basic strengths – products such as disposable razors and cigarette lighters.

2> The manufacturer of Mr. Coffee™ coffee makers used its brand name strength to launch Mr. Coffee™ brand coffee. While coffee machines and coffee beans are in different product categories, there is a strong enough correlation between the two items that the brand name has a powerful impact on consumers of both categories.

3>. Ralph Lauren's Polo brand successfully extended from clothing to home furnishings such as bedding and towels. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and hominess.

4> Virgin Group, which was initially a record label that has extended its brand successfully many times; from transportation (aeroplanes, trains) to games stores and video stores such a Virgin Megastores.

BRAND LOYALTY

1>Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors such as word of mouth advocacy.

2>Extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands.

3>When consumers become committed to your brand and make repeat purchases over time. Brand loyalty is a result of consumer behavior and is affected by a person’s preferences. Loyal customers will consistently purchase products from their preferred brands, regardless of convenience or price.

EXAMPLE

1>Harley Davidson, the motorcycle brand in the US, is an example of how passion among consumers has been instrumental in reflecting the loyalty to the brand.

2> Apple customers have the brand's logo tattooed onto their bodies.

3>In Finland, Nokia customers remained loyal to Nokia because they admired the design of the handsets or because of user- friendly menu system used by Nokia phones.

BRAND MANAGEMENT

1>Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity.

2>The process of maintaining, improving, and upholding a brand so that the name is associated with positive results. Brand management involves a number of important aspects such as cost, customer satisfaction, in-store presentation, and competition. Brand management is built on a marketing foundation, but focuses directly on the brand and how that brand can remain favorable to customers.

EXAMPLES

1>Coca-Cola has become a cliché of brand management. Before branding or even management emerged as disciplines, the Atlanta-based company was already spending over US$ 11,000 on a mass advertising campaign as early as 1892. Its trademark was officially filed in the US that year and has consistently been displayed with the same script to this day. Over time it also associated its brand with a bright red color, the hour-glass shaped bottle (1915) and the ribbon logo (1970). Together these

aspects contribute to differentiating Coke from rivals such as Pepsi-Cola, which has applied a competitive pressure since 1898.

2>Cadillac's branding message extols the virtues of art and science. Cadillac showcases proactive safety features; precision all weather controls; and infotainment luxuries such as Onstar, the in-vehicle safety, security and information service that uses Global Positioning System (GPS) satellite technology and wireless communication to link the driver and vehicle to 24-hour real-time, person-to-person

BUYERS

A buyer is any person who contracts to acquire an asset in return for some form of consideration.

Party which acquires, or agrees to acquire, ownership (in case of goods), or benefit or usage (in case of services), in exchange for money or other consideration under a contract of sale. Also called purchaser.

EXAMPLES

For TIMKEN the gear manufacturing company the buyers will all the Automobiles company and engine or Motor making companies

BRAND SWITCHING

1>Consumer decision to purchase a product brand different from that previously or usually purchased. Brand switching can be instigated by price promotions, in-store displays, superior

availability, perceived improvements or innovations in competitive brands, desire for novelty, number of available brands, perceived risk, frequency of purchase, changes in quality, or level of satisfaction with the most recent purchase. Brand switching is most common with products that have no great perceived variation in quality across brands such as bottled water, dairy products, or paper towels.

2>Brand switching refers to a consumer’s use of more than one brand within a product category.

3>Brand switching is when a consumer or group of consumers switches their allegiance from one brand of a certain type of product to another.

CORPORATE BRAND

Definition1: It is the practice of using a company's name as a product brand name .It is an attempt to use corporate brand equity to create product brand recognition .Corporate branding is not limited to a specific mark or name .Branding can incorporate multiple touch points. These touch points include; logo, customer service, treatment and training of employees, packaging, advertising, stationery, and quality of products and services. Any means by which the general public comes into contact with a specific brand constitutes a touch point that can affect perceptions of the corporate brand.

Definition 2: Corporations around the world are increasingly becoming aware of the enhanced value that corporate branding strategies can provide for an organization. Branding in the classic sense is all about creating unique identities and positions for products and services, hence distinguishing the offerings from competitors.

Definition 3: Corporate branding is a serious undertaking that entails more skills and activities than just an updated glossy marketing facade with empty jargon. A corporate branding strategy creates simplicity; it stands on top of the brand portfolio as the ultimate identifier of the corporation.

Definition 4: A corporate brand can very often assist the corporation and the management to focus in on the core vision and values. Once this overall platform has been established and implemented, it serves as a great stepping stone for revisiting any other brands in the corporations’ portfolio to have a new approach to and look at its various brand identities. This ultimately will lead to the final brand architecture of the corporation and set the strategy for how branding and brands will play an important role to achieve the corporate objectives.

Examples: HSBC, which has successfully implemented a stringent corporate

branding strategy .HSBC employs the same common expression throughout the globe with a simple advertising strategy based on the slogan “The world’s local bank.” This creative platform enables the corporation to bridge between many cultural differences, and to portray many faces of the same strategy.

Hewlett-Packard" Most people think we are just a printer company," says Michael Mendenhall, H-P's chief marketing officer. That's why H-P is launching a new corporate branding campaign, according to The Wall Street Journal, "to recast itself as a broader technology concern."

Coke vs. a generic soda. Because Coca-Cola has built a powerful brand equity, it can charge more for its product--and customers will pay that higher price.

WAL-MART offers low price and good values. They attract more customers then other competitive brands. As their brand strategy is to provide good quality products at reasonable price.

CORPORATE STRATEGY

Definition 1: Approach to future that involves (1) examination of the current and anticipated factors associated with customers and competitors (external environment) and the firm itself (internal environment), (2) envisioning a new or effective role for the firm in a

creative manner, and (3) aligning policies, practices, and resources to realize that vision.

Definition 2: Corporate strategy is the direction an organization takes with the objective of achieving business success in the long term. Recent approaches have focused on the need for companies to adapt to and anticipate changes in the business environment, i.e. a flexible strategy. The development of a corporate strategy involves establishing the purpose and scope of the organization's activities and the nature of the business it is in, taking the environment in which it operates, its position in the marketplace, and the competition it faces into consideration

Definition 3: It determines how resources are to be used to meet the organisation's goals in the areas of production, finance, research and development, personnel and marketing.

Strategic or institutional management is the conduct of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. Is also concerned with the firm's choice of business, markets and activities' (Kay, 1996), and thus it defines the overall scope and direction of the business.

Definition 4: It must convey a significant stretch for your company, a sense of direction, discovery, and opportunity that can communicated as worthwhile to all employees. It should not focus so much on today's problems, which are normally dealt with by company visions and missions, but rather on tomorrow's opportunities.

EXAMPLES

At General Electric (GE) the corporate vision is 'We bring good things to life'.The corporate success depends on the vision articulated by the chief executive or the top management. For a vision to have any impact of the employees of an organization it has to be conveyed in a dramatic and enduring way.

The Ford Motor Company vision is 'to become the world's leading consumer company for automotive products and services'.

Bic Pen Corporation expanded beyond ballpoint pen production into disposable cigarette lighters, it used the same plastic

injection moulding technology and similar distribution channels to sell what was essentially another mass-marketed, disposable consumer item.

COUNTER MARKETING

Definition 1:Advertising that takes a position contrary to an advertising message that preceded it. Such advertising may be used to take an opposing position on a controversial topic, or to counter an impression that might be made by another party's advertising.

Definition 2: Counter marketing involves a marketer affirmatively repudiating demand including through avoiding unwanted customers, or preventing certain transactions. It is advertising that takes a position contrary to an advertising message that preceded it.

Definition 3: Social marketers sometimes look at the methods that have been used to sell things, and then they use same methods to unsell them ,it means they encourage a change to positive behaviour by same methods that have encouraged negative behaviour.

EXAMPLES

TABACOO companies use counter marketing by showing various types of ads and mentioning the harmful effects caused by usage of the product .Instead of selling cigarettes, it promotes a tobacco free lifestyle.

TV ads for gambling and suicide help lines. "Social marketing is the systematic application of marketing along with other concepts and techniques to achieve specific behavioral goals for a social good."

IPCL sells it's products and at the same time it promotes  "Save Oil,Save India".

Many paper manufacturing companies mention at the back of their “product save paper save trees”.

CULTURE

Definition 1: Culture is the way that we do things around here. Culture could relate to a country (national culture), a distinct section of the community (sub-culture), or an organization (corporate culture). It is widely accepted that you are not born with a culture, and that it is learned. So, culture includes all that we have learned in relation to values and norms, customs and traditions, beliefs and religions, rituals and artifacts (i.e. tangible symbols of a culture, such as the Sydney Opera House or the Great Wall of China).

Definition 2: Culture is small thing in the world of business. It’s often a representation of the personality, beliefs and values held by the owner of the business. It’s hard to fake and it’s hard to change. But, if you can define it, mold it, and communicate it in ways that support a positive brand experience, you might just be on to a very powerful source of business.

EXAMPLES

Coca Cola translating the name into Chinese without back-translating it ("bite the wax tadpole"), ultimately resulting in a horrible response from an insulted society.

A coffee shop which serves pretty average coffee, but customer’s drawn to visit them time and time again because the owner of the business and every single person he finds to employ are so darn nice and genuinely friendly that they want to do business with them.

CUSTOMER FEEDBACK

Definition 1: Here the company actively solicits expressed customer needs or feedback to improve its products.

Definition 2: Customer feedback is the process or specific instance of providing information to businesses about products, services and

customer service. Management, marketing and sales departments can all use customer feedback to streamline processes and improve profitability.

Definition 3: Customer feedback should address the satisfaction level of individual customers, as well as allowing room for customer comments. Different types of customer feedback include surveys, product or service review cards and telephone hot lines. Customer feedback may be solicited or unsolicited by the company.

EXAMPLES

National Express, one of the UK's leading travel companies invites passengers to send text messages whilst riding the bus.

Cisco and Microsoft Knowledgebase

Dell have turned user feedback into an entire social network site, complete with Ding-style voting, memberships, commenting and all that jazz. It’s a master stroke .Now, if Dell want to know what their users care about and are most hungering for, they just go to this website and the front page lists the most requested product and feature ideas in order of demand!

Dominoes Pizza - This example is probably the most publicized company example of surveying their customers to determine how their product, in this case pizza, was being consumed and how it would be better.  The story continues that they re-invented their crust and sauce due to a survey of customers and they have changed drastically their product as a result.  This increased their bottom line.

American Pacific Enterprises - This home textile manufacturer is innovating by using customer feedback surveys on the use of their products and perhaps ways to bring new products to the marketplace.  They can make better business decisions based on the information their customers provide and they are now thinking of doing this on a more local level.

CUSTOMER INTIMACY

Definition 1: Customer intimacy is based on the ability of the supplier to become accepted and known as the regular partner.

Definition 2: It is one of the three disciplines in the Treacy-Wiersema Value-Discipline Model on which an organisation may focus its energies. This discipline is characterised by occupying only one (or a few) high-value customer niches and being obsessive about understanding the individual customers in detail.

Definition 3: A business strategy that focuses on the needs and wants of a specific type of customer, and in which the business tries to establish relationships with specific customers .

Segments and targets markets precisely .its builds customer loyalty for the long term . Creating high barriers to entry ,empowers the people actually dealing with the customer. Integrates business systems, supply chain and roadmaps with the customer .Jointly develops customizable solutions

Definition 4: Customer intimacy is the largest source of your growth, sustainable competitive advantage, and profit. Everyone in your organization should practice it.

Customer-intimate companies bring an entirely fresh perspective. They discover unsuspected problems, detect unrealized potential, and create a dynamic synergy with customers. They often merge their operations with those of their customers. In the integration of their operations, suppliers become more than merely useful: They become indispensable.

EXAMPLES

IDEO's Innovation build bridges from one department to another, from your company to your prospective customers, and ultimately from the present to the future

Jack Welch's goal was to make GE "the world's most competitive enterprise." Welch believed in trying to know every

employee and every customer, just like a village grocer. Welch even nicknamed GE "the grocery store".

Nordstrom's and IBM. These companies win by understanding their customers deeply and delivering exactly what they need, often in a customized way.

CUSTOMER LOYALITY RESEARCH

Definition 1: Most businesses today recognize – or at least pay lip service to—the importance of customers and their loyalty .Banners and slogans say it. Advertising focuses on it. And customer service departments have become a standard, to assure customers they care and want to make things right. Customers make decisions about where to spend their time, money, and effort daily, in fact, multiple times a day. In any case, the scenario is always the same for the seller – to make their product or service offering the preferred choice.

Definition 2: But loyalty is more than just behaviour .It is a fallacy to assume that a customer is loyal just because they continue to buy from you. There are many reasons why a customer repeats purchasing which have little to do with being really loyal.

Definition 3: Loyalty can be defined as customers continuing to believe that one organization’s products/services offer remains their best option. It meets their value proposition whatever that may be. They take that offer whenever faced with that purchasing decision. Moreover, loyalty means hanging in there even when there may be a problem because the organization has been good to them in the past and addresses issues when they arise.

Definition 4: It means that they do not seek out competitors and, when approached by competitors, are not interested. It also means being willing to spend the time and effort to communicate with the organization so as to build on past successes and overcome any weaknesses. In a nutshell, loyalty means a customer wants to do business with you and does.

Definition 5: Customer loyalty research is designed to help companies identify why customers return, why they defect, and why they buy. When customer loyalty market research is effective, it delivers key insights including specific statistics on consumer loyalty that can help demonstrate the attitudes and behaviors that effect loyalty

A customer loyalty program is a structured and long-term marketing effort which provides incentives to repeat customers who demonstrate loyal buying behavior.

EXAMPLES

At Maritz, multidimensional loyalty research is designed to provide comprehensive data and clear solutions. It’s not surprising that our customer satisfaction consulting accounts for over 20% of total customer satisfaction research expenditures in the United States, because we deliver unparalleled, actionable insights into customers’ attitudes, behaviors and demographics again and again.

Neiman Marcus is credited with creating the first customer loyalty program in the retail industry, which is called "InCircle."

CUSTOMER MARKET

Definition 1: Customer market" is a term for the portion of available customers who currently patronize a business, usually for a product or service. Most frequently used in business marketing, a customer market can sometimes be called the market or customer base for a business. A customer market can grow and shrink due to changes in the business environment. Maintaining a stable or growing customer market ultimately depends on keeping the existing paying customers of the business happy.

Definition 2: Customer marketing is designed to help a business understand customer complaints by tuning in to the voice of the

customer. Businesses often give surveys to customers to get feedback that gives them a clearer understanding of how customers think. Keeping in tune with the desires, complaints and experiences relayed by customers helps a business better streamline the customer experience.

Definition 3: Consumer market consists of purchasers or individuals in their households who personally consume or benefit from the purchased products and who do not buy products primarily to make a profit

EXAMPLES Ducati turned to events, PR and relationships with their actual

customers and admirers through various Ducati clubs. The idea of customer as influencer is an important piece of the marketing puzzle and Ducati is going in the right direction to achieve this. They also re-examined their messaging and took a much closer look at their audiences and the benefits to that target and repositioned the brand. The results of having a more direct conversation with your customer and engaging them through marketing efforts always results in an acceleration.

CUSTOMER NEEDS

Definition 1: It is easy to make assumptions about what customers want and need. Interviewing customers provides the team with up-to-date information on customer priorities, clarifies likes and dislikes, and identifies emerging opportunities.

Definition 2: Problems that customers intend to solve with the purchase of a good or service. See also customer expectations and customer requirements.

Definition 3: Knowing and understanding customer needs is at the centre of every successful business, whether it sells directly to individuals or other businesses. Once you have this knowledge, you

can use it to persuade potential and existing customers that buying from you is in their best interests.

EXAMPLES

Farming corn ,to do this job, the farmer must select the seed, control the insects, control the weeds, prepare the soil, plant the seed, grow the corn, protect the crop, harvest the crop, dry the harvest, market the crop and assess the yield.

Hotels have to provide their customer needs .The customer needs are to secure the right product at the right price at the right time. A customer who has a need for a product or service with a specific budget and needs to have the fulfilment within a time frame that company has to meet.

CUSTOMER RELATION

Definition 1: Those aspects of a business strategy which relate to techniques and methods for attracting and retaining customers.

Definition 2: Managing the customer relationship is a definition of how the company should attend to the customer after the initial sale. Clients are notorious for demanding the best of breed service and product and if the supplier does not deliver, the customer will find their competitor in an instant.

Definition 3: Informing customers of what’s going on at your place is a key to build healthy customer relationships. Managers need to assess customer relationships as it helps in creating a loyal customer base. After all, customers are the ones who provide revenues to act as the financial fuel for the company.

EXAMPLES Pizza hut has a customer relationship with their customer

through their feedback forms which have various options about the service also give a space for customers idea of improvement.

Linkedin to identify contacts in target companies. This has resulted in several meetings but, as our sales process takes quite a bit of time, we're still in the relationship building stage with customers.

CUSTOMER RELATIONSHIP MANAGEMENT

Definition 1: It is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service .It also defines a company-wide business strategy including customer-interface departments as well as other departments.

Definition 2: Is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way.

Definition 3: The methods and concepts a company uses to manage their relationships with their customers. For example a company might use a database to keep track of customers – knowing the most about your customers as possible is the key.

Definition 4: A customer centric business strategy that proactively builds a bias towards a company or organization with its customers, employees, and channels. The result is increased retention and satisfaction ultimately contributing to a perception of enhanced value and increased profitability.

EXAMPLES Using customer relationship management (CRM) tools, Termite

Extermination Inc. was able to develop and implement a marketing plan that increased sales dramatically.

American Airlines is one of the best .They offer perks that show they are treating different customers differently. But the industry’s customer differentiation is still designed around their product and their services, not around individual customer needs. Customers don’t want to be treated equally. They want to be treated individually .They manage their relation with customers in different way which makes them stand out.

CUSTOMER RELATIONSHIP MARKETING

Definition 1: It recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages .With the growth of the internet and mobile platforms ,Customer Relationship Marketing has continued to evolve and move forward as technology opens more collaborative and social communication channels. This includes tools for managing relationships with customers those go beyond simple demographic and customer service data.

Definition 2: Customer relationship marketing recognizes that it is not enough to attract buyers .The CRM goal is to covert buyers into loyalists and loyalists into enthusiasts. It focuses their resources on moving their customer up the loyalty .This is new view of marketing is not merely a better way to practice marketing.

Definition 3: Promotional and selling activities aimed at developing and managing trusting and long-term relationships with larger customers. Customer profile, buying patterns, and history of contacts is maintained in a sales database, and a service representative (also called account executive) is assigned to one or more major customers to fulfil their needs and maintain the relationship.

Definition 4: Relationship Marketing is a marketing strategy whose objective is to establish and maintain a profitable, long-term relationship with a customer, which goes beyond the initial contact.

Definition 5: Relationship marketing is a form of marketing that evolved from direct response marketing, it places emphasis on building longer-term relationships with customers rather than on individual

transactions. Relationship marketing involves an understanding of customers' needs and wants through their lifecycle and providing a range of products or services accordingly.

EXAMPLES Sending new customers a "Welcome Kit," which might have

an incentive to make a second purchase.  If 60 days pass and the customer has not made a second purchase, you would follow up with an e-mailed discount.  You are using customer behavior over time (the customer Life Cycle) to trigger the marketing approach.

Star bucks has blogs and are capable of establishing trusting customer relationships that meet the concept of one-to-one marketing and are a vehicle to reach niche markets According to Gardner a blog has the capacity to establish a two way dialogue with the participants. “customer relationship blogs” because it allows companies to interact and connect with customers in an immediate, convenient and personal way. 

CUSTOMER SATISFACTION MODEL

Definition : The Kano model(customer satisfaction model) is a theory of product development and customer satisfaction developed in the 80s by Professor Noriaki Kano which classifies customer preferences into five categories:

Attractive : These attributes provide satisfaction when achieved fully, but do not cause dissatisfaction when not fulfilled. These are attributes that are not normally expected, For example, a thermometer on a package of milk showing the temperature of the milk. Since these types of attributes of quality unexpectedly delight customers, they are often unspoken.

One-Dimensional : These attributes result in satisfaction when fulfilled and dissatisfaction when not fulfilled. These are attributes that are spoken of and ones which companies compete for. An example of this would be a milk package that is said to

have ten percent more milk for the same price will result in customer satisfaction, but if it only contains six percent then the customer will feel misled and it will lead to dissatisfaction.

Must-Be : These attributes are taken for granted when fulfilled but result in dissatisfaction when not fulfilled. An example of this would be package of milk that leaks. Customers are dissatisfied when the package leaks, but when it does not leak the result is not increased customer satisfaction. Since customers expect these attributes and view them as basic, then it is unlikely that they are going to tell the company about them when asked about quality attributes.

Indifferent : These attributes refer to aspects that are neither good nor bad, and they do not result in either customer satisfaction or customer dissatisfaction.

Reverse : These attributes refer to a high degree of achievement resulting in dissatisfaction and to the fact that not all customers are alike. For example, some customers prefer high-tech products, while others prefer the basic model of a product and will be dissatisfied if a product has too many extra features.

EXAMPLES

A survey might be used by a retail store chain wanting to know how customers feel about their stores. It is designed to identify areas needing improvement.

Product registration form provides an excellent opportunity to do market research. This survey attempts to find out how various factors affect a customer's buying decision. Learn which attributes are perceived to be associated with the product(s). It will explain the satisfaction of the customer.

CUSTOMER SATISFACTION RESEARCH

Definition 1: Customer satisfaction research is that area of marketing research which focuses on customers' perceptions with their shopping or purchase experience. Many firms are interested in understanding what their customers thought about their shopping or purchase experience, because finding new customers is generally more costly and difficult that servicing existing or repeat customers.

Many people are familiar with "business to customer" (B2C) or retail-level research, but there are also many "business to business" (B2B) or wholesale-level projects commissioned as well.

Definition 2: Understanding your customers is a critical element of providing customer service. That means communication and data gathering. Find information and methods about how to gather and make sense of customer information - satisfaction levels, use of focus groups, surveys.

EXAMPLES

Many companies have easy-to-use form designed to aid in the quick resolution of customer service problems. It will help prevent customer problems from falling through the cracks, provide for an orderly hand-off to someone who can address the matter, and help you establish fool-proof procedures that ensure prompt action is taken when a customer is unhappy with the products or services received. You can quickly customize the form to reflect the work flow of your company.

Mineful is a web based software for creating online surveys, building business web forms, and easily analyzing and reporting data. Mineful's market research software and online questionnaire tool helps you::: Create online surveys using an intuitive wizard interface, Send invitations and track respondents using uploadable email lists, View your data and create reports and graphs online.

CUSTOMER SERVICE

Definition 1: Customer service is the provision of service to customers before, during and after a purchase.

Definition 2: "Customer service is about treating others as you would like to be treated yourself".

Definition 3: A wide variety of activities intended to ensure that customers receive the goods and services they require to satisfy their needs or wants in the most effective and efficient manner possible.

Definition 4: Customer Service is the commitment to providing value added services to external and internal customers, including attitude knowledge, technical support and quality of service in a timely manner"

EXAMPLES Bank of America has a 24 hour customer service. Customer can

send a secure email to them at anytime day or night. They provide their customer the required support.

tMobile has a customer service which is through their own phone a message can be sent directly to their customer service centre.

CUSTOMER SURPLUS

Definition 1: A measure of the value of a particular deal to the customer. Surplus is the difference between the fair price and the price actually paid.. If the price the customer pays is less than a fair price, the surplus is positive; if more than the fair price, negative; if equal to fair price, zero.

Definition 2: It is the amount that consumers benefit by being able to purchase a product for a price that is less than the most that they would be willing to pay.

Definition 3: Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price they do pay. If a consumer would be willing to pay more than the current asking price, then they are getting more benefit from the purchased product than they spent to buy it.

EXAMPLES

If a bid to buy the yacht, I might decide that I was willing to pay a maximum of £175,000 (I can but dream!). If the current highest bid is only £128,000, then the bidding site will show me as the new highest bidder at £128,001. If another bidder offers £140,000 then the bidder will be informed that this is not the highest bid but the new bid price will now be £140,000. Only if someone bids more than £175,000 will I lose the auction, but I might end up paying the full £175,000 for the item concerned.

CUSTOMER VALUE ANALYSIS

Definition 1: Customer Value Analysis is a customer-survey methodology that helps customer increase market share. It works best in the business-to-business and consumer-durables markets. In these markets, customers make purchase decisions based on their perceptions of value, which are formed by their perceptions of quality and price. In the aggregate, customers flow from companies that provide inferior value to those that provide superior value.

Definition 2: It shows how customers select between competing suppliers.   The methodology examines the relationship between the perceived benefits customers identify with a product or service offering and their willingness to pay for those benefits.

Definition 3: An organization's rating of the value it provides to its customers relative to that provided by its competitors.

Definition 4: The path to improved customer value starts with data. Customer value analysis develops a quantitative picture of the markets in which you compete.

EXAMPLES The Lucent Technologies business units commission surveys to

measure the level of satisfaction of their customers and the level of satisfaction of competitor's customers. Survey results are used to manage the business at a fundamental level.

CUSTOMER VALUE MANAGEMENT

Definition 1: Customer value management is managing each customer relationship with the goal of achieving maximum lifetime profit from the entire customer base. Customer value management enables companies to take full advantage of the economics of loyalty by increasing retention, reducing risk, and amortizing acquisition costs over a longer and more profitable period of engagement.

Definition 2: CVM shifts the focus of the enterprise from managing products or marketing campaigns to managing the profitability of each individual customer over the entire life of the relationship. While CVM can and does lead to better product offerings and more targeted campaigns, a customer value manager will ask different questions than a traditional marketing manager. Art and science of measuring, analyzing, and managing value. A product's relative value is the customer-perceived performance-for-price relative to rival brands.

Definition 3: It is central to gaining the maximum lifetime value of managing customers by turning your data into Intelligent Information . CVM solutions enable you to best respond to your customer needs in a timely manner.

EXAMPLES Company like colgate, they always mention the important parts

of the product in their advertising such as it makes teeths healthy,helps improve stain and much more. They always include it in their marketing.

Ziploc has mentioned on their packaging fresh food always, freez.they promote their product through advertising the essentials of the product.

DATA MINING

Extracting of useful information about individuals, trends, and segments from the mass of data. (Philip Kotler- Marketing Management)

Internet-based marketing strategies generate extremely large data sets from customer interactions. Purchase histories, financial records, customer service records, and web site usage are just some of the data that reside in customer databases. In order to transform this mountain of diverse data into operationally useful information, marketers are increasingly using data mining procedures. Data mining is the computer-based exploration and analysis of large quantities of data in order to discover meaningful patterns and rules for the purpose of improving marketing, sales, and customer support operations. The combination of data mining procedures with data warehousing enables the MDSS to move beyond just support for the operational processes in the marketing organization and to focus on actual customer behaviour. Data mining and data warehousing provide the means and the infrastructure for extracting strategic opportunity from knowledge of the customer.

DATA WAREHOUSING

A collection of current data captured, organized, and stored in a company’s contact center. (Philip Kotler- Marketing Management)

IBM defines a data warehouse as a place that stores enterprise data designed to facilitate management decisions. In essence, a data warehouse provides the basis for an analytical system where periodic data points are collected and stored at specified times for future analysis.Data warehousing enables marketers to capture, organize, and store potentially useful data about customers and markets for decision-making purposes.

Every record of a transaction or interaction with a customer, supplier, channel member, or sales person is an opportunity to create knowledge. Firms collect data from these day-today business operations. In order for this data to be useful, it is often organized and stored in a data warehouse. Simply put, a marketing data warehouse is a repository for data that has been collected from internal and external data sources. Each customer generates a stream of transaction records over time. Data sources may include scanner data, billing records, application, registration forms, warranty forms, call reports, customer service inquiries, and web site data.Data warehousing enables the firm to organize and store this data for analysis purposes. By careful analysis of this and other data, firms can design more effective and efficient ways to serve their customers. Data warehouses exist to support the decision-making process by providing ready access to market and customer data.

Example: PIZZA HUT Pizza Hut claims to have the largest fast-food customer data warehouse in the world, with 40 million U.S. households—or between 40 and 50 percent of the U.S. market. The millions of customer records are gleaned from point-of-sale transactions at its restaurants. Pizza Hut can slice and dice data by favourite toppings, date of last order, or by whether you order a salad with your pepperoni pizza. Using its Teradata Warehouse Miner, Pizza Hut has not only been able to purge expensive duplicates from its direct-mail campaigns, but can also target its marketing to find the best coupon offers for each household and predict the success of campaigns.

DECEPTIVE ADVERTISING

Any advertising intended to mislead the consumers. Deceptive Advertising is illegal. Advertising is considered as such when it makes spurious claims about a product, fails to fully disclose information about it, or otherwise creates false impressions. Advertising agencies, celebrity endorsers and retailers may all be accused of engaging in deceptive advertising. For example bait and switch advertising by the retailers is considered as deceptive advertising. This is where the retailer advertises a low priced

item (which may not be available or in extremely low supply) to increase his store traffic and the consumers buy its high priced substitute. The laws prohibiting deceptive advertising are enforced by the Federal Trade Commission. (The Marketing Glossary: Key Terms, Concepts and Applications By Mark N. Clemente)

DECISION MAKING:

Decision making is often seen as the centre of what managers do, something that engages most of a managers time. It is one of the areas that information systems have sought most of all to affect (with mixed success). Decision making can be divided into 3 types: strategic, management control and operations control.

Strategic decision making: This level of decision making is concerned with deciding on the objectives, resources and policies of the organisation. A major problem at this level of decision making is predicting the future of the organisation and its environment, and matching the characteristics of the organisation to the environment. This process generally involves a small group of high-level managers who deal with very complex, non-routine problems. For example, some years ago, a medium-sized food manufacturer in an East African country faced strategic decisions concerning its range of pasta products. These products constituted a sizeable proportion of the company's sales turnover. However, the company was suffering recurrent problems with the poor quality of durum wheat it was able to obtain resulting in a finished product that was too brittle. Moreover, unit costs were shooting up due to increasingly frequent breakdowns in the ageing equipment used in pasta production. The company faced the decision whether to make a very large investment in new machinery or to accept the offer of another manufacturer of pasta products, in a neighbouring country, that it should supply the various pasta products and the local company put its own brand name on the packs. The decision is strategic since the decision has implications for the resource base of the enterprise, i.e. its capital equipment, its work force, its technological base etc. The implications of

strategic decisions extend over many years, often as much as ten to fifteen years.

Management control decisions: Such decisions are concerned with how efficiently and effectively resources are utilised and how well operational units are performing. Management control involves close interaction with those who are carrying out the tasks of the organisation; it takes place within the context of broad policies and objectives set out by strategic planners. An example might be where a transporter of agricultural products observes that his/her profits are declining due to a decline in the capacity utilisation of his/her two trucks. The manager (in this case the owner) has to decide between several alternative courses of action, including: selling of trucks, increasing promotional activity in an attempt to sell the spare carrying capacity, increasing unit carrying charges to cover the deficit, or seeking to switch to carrying products or produce with a higher unit value where the returns to transport costs may be correspondingly higher. Management control decisions are more tactical than strategic.

Operational control decisions: These involve making decisions about carrying out the “specific tasks set forth by strategic planners and management. Determining which units or individuals in the organisation will carry out the task, establishing criteria of completion and resource utilisation, evaluating outputs - all of these tasks involve decisions about operational control. The focus here is on how the enterprises should respond to day-to-day changes in the business environment. In particular, this type of decision making focuses on adaptation of the marketing mix, e.g. how should the firm respond to an increase in the size of a competitor's sales force? Should the product line be extended? Should distributors who sell below a given sales volume be serviced through wholesalers rather than directly, and so on.

Within each of these levels, decision making can be classified as either structured or unstructured. Unstructured decisions are those in which the decision maker must provide insights into the problem definition. They are novel, important, and non-routine, and there is no well-understood procedure for making them. In contrast, structured decisions are repetitive, routine, and involve a definite procedure for handling them so that they do not have

to be treated each time as if they were new. Structured and unstructured problem solving occurs at all levels of management. In the past, most of the success in most information systems came in dealing with structured, operational, and management control decisions. However, in more recent times, exciting applications are occurring in the management and strategic planning areas, where problems are either semi-structured or are totally unstructured.

Making decisions is not a single event but a series of activities taking place over time. Suppose, for example, that the Operations Manager for the National Milling Corporation is faced with a decision as to whether to establish buying points in rural locations for the grain crop. It soon becomes apparent that the decisions are likely to be made over a period of time, have several influences, use many sources of information and have to go through several stages. It is worth considering the question of how, if at all, information systems could assist in making such a decision. To arrive at some answer, it is helpful to break down decision making into its component parts.

The literature has described 4 stages in decision making: intelligence, design, choice and implementation. That is, problems have to be perceived and understood; once perceived solutions must be designed; once solutions are designed, choices have to be made about a particular solution; finally, the solution has to be implemented.

Intelligence involves identifying the problems in the organisation: why and where they occur with what effects. This broad set of information gathering activities is required to inform managers how well the organisation is performing and where problems exist. Management information systems that deliver a wide variety of detailed information can be useful, especially if they are designed to report exceptions. For instance, consider a commercial organisation marketing a large number of different products and product variations. Management will want to know, at frequent intervals, whether sales targets are being achieved. Ideally, the information system will report only those products/product variations which are performing substantially above or below target.

Designing many possible solutions to the problems is the second phase of decision making. This phase may require more

intelligence to decide if a particular solution is appropriate. Here, more carefully specified and directed information activities and capabilities focused on specific designs are required.

Choosing among alternative solutions is the third step in the decision making process. Here a manager needs an information system which can estimate the costs, opportunities and consequences of each alternative problem solution. The information system required at this stage is likely to be fairly complex, possibly also fairly large, because of the detailed analytic models required to calculate the outcomes of the various alternatives. Of course, human beings are used to making such calculations for themselves, but without the aid of a formal information system, we rely upon generalisation and/or intuition.

Implementing is the final stage in the decision making process. Here, managers can install a reporting system that delivers routine reports on the progress of a specific solution, some of the difficulties that arise, resource constraints, and possible remedial actions. The following table illustrates the stages in decision making and the general type of information required at each stage.

Stages in the decision making process

In practice, the stages of decision making do not necessarily follow a linear path from intelligence to design, choice and implementation. Consider again the problem of balancing the costs and benefits of establishing local buying points for the National Milling Corporation. At any point in the decision making process it may be necessary to loop back to a previous stage. For example, one may have reached stage 3 and all but decided that having considered the alternatives of setting up no local buying points, local buying points in all regions, districts or villages, the government decides to increase the amounts held in the strategic grain reserve. This could cause the parastatal to return to stage 2 and reassess the alternatives. Another scenario would be that having implemented a decision one quickly receives feedback indicating that it is not proving effective. Again, the decision maker may have to repeat the design and/or choice stage(s).

DECISION SUPPORT SYSTEMS (DSS)

A computer based system designed to assist in management decision making. Decision Support Systems are comprised of specially developed software and hardware. Management inputs data (qualitative and/or quantitative) into the system. The system then outputs information describing the implications of specific decisions. (Such Systems may also be designed to recommend specific decisions). Decision Support Systems enable management to conduct “what-if” analysis. For example the management might ask: “If we increase the number of distribution outlets in a given area, what will be the impact on product sales in that area?” In marketing, DSS are often used in sales forecasting and in determining media schedules. (The Marketing Glossary: Key Terms, Concepts and Applications By Mark N. Clemente).

DEMAND ANALYSIS

Study of sales generated by a good or service to determine the reasons for its success or failure, and how its sales performance can be improved. And the market research that is done to analyse the demand in the market.

LG franchisees must make a sales register to analyse the consumers’ responses to their product.

Manufacturing companies regularly conduct market surveys and collect sales data to simulate demand and production requirements.

DEMAND FORECASTING

Demand forecasting is the activity of estimating the quantity of a product or service that consumers will purchase. Demand forecasting involves techniques including both informal methods, such as educated guesses, and quantitative methods, such as the use of historical sales data or current data from test markets.

Demand forecasting may be used in making pricing decisions, in assessing future capacity requirements, or in making decisions on whether to enter a new market.

ExamplesMaruti Suzuki did demand forecasting for deciding the number of cars that are required to be producedCoca Cola decides the production output by the help of demand forecastingMahindra and Mahindra did a market research to launch tractors in different countries i.e. Vietnam and Africa.

DEMOGRAPHIC SEGMENTATION

Demographic segmentation consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality. As you might expect, demographic segmentation variables are amongst the most popular bases for segmenting customer groups. This is partly because customer wants are closely linked to variables such as income and age. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process. The main demographic segmentation variables are summarised below:

Age Consumer needs and wants change with age although they may

still wish to consumer the same types of product. So Marketers design, package and promote products differently to meet the wants of different age groups. Good examples include the marketing of toothpaste (contrast the branding of toothpaste for children and adults) and toys (with many age-based segments).

Life-cycle stage A consumer stage in the life-cycle is an important variable -

particularly in markets such as leisure and tourism. For example, contrast the product and promotional approach of Club 18-30 holidays with the slightly more refined and sedate approach adopted by Saga Holidays.

Gender

Gender segmentation is widely used in consumer marketing. The best examples include clothing, hairdressing, magazines and toiletries and cosmetics.

Income Another popular basis for segmentation. Many companies target

affluent consumers with luxury goods and convenience services. Good examples include Coutts bank; Moet & Chandon champagne and Elegant Resorts - an up-market travel company. By contrast, many companies focus on marketing products that appeal directly to consumers with relatively low incomes. Examples include Aldi (a discount food retailer), Airtours holidays, and discount clothing retailers such as TK Maxx.

Social class Many Marketers believe that a consumers "perceived" social

class influences their preferences for cars, clothes, home furnishings, leisure activities and other products & services. There is a clear link here with income-based segmentation.

Lifestyle Marketers are increasingly interested in the effect of consumer

"lifestyles" on demand. Unfortunately, there are many different lifestyle categorisation systems, many of them designed by advertising and marketing agencies as a way of winning new marketing clients and campaigns!

DETERMINISTIC SYSTEM

A model where specified conditions are always associated with precisely specified consequences i.e. a model based on variables, the values of which may be stated with certainty and are sufficient to describe the system behaviour.

DIFFERENTIAL WORTH

The difference in the worth (economic value) of benefits delivered by one product versus a reference product. It is equivalent to the monetary difference between the two products’ positions on the fair-value line. The reference product can be the

average product (in the category or consideration set) or a specific competing product.

DIFFERENTIATED MARKETING

When a firm produces numerous products and promotes them with a different marketing mix designed to satisfy smaller segments. Differentiated Marketing tends to raise costs and firms may be forced to practice differentiated marketing to remain competitive.

A strategic consideration where a company chooses to operate in more than one market segment and develops specific products and promotional strategies for each. An example of differentiated marketing is a company that produces coffee and markets various types: regular, decaffeinated, instant etc. Differentiated marketing creates more toatal sales than undifferentiated marketing. However, the costs of engaging in a differentiated are high. This is because the company must modify its product and incur increased costs for specialized administrative, inventory and promotional activities.

An example of this would be airline companies offering first, business (segment 1) or economy class tickets (segment 2) , with separate marketing programmed to attract the different groups.

Example: Mahindra tractors have different products for different segment of population. Like Mahindra Ultra, Turbo, and Shaktiman.

Nokia has various models catering to segments of the population. Nokia 1110, 5310, Eseries.etc

DIFFUSED PREFERENCES

This refers to pattern of consumer preferences in terms of various attributes of a product or service. One of the preferences are known as diffused preferences where consumer preferences are scattered indicating that consumers vary greatly in terms of their preferences. In this type of product market the company, which enters first, is likely to position its product in the centre of the product preference map to appeal to

the most people. If several brands are in the market, they are likely to position throughout the space and try to show real differences to match consumer-preference differences.

DIGITAL MARKETING

Digital Marketing is the promoting of brands using all forms of digital advertising channels to reach consumers. This now includes Television, Radio, Internet, mobile and any other form of digital media. Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing, it extends beyond this by including other channels with which to reach people that do not require the use of The Internet. As a result of this non-reliance on the Internet, the field of digital marketing includes a whole host of elements such as mobile phones, sms/mms, display / banner ads and digital outdoor.

Examples: Advertisements on television. Digital displays in the malls for advertising.

DIMENSIONS OF CUSTOMER-PERCEIVED VALUE

CVI’s customer-value tree identifies six generic dimensions of customer-perceived value:

a) Product – relating to the good or core service being sold,b) Customer service – customer care activities that support the delivery of the product or core service,c) Relationship – customized connections and knowledge related to individual customers and key accounts,d) Brand affinity – KBFs relating to the authority the brand holds with customers, how well customers identify with the brand and its promise, and peer-group approval associated with using the brand,e) Price – the transactions price that the customer pays for the product; andf) Other costs – that the customer incurs in addition to the transactions price not necessarily paid to the supplier.

Although the key buying factors will be different for different market categories, they can always be classified into these dimensions.

DIRECT MARKETING

The use of consumer- direct channels to reach and deliver goods and services to customers without using marketing middlemen. (Philip Kotler- Marketing Management)

Sending a promotional message directly to consumers, rather than via a mass medium. Includes methods such as Direct Mail and Telemarketing. Example: As soon as Beverly got her realtor's license she sent postcards to all the addresses listed in her zip code. She hoped purchasing a mailing list for consumer direct marketing in her home town would bring her new prospective home buyers faster than word-of-mouth alone.

Direct marketing involves the business attempting to locate, contact, offer, and make incentive-based information available to consumers.

Direct marketing is just what it sounds like - directly reaching a market (customers and potential customers) on a personal (phone calls, private mailings) basis, or mass-media basis (infomercials, magazine ads, etc.).

Types of direct marketing include: distributing flyers; door-to-door solicitations; curbside stands; FAX broadcasting; television marketing (i.e., infomercials); coupon ads in print media; and voice mail marketing.

DISPOSABLE INCOME

Disposable income is total personal income minus personal current taxes. In national accounts definitions, personal income, minus personal current taxes equals disposable personal income. Subtracting personal outlays (which includes the major category of personal (or, private) consumption expenditure) yields personal (or, private) savings.

DISPLAY ADVERTISING

Print advertising that appears in the editorial section of a publication and which usually features creative use of colours

and illustrations to maximise communication effectiveness. Display ads vary in their design. Large display ads attract reader’s attention, as does use of colour. Display advertising contracts classified advertising, which are print ads categorized under separate headings i.e. employment, real estate, business opportunities etc.

DISTRIBUTION CHANNEL

Distribution (or "Place") is the fourth traditional element of the marketing mix. The other three are Product, Price and Promotion.The Nature of Distribution ChannelsMost businesses use third parties or intermediaries to bring their products to market. They try to forge a "distribution channel" which can be defined as "all the organisations through which a product must pass between its point of production and consumption". Why does a business give the job of selling its products to intermediaries? After all, using intermediaries means giving up some control over how products are sold and who they are sold to.The answer lies in efficiency of distribution costs. Intermediaries are specialists in selling. They have the contacts, experience and scale of operation which means that greater sales can be achieved than if the producing business tried run a sales operation itself.Functions of a Distribution Channel

The main function of a distribution channel is to provide a link between production and consumption. Organisations that form any particular distribution channel perform many key functions:

All of the above functions need to be undertaken in any market. The question is - who performs them and how many levels there need to be in the distribution channel in order to make it cost effective.

Numbers of Distribution Channel Levels

Each layer of marketing intermediaries that performs some work in bringing the product to its final buyer is a "channel level". The figure below shows some examples of channel levels for consumer marketing channels:

Information Gathering and distributing market research and intelligence - important for marketing planning

Promotion Developing and spreading communications about offers

Contact Finding and communicating with prospective buyers

Matching Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging

Negotiation Reaching agreement on price and other terms of the offer

Physical distribution

Transporting and storing goods

Financing Acquiring and using funds to cover the costs of the distribution channel

Risk taking Assuming some commercial risks by operating the channel (e.g. holding stock)

In the figure above, Channel 1 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. An example of a direct marketing channel would be a factory outlet store. Many holiday companies also market direct to consumers, bypassing a traditional retail intermediary - the travel agent.

The remaining channels are "indirect-marketing channels". Channel 2 contains one intermediary. In consumer markets, this

is typically a retailer. The consumer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony, Panasonic, Canon etc. sell their goods directly to large retailers such as Comet, Dixons and Currys which then sell the goods to the final consumers.

Channel 3 contains two intermediary levels - a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of several producers goods and then breaks into the bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. This arrangement tends to work best where the retail channel is fragmented - i.e. not dominated by a small number of large, powerful retailers who have an incentive to cut out the wholesaler. A good example of this channel arrangement in the UK is the distribution of drugs.

DISTRIBUTION

The following table describes the factors that influence the choice of distribution channel by a business:

Market factors: An important market factor is "buyer behaviour"; how do buyer's want to purchase the product? Do they prefer to buy from retailers, locally, via mail order or perhaps over the Internet? Another important factor is buyer needs for product information, installation and servicing. Which channels are best served to provide the customer with the information they need before buying? Does the product need specific technical assistance either to install or service a product? Intermediaries are often best placed to provide servicing rather than the original producer - for example in the case of motor cars. The willingness of channel intermediaries to market product is also a factor. Retailers in particular invest heavily in properties, shop fitting etc. They may decide not to support a particular product if it requires too much investment (e.g. training, display equipment, warehousing).Another important factor is intermediary cost. Intermediaries typically charge a "mark-up" or "commission" for participating in the channel. This might be deemed unacceptably high for the ultimate producer business.

Producer factors: A key question is whether the producer has the resources to perform the functions of the channel? For example a producer may not have the resources to recruit, train and equip a sales team. If so, the only option may be to use agents and/or other distributors.Producers may also feel that they do not possess the customer-based skills to distribute their products. Many channel intermediaries focus heavily on the customer interface as a way of creating competitive advantage and cementing the relationship with their supplying producers.Another factor is the extent to which producers want to maintain control over how, to whom and at what price a product is sold. If a manufacturer sells via a retailer, they effective lose control over the final consumer price, since the retailer sets the price

and any relevant discounts or promotional offers. Similarly, there is no guarantee for a producer that their product/(s) are actually been stocked by the retailer. Direct distribution gives a producer more control over these issues.

Product factors: Large complex products are often supplied direct to customers (e.g. complex medical equipment sold to hospitals). By contrast perishable products (such as frozen food, meat, bread) require relatively short distribution channels - ideally suited to using intermediaries such as retailers.

Distribution Intensity: There are three broad options - intensive, selective and exclusive distribution:Intensive distribution aims to provide saturation coverage of the market by using all available outlets. For many products, total sales are directly linked to the number of outlets used (e.g. cigarettes, beer). Intensive distribution is usually required where customers have a range of acceptable brands to choose from. In other words, if one brand is not available, a customer will simply choose another.Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products. An advantage of this approach is that the producer can choose the most appropriate or best-performing outlets and focus effort (e.g. training) on them. Selective distribution works best when consumers are prepared to "shop around" - in other words - they have a preference for a particular brand or price and will search out the outlets that supply.Exclusive distribution is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area.

DOUBTFUL POSITIONING

Claiming a benefit that customers will doubt that the brand can actually deliver. For example, a mutual fund offers 100% returns on investment. Another example will be the claims for various products in QVC channel: Oxyrich - which claims to clean better than all the leading brands, Ashvini hair oil - which promises to stop hair loss, Weight loss pills etc.

Sometimes companies try and create brand among consumers even before positioning the brand clearly in the market. This is called as doubtful positioning. For instance, many of the dot com companies spent heavily on television advertising without themselves being clear of what they were selling.

DRIP MARKETING

Drip Marketing is a communication strategy that sends, or "drips," a pre-written set of messages to customers or prospects over time. These messages often take the form of E-mail marketing, although other media can also be used. Drip marketing is unique from other database marketing in two ways: (1) the timing of the messages follows a pre-determined course; (2) the messages are dripped in a series applicable to a specific behavior or status of the recipient.Drip Marketing Mediums

E-mail: The most commonly used form of drip marketing is E-mail marketing, due to the low cost associated with sending multiple messages over time. Email drip marketing is often used in conjunction with a Form (web) in a method called an Auto responder. In this method, a lead completes the form on a company's website and is then enrolled in a drip marketing campaign with messaging appropriate to the form's context.

Direct Mail: Although more costly, direct mail software has been developed that enables drip marketing techniques using standard postal mail. This technology relies on digital printing, where low-volume print runs are cost justifiable, and the variable data can be merged to personalize each drip message.

Social Media: The principles of Drip Marketing have been applied in many social media marketing tools to schedule a series of updates. One popular tool, HootSuite, allows users to time messages and disseminate via Twitter, Facebook, LinkedIn, and several other social media sites simultaneously.Examples:1) Subscribers of newsletter receive them at regular intervals.2) Reminder of your membership of a website to be over soon.

DROP ERROR

It occurs when a company dismisses an idea which turns out to be good and successful later. (Marketing Management-Kotler, Kelly, Koshi, Jha)

A decision to drop a PRODUCT from the line, or to discontinue development of a new product which subsequently proves to have been a premature decision, in light of successes achieved by competitors with similar developments(The Westburn Dictionary of Marketing edited by Michael J Baker)

A mistake made by a company in deciding to abandon a new product idea that, in hindsight, might have been successful if developed(International Marketing-Cateora Graham)

The pilot for “Friends”, one of the longest running hit comedies on TV was deemed as ‘not very entertaining or original’.

DUAL ADAPATION

Adapting the product and the communication according to the local market(Marketing Management-Kotler, Kelly, Koshi, Jha)

It involves altering both the product and the communications.

Dual adaption is a marketing strategy designed by Philip Kotler. It is for companies which introduce their products in a new country. It means that you adapt the product to the local market, but also adaption for the commercial message. (Basic Marketing- Cannon)

Using Dual Adaptation the company must adapt the product or service as well as the marketing communication to the foreign market(International Marketing-Joshi)

It refers to the changes made to the product and to communications strategy. It recognizes the socio-cultural differences from country to country.To make this option profitable, the foreign market or markets need to be of sufficient volume. It calls for extensive research and development expenses and tooling costs. (Fundamentals of Marketing- Stanton and Futrell)

Unilever fabric softener- Comfort went through a number of changes: a new logo and more modern packaging in 1992 and the first fully biodegradable formulation

The classic example comes from National Cash Register, which manufactured a crank-operated cash register and promoted it to businesses in less-developed countries.

DUMPING

The practice of selling a good in a foreign market at a price that is lower than its domestic price, or below its cost. (International Marketing-Joshi)

The sale of an exported product at a price lower than that charged for the same in the home market of the exporter. (Marketing-Lamb, Hair, McDaniel)

Practice of pricing a product in a foreign market below the going price in the domestic market(Marketing-Churchill and Peter)

The practice of charging either less than its costs or less than its charges at home in order to enter or win a market. (Marketing-Grewal and Levy )

Selling products in the foreign markets at prices below the prices charged for these goods in their home market,either to meet foreign competition or to dispose of outmoded products (Fundamentals of Marketing- Stanton and Futrell)

A situation in which a company charges either less than its costs or less than its charges in the home market, in order to enter or win a market (Marketing Management-Kotler, Kelly, Koshi, Jha)

In 2002, foreign countries started dumping low cost steel in the US market, hence US had to impose steel tariff on imported steel(Marketing-Grewal and Levy )

Motorola had to eliminate defects to save costs, when foreign competitors were dumping pagers in the Japanese market

Canadian steelmaker Stelco successfully fought dumping of steel products in Brazil, Finland, India, Indonesia, Thailand, and Ukraine.

EARLY ADOPTERS

The secondary category of buyers to try a product, they tend to buy after they see that a product will work.( Marketing Management-Kotler, Kelly, Koshi, Jha)

Category of buyers that don’t like to take much risk, wait and purchase the product after careful review. They enjoy novelty and are often regarded as the opinion leaders for particular product categories. (Marketing-Lamb, Hair, McDaniel)

Opinion leaders who carefully search for new technologies that might give them a dramatic competitive advantage. They are less price sensitive and willing to adopt the product if given personalized solutions and good service support (Marketing Management-Kotler, Kelly, Koshi, Jha)

People who chose new products and are viewed as “the people to check with”.(Marketing-Pride,Fredell, Blotnicky,Grant)

Opinion leaders and role models for others , with good social skills and respect within larger social systems, who adopt to new social systems before others do(Consumer Behaviour-Blackwell,Engel)

An early adopter or lighthouse customer is an early customer of a given company, product, or technology; in politics, fashion, art, and other fields, this person would be referred to as a trendsetter(Marketing-Grewal and Levy )

 Porsche, a successful brand for sports car enthusiasts saw a decline in sports car sales after it entered the SUV mass market, as the early adopters moved onto their new products.

Twitter has been embraced by an older demographic. Twitter’s success has shattered a widely held belief that young people lead the way to popularizing innovations

ECONOMIES OF SCALE

Economies of scale arise when the cost per unit falls as output increases. Economies of scale are the main advantage of increasing the scale of production and becoming ‘big’.

Why are economies of scale important?

Firstly, because a large business can pass on lower costs to customers through lower prices and its share of a market. This poses a threat to smaller businesses that can be “undercut” by the competition Secondly, a business could choose to maintain its current price for its product and accept higher profit margins. For example, a furniture-maker which could produce 1,000 cabinets at £250 each might expand and be able to produce 2,000 cabinets at £200 each. The total production cost will have risen to £400,000 from £250,000, but the cost per unit has fallen from £250 to £200. Assuming the business sells the cabinets for £350 each, the profit margin per cabinet rises from £100 to £150.

Economies of scale gives big companies access to a larger market by allowing them to operate with greater geographical reach

the benefits associated with bulk purchasing. 

Economies of scale refers to the notion of increasing efficiencies of the production of goods as the number of goods being produced increases. (Basic Marketing- Cannon)

Cost advantages associated with large-scale production.

reductions in the price per unit of marketing or manufacturing a product as the quantity marketed or produced increases

The other courier companies use FedEx and charges less than FedEx! They are not really competing with FedEx; they are piggybacking on FedEx by being an

intermediary, getting a lot of business and buying FedEx services for a very good rate, then reselling it. They don’t have huge overhead, airplanes, or branding. They simply Joint Venture with FedEx and use economies of scale. And everybody wins: FedEx, the customer and the middleman (or Joint Venture broker)

Wal-Mart WMT is perhaps the most salient example of a company benefiting from economies of scale.  As a dominant player in retailing, the company's size provides it with enormous efficiencies that it uses to keep costs low. For example, its size allows Wal-Mart to do its own purchasing more efficiently since it has roughly 5,000 large stores worldwide. This gives the company tremendous bargaining power with its suppliers.

ENVIRONMENTAL THREAT

A challenge posed by an unfavorable trend or development that would lead to lower sales or profit(Marketing Management-Kotler, Kelly, Koshi, Jha)

Any factor in the market, external to the marketing organization, that has the potential to negatively impact demand for the marketer's product or service. An environmental threat might be the entrance of a new competitor, the merger of two competitors, the introduction of a new brand, the development of new technology, legislative changes, or social and economic trends. The marketer must be positioned through competitive intelligence and other market trend research to respond quickly to environmental threats. (Fundamentals of Marketing- Stanton and Futrell)

Challenges posed by an unfortunate trend -lead to erosion of company’s position(Basic Marketing- Cannon)

An unfavorable condition in organization’s environment which creates a risk or causes damage to the organization

the tobacco industry has faced numerous environmental threats due to increased social, medical, and legislative pressure against smoking. The tobacco industry responded by deeply discounting some brands and redirecting its resources to non-tobacco products and to foreign markets where the environmental threats are not as great.

Microsoft.Net faces the following threats-

Rival companies such as HP, Oracle and Sun are developing similar productsThe challenge of getting the customers and software developers to focus on the .Net message while US government fights with Microsoft to split into two companies Traditional windows based users and windows software developers’ old mentalities resisting change

ENVIRONMENTAL SCANNING

The process of tracking external changes that can affect markets, including demand for goods and services. (Marketing Management-Kotler, Kelly, Koshi, Jha)

The practice of keeping track of external changes-economic, political, legal, social, institutional, technological and competitive forces that can affect markets. (Marketing-Churchill and Peter)

The practice that seeks to identify the trends that offer previously untapped opportunities or can change the market for goods and services. (Marketing-Churchill and Peter)

Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organisation or the implementation of the marketing plan(Marketing-Lamb, Hair, McDaniel)

The process of monitoring external environment to influence marketing strategy by identifying potential opportunities and threats, trends, and strategic uncertainties (Marketing Management-Panda)

Process of collecting information about forces in the marketing environment (Marketing-Pride,Fredell, Blotnicky,Grant)

European car-maker FIAT , after analysing the economic conditions in Europe, came up with the strategies of streamlining management, creating new models and selling off pieces of company’s holdings.

During recession of the early 1990’s, mail-order house “Lands End” advertised an attaché case at the same price tag that it carried in 1985

H&R Block, a tax preparation service, benefits from changes in tax codes that motivate citizens to have their tax returns prepared by a professional

Several car companies have come up with hybrid cars after scanning the market needs for environmentally friendly cars

EVALUATION OF ALTERNATIVES

After the recognition of problem, the process wherein the consumer evaluates through the various possible options and choices based on a set of important attributes or features.(Marketing-Grewal and Levy)

Process of comparing different products and brands based on standards and specifications(Consumer Behaviour-Blackwell,Engel)

The third step of the "Buyer Decision Process" is the "Evaluation of Alternatives." During this stage of the process, a consumer arrives at a final set of brand choices and then must evaluates them based on their own individual needs, and on the specific buying situation. Companies respond to this buy researching how various consumers evaluate brand alternatives, and adjust their marketing accordingly. (Basic Marketing- Cannon)

At this stage in consumer buying process, the consumer compares the brands and products that are in their evoked set.  Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision.

Verizon has been at a big disadvantage in the smart phone market because of AT&T exclusive right to distribute the iphone. They have responded with a marketing campaign that focuses on how much larger their 3g coverage is then AT&T's. This is because smartphones require a fast internet connection to be of much use. So while AT&T may have the hottest phone, it may run extremely slow in many places where a consumer would want to use it. That is the question Verizon wants consumers to ask themselves when they are evaluating brand alternatives. 

EVENT CREATION

It the skill of publicising fund-raising drives for non-profit organisations. (Marketing Management-Kotler, Kelly, Koshi, Jha)

NDTV Greenathon was to spread the message of environmental concern

The likes of Angus Deaton, Alistair Campbell, DJ Spooney and Ben Shepherd all help raise money for the Cystic Fibrosis Trust.

 P&G led a campaign called "Moms from the Heart" in alliance with UNICEF to raise funds and awareness for programs that fostered early childhood development. The campaign helped P&G to achieve a strong double bottom-line result by strengthening pampers equity and sales while significantly reducing child mortality.

EVERYDAY LOW PRICING(EDLP)

It takes place at the retail level. A retailer holding this policy charges a constant low price with little or no price promotions and special sales. These constant prices eliminate week-to-week price uncertainty(Marketing Management-Kotler, Kelly, Koshi, Jha)

It is a pricing strategy that promises consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping; also called value pricing. EDLP saves retailers the time and expense of periodic price markdowns, saves manufacturers the cost of distributing and processing coupons, and is believed to generate shopper loyalty. (Fundamentals of Marketing- Stanton and Futrell)

Everyday low price ("EDLP") is a pricing strategy  promising consumers a low price without the need to wait for sale price events or comparison shop. EDLP saves retail stores the effort and expense needed to mark down prices in the store during sale events, and to market these events; and is believed to generate shopper loyalty

It is a trading practice in which periodic promotional discounts  are eliminated to provide consistently lower-than-customary prices.

Every Day Low Pricing (EDLP) strategy has proved to be a successful innovation resulting in higher profits to supermarkets adopting it in competition with Promotional Pricing (PROMO). Conventional wisdom attributes this success either to lower costs or to EDLP better serving time constrained consumers, while discouraging cherry pickers who seek promotions.( Rajiv Lal, Ram Rao- Stanford University,The University of Texas at Dalla)

“6 Ten” outlets also offer everyday discounts on groceries “Subhiksha” medicines and vegetable stores mentioned the

savings made by the customer on that days purchases Bharti Wal-mart’s “Easy Day” retail outlets sell all products

at discounted prices The “Electronics Store” sells all electronics lower than the

MRP Since the fall of 1991, when P&G moved many of its brands

to an everyday-low-pricing strategy (EDLP). For example, P&G eliminated trade promotions for Dawn dishwashing liquid and then set the brand's price to a standard average of $1.32, rather than pricing it at 99 [cents] one week and $1.49 next.

EXCLUSIVE DISTRIBUTION

Form of distribution that establishes on or a few dealers within a given area(Marketing-Lamb, Hair, McDaniel)

Use of single wholesaler or retailer to serve each territory(Marketing-Churchill and Peter)

Form of distribution where the supplier agrees to sell only to a particular middleman or retailer in a given market(Fundamentals of Marketing- Stanton and Futrell)

Severely limiting the number of intermediaries, in order to maintain control over the service level and outputs offered by resellers. (Marketing Management-Kotler, Kelly, Koshi, Jha)

Use of few outlets in a relatively large geographical area. It is suitable for products purchased infrequently, consumed over a longer period of time and require service or information to fit them to buyers needs.(Marketing-Pride,Fredell, Blotnicky,Grant)

Products such as Rolls Royce, Chris-Craft power boats, Pettibone tower cranes are distributed under exclusive arrangements.

Radio Shack has prospered by offering electronics manufacturers exclusivity within its stores

Manufacturers of farm machinery and large construction equipment frequently use exclusive distributorships.

Italian designer label Gucci controls its distribution to maintain its exclusive brand image

Patek Philippe watches are available only in a few select locations

EXPERIENTAL POSITIONING

The strategic process of understanding consumer desires , creating(designing) and delivering a particular form of experience, and communicating the firm’s proposed experience to consumers in way that differentiates the brand from

competitors in the consumer’s mind. (Consumer Behaviour-Blackwell,Engel)

The experiential platform which includes a dynamic, multi-sensory,multi-dimensional depiction of the desired experience (referred to as the “experiential positioning”) and a specification of the experiential value (“the experiential value promise”) that the customer can expect from the product or service.

Singapore Airlines focuses on delivering an extraordinary experience—“a great way to fly”—through outstanding service. The company has thought through every step of the customer experience, even in economy class.

Amazon.com provides a marvelous online shopping experience. The site has the right look and feel, as well as an amazing interface. Amazon.com is continuously improving on the experience it provides.

Drying net by surf excel detergent cake.

Appolo Tyres with Hand bag to carry the tyre easily.

Harpic nozzle pack for easy cleaning of closet of toilet.

FAD

A craze that is unpredictable, short-lived, and without social, economic and political significance(Marketing Management-Kotler, Kelly, Koshi, Jha)

A short-lived fashion that is usually based on some novelty feature (Fundamentals of Marketing- Stanton and Futrell)

Products that experience an intense but brief period of popularity(Marketing-Churchill and Peter)

A fashion that is taken up with great enthusiasm for a brief period of time; a craze.

A fad is a practice or interest followed for a time with exaggerated zeal. (Consumer Behaviour-Blackwell,Engel)

A desirable trend characterized with lots of enthusiasm and energy over a short period of time. Fads are often seen with common  consumer  items, especially around a holiday season (Basic Marketing- Cannon)

A Fad is an extraordinary appeal, the public adores, for a brief period in time.

Ex:The Beanie Baby ( a stuffed animal, made by Ty Warner Inc.) became a phenomenon in the late 1990s when Beanie Babies became both a fad and a collectible. The craze lasted through 1999 and slowly declined.

A growing group of American abstract Artists began the ‘Optical Art’ movement.  For about a year, these fashion followers only wore black and white.

Leveraged buy-outs (Takeover of a company or controlling interest in a company, using a significant amount of borrowed money) were used frequently in the 1980s for companies looking for acquire rivals, suppliers, and other related entities. In the late 1990s though, LBOs became less popular.

The spectacular vintage ties and skinny ties worn on the program Mad men on AMC(1960’s), turned into a huge fad in men’s fashion.

FAMILY BRANDING

Marketing of several products under the same brand name.(Marketing-Lamb, Hair, McDaniel)

Use of same brand name for the entire product line(Marketing-Churchill and Peter)

When all products are sold under one corporate name. The individual brands benefit from the overall brand awareness associated with the family brand. .(Marketing-Grewal and Levy)

The use of the same family or blanket brand name for all products in a firms product line(Fundamentals of Marketing- Stanton and Futrell)

Situation where the parent brand is already associated with multiple products through brand extensions. (Marketing Management-Kotler, Kelly, Koshi, Jha)

Sony’s family brands include music systems, TVs, DVD players, etc

Holiday Inn portfolio is as- Holiday Inn Select, Holiday Inn Suites, Holiday Inn Hotels, etc

Gillette Company uses the family brand Gillette Series for a line of men’s shaving products, deodorants and after-shaves.

General Electric Company (GE) brands its appliances prominently with the GE brand name.

All products sold through The Gap stores bear only The Gap brand name.

When Black and Decker purchased General Electrics’ line of small appliances, the Black and Decker brand was put on those appliances.

FEATURE

A fact or technical specification about a product. Marketers select product features by determining what their customers want their products to offer. (Marketing –Churchill and Peter)

Specifications about a product that enhance its value and supplementtheir basic function. (Marketing Management-Kotler, Kelly, Koshi, Jha)

Tiny spring in the handle of a GSK Flex Toothbrush, to help prevent overly vigorous brushing from damaging gums

Gillette’s Oral-B toothbrushes include a patch of clue bristles , whose fading indicates the time to change the brush

Extra chocolates, nuts, fudge and pieces of brownie in the Haagen-Dazs Triple Brownie Overload ice-cream

The Zen Estilo VXi model has airbags and electronic power steering.

FEATURE IMPROVEMENT

Adding new features, such as size , weight, materials, additives, and accessories that expand the products performance, versatility, safety or convenience(Marketing Management-Kotler, Kelly, Koshi, Jha)

Coca-cola replaced its old formula with the New Coke, a sweeter variation of the old drink

Bajaj introduced several models of Pulsar with improved looks, engine, power, etc

Pepsi and Coke offer drinks in different sizes-5ooml, 1 ltr, 1.5ltr, 2ltr

FORWARD INVENTION

Creating a new product to meet a need in another country(Marketing Management-Kotler, Kelly, Koshi, Jha)

The process of creating a new a product, or modifying an existing product in order to capture a new market. (International Marketing-Cateora Graham)

Haagen Dazs created an ice-cream flavour for sale solely in Argentina

Philips had to change the size of its coffeemakers in Japan to fit the size of their small kitchens

Quaker Oats researches the countries nutrition needs and formulates new products

BMW modifies the ground clearance of some of its cars in India in accordance to the roads

FRANCHISING

It is a form of licensing, in which the company (the franchiser) grants a franchisee the right to market its product, using its name, logo, methods of operation, advertising, products, and other elements associated with the franchisers business, in return for a financial commitment and an agreement to conduct business in accordance with the franchisers standard of operations.(Marketing Management-Kotler, Kelly, Koshi, Jha)

It is a rapidly growing form of licensing in which the franchisor provides a standard package of products, systems, and management services, and the franchisee provides ,market knowledge, capital and personal involvement in management. (International Marketing-Cateora Graham)

Subway, The UPS Store, Pizza Hut, KFC Corp.,etc are amongst the worlds top 10 global franchisers.

Holiday Inn Marriott, Mc Donalds are amongst the well known franchisers with international visibility.

FIXED PERSONALITY ASSOCIATION

A qualitative technique used by a moderator where images of people, places, or things are shown to participants and they are then asked to interpret the pictures around a given topic. The same images are shown in several sessions to different respondents so that results can be applied as norms.

FOREHEAD ADVERTISING

Forehead Advertising is an advertising concept that uses people's foreheads as advertising spaces. The concept was created by Justin Kapust through his organization, called Headvertise (Kapust-Allen Enterprises, now defunct) in late 2002Soon after its launch, and the media frenzy that came along with it, Ebay started hosting auctions for forehead advertising and other tattoo advertising.

Headvertise hired college students to run advertising campaigns for its clients on college campuses, where through affinity programs and exclusive marketing rights, many companies cannot advertise.

FORMAL SEARCHThis is a purposeful search after information in some systematic way. The information will be required to address a specific issue. Whilst this sort of activity may seem to share the characteristics of marketing research it is carried out by the manager him/herself rather than a professional researcher. Moreover, the scope of the search is likely to be narrow in scope and far less intensive than marketing research

FRONTIER OFFERINGSProducts and bundled services that sell at the lowest price in their performance range. If an offering provides both the lowest price and best performance, it dominates every other offering in the category.

FULL MARKET COVERAGE STRATEGYOne of the market-targeting strategies in which a company attempts to serve all customer groups (segment) with all the products they might need. Normally, very large firms can follow full market coverage strategy. Large companies can cover a whole market in two broad ways: through undifferentiated marketing or differentiated marketing.

GATEKEEPERA person who allows certain information to flow & restricts flow of some set of information. Parents play the role of gatekeeper in the selection of TV channels for children. Member of a decision-making unit who decides the limiting factors and constraints in the decision of purchase of a product. This person has an overall impact on the buying decision by specifying some factors and conditions under which a particular product can be bought .For example, the budget maybe fixed by the gatekeeper, the father to be say up to a max of 50,000 for a bike to be bought by the son.

GENERATION OF ALTERNATIVESThe process by which a consumer generates alternative solutions or identifies alternative products that help achieve a solution to the problem he has identified or satisfy a need. However, these alternative

solutions help the same level of utility that he would have achieved if he would have gone with the original solution or product

GENERIC BRANDNo-frills goods stocked by some retailers. These items usually receive secondary shelf locations, have little or no promotion support, are sometimes of less overall quality than other brands, are stocked in limited assortments, and have plain packages.

GEOGRAPHIC SEGMENTATIONGeographical segmentation divides markets into different geographical areas. Marketers use geographic segmentation because consumers in different areas may display certain characteristics and behaviours in that particular region, for example, in London UK certain parts of the West End of London are more affluent then the East End and you will find particular products sold in these regions based on their affluence. An area can be divided by the town, the region or the country. If you are an organisation working on a global scale you may divide by global regions such as Europe, North America, South America, Asia and Africa. Mcdonalds globally, sell burgers aimed at local markets, for example, burgers are made from lamb in India rather then beef because of religious issues. In Mexico more chilli sauce is added and so on.Market segmentation strategy whereby the intended audience for a given product is divided according to geographic units, such as nations, states, regions, counties, cities, or neighborhoods. Marketers will tailor marketing programs to fit the needs of individual geographic areas, localizing the products, advertising, and sales effort to geographic differences in needs and wants. Marketers will also study the population density or regional climate as factors of geographic segmentation.

GEOGRAPHIC INFORMATION SYSTEMS Geographic information systems (GIS) or geospatial information systems is a set of tools that captures, stores, analyzes, manages, and presents data that are linked to location(s). In the simplest terms, GIS is the merging of cartography, statistical analysis, and database technology. GIS may be used in archaeology, geography, cartography, remote sensing, land surveying, public utility management, natural resource management, precision agriculture, photogrammetry, urban

planning, emergency management, navigation, aerial video, and localized search engines.As GIS can be thought of as a system, it digitally creates and "manipulates" spatial areas that may be jurisdictional, purpose or application oriented for which a specific GIS is developed. Hence, a GIS developed for an application, jurisdiction, enterprise, or purpose may not be necessarily interoperable or compatible with a GIS that has been developed for some other application, jurisdiction, enterprise, or purpose. What goes beyond a GIS is a spatial data infrastructure (SDI), a concept that has no such restrictive boundaries.Therefore, in a general sense, the term describes any information system that integrates, stores, edits, analyzes, shares, and displays geographic information for informing decision making. GIS applications are tools that allow users to create interactive queries (user-created searches), analyze spatial information, edit data, maps, and present the results of all these operations. Geographic information science is the science underlying the geographic concepts, applications and systems. GIS can be studied in degree and certificate programs at many universities.

GEOGRAPHICAL PRICINGGeographical pricing, in marketing, is the practice of modifying a basic list price based on the geographical location of the buyer. It is intended to reflect the costs of shipping to different locations.There are several types of geographic pricing:FOB origin - The shipping cost from the factory or warehouse is paid by the purchaser. Ownership of the goods is transferred to the buyer as soon as it leaves the point of origin. It can be either the buyer or seller that arranges for the transportation.Uniform delivery pricing - (also called postage stamp pricing) - The same price is charged to all.Zone pricing - Prices increase as shipping distances increase. This is sometimes done by drawing concentric circles on a map with the plant or warehouse at the center and each circle defining the boundary of a price zone. Instead of using circles, irregularly shaped price boundaries can be drawn that reflect geography, population density, transportation infrastructure, and shipping cost.Basing point pricing - Certain cities are designated as basing points. All goods shipped from a given basis point are charged the same amount.

Freight-absorption pricing - The seller absorbs all or part of the cost of transportation. This amounts to a price discount, and is used as a promotional tactic.

GLOBAL FOCUS GROUPSFocus groups conducted using satellite video technology in which participants are located in different places, normally in different countries. Also called video focus groups.These are focus groups that instead of meeting face-to-face, carry out the group via a video conferencing link.

GLOBAL MARKETINGThe Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.” Oxford University Press’ Glossary of Marketing Terms.Here are three reasons for the shift from domestic to global marketing as given by the authors of the textbook, Global Marketing Management—3rd Edition by Masaaki Kotabe and Kristiaan Helsen, 2004.The “Four P’s” of marketing: product, price, placement, and promotion are all affected as a company moves through the five evolutionary phases to become a global company. Ultimately, at the global marketing level, a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan. Unless a company holds the same position against its competition in all markets (market leader, low cost, etc.) it is impossible to launch identical marketing plans worldwide.ProductA global company is one that can create a single product and only have to tweak elements for different markets. For example, Coca-Cola uses two formulas (one with sugar, one with corn syrup) for all markets. The product packaging in every country incorporates the contour bottle design and the dynamic ribbon in some way, shape, or form. However, the bottle or can also includes the country’s native language and is the same size as other beverage bottles or cans in that same country.Price

Price will always vary from market to market. Price is affected by many variables: cost of product development (produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, etc.), and much more. Additionally, the product’s position in relation to the competition influences the ultimate profit margin. Whether this product is considered the high-end, expensive choice, the economical, low-cost choice, or something in-between helps determine the price point.PlacementHow the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market. Using Coca-Cola as an example again, not all cultures use vending machines. In the United States, beverages are sold by the pallet via warehouse stores. In India, this is not an option. Placement decisions must also consider the product’s position in the market place. For example, a high-end product would not want to be distributed via a “dollar store” in the United States. Conversely, a product promoted as the low-cost option in France would find limited success in a pricey boutique.PromotionAfter product research, development and creation, promotion (specifically advertising) is generally the largest line item in a global company’s marketing budget. At this stage of a company’s development, integrated marketing is the goal. The global corporation seeks to reduce costs, minimize redundancies in personnel and work, maximize speed of implementation, and to speak with one voice. If the goal of a global company is to send the same message worldwide, then delivering that message in a relevant, engaging, and cost-effective way is the challenge.Effective global advertising techniques do exist. The key is testing advertising ideas using a marketing research system proven to provide results that can be compared across countries. The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximized. Market research measures such as Flow of Attention, Flow of Emotion and branding moments provide insights into what is working in an ad in any country because the measures are based on visual, not verbal, elements of the ad.

GOODNESS OF THE DEALan evaluation of whether or not the customer paid a fair price for a product. A good deal is where the customer pays a price that is less

than the fair price (as determined by the product’s relative performance.

GREY MARKETA grey market or gray market also known as parallel market is the trade of a commodity through distribution channels which, while legal, are unofficial, unauthorized, or unintended by the original manufacturer. The term gray economy, however, refers to workers being paid under the table, without paying income taxes or contributing to such public services as Social Security and Medicare. It is sometimes referred to as the underground economy or "hidden economy."A black market is the trade of goods and services that are illegal in themselves and/or distributed through illegal channels, such as the selling of stolen goods, certain drugs or unregistered handguns. The two main types of grey market are imported manufactured goods that would normally be unavailable or more expensive in a certain country and unissued securities that are not yet traded in official markets. Sometimes the term dark market is used to describe secretive, unregulated (though often technically legal) trading in commodity futures, notably crude oil in 2008. This can be considered a third type of "grey market" since it is legal, yet unregulated, and probably not intended or explicitly authorized by oil producers.

GREEN MARKETINGAccording to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term.[1] Other similar terms used are Environmental Marketing and Ecological Marketing.The legal implications of marketing claims call for caution. Misleading or overstated claims can lead to regulatory or civil challenges. In the USA, the Federal Trade Commission provides some guidance on environmental marketing claims

GUERRILLA MARKETINGThe concept of guerrilla marketing was invented as an unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget. Typically, guerrilla marketing campaigns are unexpected and unconventional; potentially interactive; and consumers are targeted in unexpected places. The objective of guerrilla marketing is to create a unique, engaging and thought-provoking concept to generate buzz, and consequently turn viral. The term was coined and defined by Jay Conrad Levinson in his book Guerrilla Marketing. The term has since entered the popular vocabulary and marketing textbooks.Guerrilla marketing involves unusual approaches such as intercept encounters in public places, street giveaways of products, PR stunts, any unconventional marketing intended to get maximum results from minimal resources. More innovative approaches to Guerrilla marketing now utilize cutting edge mobile digital technologies to really engage the consumer and create a memorable brand experience.

HETEROGENEOUS MARKETA market characterized by buyers with different needs and wants. A company utilizes a concentrated targeting strategy for this group. This market requires the company to divided the market into groups by a process called market segmentation. The company then develops a different marketing mix to satisfy each of these groups or segments.

Eg. Taking India as a market.

HEURISTICS

Heuristic or heuristics refers to experience-based techniques for problem solving, learning, and discovery. Heuristic methods are used to identify an optimal solution as rapidly as possible. Examples of this method include using a "rule of thumb", an educated guess, an intuitive judgment, or common sense.In more precise terms, heuristics are strategies using readily accessible, though loosely applicable, information to control problem solving in human beings and machines

HOME USAGE TESTProduct testing is, perhaps, the single-most-important type of consumer research any company ever conducts. A company with consistently superior products tends to consistently outperform its competitors in the marketplace.Achieving clear-cut product superiority in a category is the surest way to build brand share, engender customer loyalty, and boost profitability. Better products tend to command higher prices and be more responsive to advertising investments.

HOMOGENEOUS PREFERENCES:This refers to pattern of consumer preferences in terms of various attributes of a product or service. One of the preferences is known, as homogeneous preferences where all the consumers have roughly the same preferences. The market shows no natural segments.

HOMOGENOUS MARKETIn general, the notion that everything has identical characteristics. For example, a neighborhood might have a homogeneous culture, meaning everyone has similar income, religious preferences, and political views. In economics, it is used in a couple of different ways. One is for production, such that two or more goods are homogeneous if they are physically identical or at least viewed as identical by buyers. Another is for mathematical equations, such that an equation is said to be homogeneous if the independent variables are increased by a constant value, then the dependent variable is increased by a function of that value. In a marketing context, this is a market characterized by buyers with similar needs and wants. This group is targeted with an undifferentiated targeting strategy. The company uses only one marketing mix to satisfy this group of buyers.

HORIZONTAL MARKETING SYSTEM Two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity.

IN-STORE DEMONSTRATIONIn marketing, an in-store demonstration (or "demo" for short) is a promotion where samples of a product are distributed to customers within a store. The goal of an in-store demonstration is to introduce customers to the product in hopes of getting them to purchase that item. Products that often are sampled during in-store demonstrations are new products or new versions of already existing products that have recently been introduced to the commercial marketplace, and that the manufacturers are attempting to advertise.

Examples:1) The electronic and electrical appliances companies do in-store

demonstration.2) Clothes can be tried before purchasing in most of the

showrooms.

INDUSTRIAL PRODUCT

Industrial product are bought by individuals or organizations for further processing or for use in conducting a business. Eg) generators, drill presses, large computer systems, elevators, etc which help in industrial operations

INFLUENCER

Influencer member of a decision-making unit who has an impact on the buying decision but is not the decision maker. For example, a child may influence the choice of breakfast cereal, but the purchase decision is made by the parent. Influencers have varying levels of influence depending on the product and their relative status in the decision-making unit. A small child will have no influence on an automobile purchase. A teenager may have some influence and a spouse usually has a lot of influence on an automobile purchase decision. A person who explicitly or implicitly has some influence on the final buying decision of others. Mother plays role of influence in the purchase of chocolate

INFORMAL SEARCH

this describes the situation where a fairly limited and unstructured attempt is made to obtain information for a specific purpose. For example, the marketing manager of a firm considering entering the business of importing frozen fish from a neighbouring country may make informal inquiries as to prices and demand levels of frozen and fresh fish. There would be little structure to this search with the manager making inquiries with traders he/she happens to encounter as well as with other ad hoc contacts in ministries, international aid agencies, with trade associations, importers/exporters etc

INFORMATION MANAGEMENT PROCESSES

with many professionals having external information delivered to their desktops, from online services such as reuters or maid, and increasingly from the internet is easy to believe that users have all the information they need on tap. However, this is raw information and will need transforming into intelligence. Before that, however, this information must be classified, stored and made accessible - applying good practice principles of information resources management (irm).

INFORMATION SYSTEM   (IS)

An information system (IS) is any combination of information technology and people's activities using that technology to support operations, management, and decision-making.in a very broad sense, the term information system is frequently used to refer to the interaction between people, algorithmic processes, data and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) an organization uses, but also to the way in which people interact with this technology in support of business processes.Some make a clear distinction between information systems,and computer systems ict, and business processes. Information systems are distinct from information technology in that an information system is typically seen as having an ict component. Information systems are also different from business processes. Information systems help to control the performance of business processes.

Examples:

Transaction processing systemsOffice systemsDecision support systemsKnowledge management

INITIATOR

Initiator a person who first suggests or thinks of the idea of buying the particular product. The person who feels the need for the purchase of a product. Example, a child plays role of initiator in the purchase of a chocolate.

INSTITUTIONAL MARKET

Schools, markets, nursing homes, prisons and other institutions that must provide goods and services to people in their care.

INTEGRATED LOGISTICS SYSTEM

Materials management, material flows system, and physical distribution, abetted by information technology.

INTEGRATED MARKETING COMMUNICATIONS

A concept of marketing communications planning that recognizes the added value of a comprehensive plan.

INTELLIGENCE DEVELOPMENT PROCESSES

a good intelligence system is more than information. It is a recurring cycle of linking the needs of decision makers to the processes of turning the information into actionable intelligence.

INDIVIDUAL MARKETING

The ultimate level of segmentation leads to “segments of one,” “customized marketing,” or “one-to-one marketing.”

For centuries, consumers were served as individuals: The tailor made the suit and the cobbler designed shoes for the individual. Much business to-business marketing today is customized, in that a manufacturer will customize the offer, logistics, communications, and financial terms for each major account. Such technologies such as

computers, databases, robotic production, intranets and extranets, e-mail, and fax communication are permitting companies to return to customized marketing, also called “mass customization.”

Mass customization is the ability to prepare individually designed products and communications on a mass basis to meet each customer’s requirements. For example, Andersen Windows, a $1 billion Minnesota-based manufacturer of residential windows, turned to mass customization after additions to its product line led to fat, unwieldy catalogs and a bewildering array of choices for homeowners and contractors. Then the firm equipped 650 showrooms with an interactive computer catalog linked directly to the factory. Using this catalog, salespeople help customers customize each window, check the design for structural soundness, and generate a price quote. Andersen has also developed a “batch of one” manufacturing process in which everything is made to order, thus reducing its finished parts inventory (a major cost to the company).

Joseph Pine, author of Mass Customization, says, “Anything you can digitize, you can customize.” In fact, the Internet is bringing mass customization to an astonishing array of products. Mattel’s Barbie.com site invites girls to log on and design their own Barbie Pal doll by specifying skin tone, eye color, hairdo and hair color, clothes, accessories, and name. CDuctive, a hip, New York-based company, lets customers cut their own CDs online. If a customer likes acid jazz, he can click on the category, see the various titles, listen to a brief sample of each, and then click to order a CD with his chosen tunes.

Technology like this is transforming marketing from “a broadcast medium to a dialog medium,” allowing the customer to actively participate in the design of the product and offer. Although individual customers are taking more initiative in designing and buying products, marketers still need to influence the process in a variety of ways. They need toll-free phone numbers and e-mail addresses to enable buyers to reach them with questions, suggestions, and complaints; they must involve customers more in the product-specification process; and they need a Web site with complete, updated information about the company’s products, service guarantees, and locations.

IDEA GENERATION

The marketing concept holds that customer needs and wants are the logical place to start the search for new product ideas. Hippel has shown that the highest percentage of ideas for new industrial products originates with customers. Many of the best ideas come from asking customers to describe their problems with current products. For instance, in an attempt to grab a foothold in steel wool soap pads, 3M organized consumer focus groups and asked about problems with these products.

INFLUENCE MARKETINGInfluencer marketing, (also Influence Marketing) is a form of marketing that has emerged from a variety of recent practices and studies, in which focus is placed on specific key individuals (or types of individual) rather than the target market as a whole. It identifies the individuals that have influence over potential buyers, and orients marketing activities around these influencers.Influencers may be potential buyers themselves, or they may be third parties. These third parties exist either in the supply chain (retailers, manufacturers, etc.) or may be so-called value-added influencers (such as journalists, academics, industry analysts, professional advisers, and so on).Most discussion on the generic topic of social influence centres on compliance and persuasion in a social environment, as exemplified in Robert Cialdini’s book Influence: Science and Practice. In the context of Influencer Marketing, influence is less about argument and coercion to a particular point of view, and more about loose interactions between various parties in a community. Influence is often equated to advocacy, but may also be negative, and is thus related to concepts of promoters and detractors.

INFLUENCER MARKETING AS A MARKETING DISCIPLINEInfluencer Marketing, as increasingly practiced in a commercial context, comprises four main activities:Identifying influencers, and ranking them in order of importance.Marketing to influencers, to increase awareness of the firm within the influencer communityMarketing through influencers, using influencers to increase market awareness of the firm amongst target markets

Marketing with influencers, turning influencers into advocates of the firm.Influencer Marketing is enhanced by a continual evaluation activity that sits alongside the four main activities.Influencer Marketing is not synonymous with word of mouth marketing (WOM), but influence may be transmitted in this manner. Thus WOM is a core part of the mechanics of Influencer Marketing.There are substantial differences in the definition of what an influencer is. Peck defines influencers as "a range of third parties who exercise influence over the organization and its potential customers". Similarly, Brown and Hayes define an influencer as "a third party who significantly shapes the customer's purchasing decision, but may never be accountable for it.” The Word of Mouth Marketing Association defines an influencer as "A person who has a greater than average reach or impact through word of mouth in a relevant marketplace. Keller and Berry note that influencers are activists, are well-connected, have impact, have active minds, and are trendsetters, though this set of attributes is aligned specifically to consumer markets.

INTERMEDIARIESIntermediaries known as merchants—such as wholesalers and retailers—buy, take title to, and resell the merchandise. Agents—brokers, manufacturers’ representatives and sales agents—search for customers and may negotiate on the producer’s behalf but do not take title to the goods. Facilitators—transportation companies, independent warehouses, banks, and advertising agencies—assist in the distribution process but neither take title to goods nor negotiate purchases or sales. The most successful companies search for innovative marketing channels. The Conn Organ Company, for example, sells organs through merchants such as department and discount stores, drawing more attention than it ever enjoyed in small music stores. Similarly, Ohio-based Provident Bank reaches new mortgage customers by selling through the lendingtree.com Web site, which acts as a facilitator. Number of Intermediaries In deciding how many intermediaries to use, successful companies use one of three strategies:➤ Exclusive distribution means severely limiting the number of intermediaries. Firms such as automakers use this approach when they want to maintain control over the service level and service outputs offered by the resellers. Often it involves exclusive dealing

arrangements, in which the resellers agree not to carry competing brands.➤ Selective distribution involves the use of more than a few but less than all of the intermediaries who are willing to carry a particular product. In this way, the producer avoids dissipating its efforts over too many outlets, and it gains adequate market coverage with more control and less cost than intensive distribution. Nike, for example, sells its athletic shoes and apparel through seven types of outlets:(1) specialized sports stores, which carry a special line of athletic shoes; (2) general sporting goods stores, which carry a broad range of styles; (3) department stores, which carry only the newest styles; (4) mass-merchandise stores, which focus on discounted styles; (5) Nike town stores, which feature the complete line; (6) factory outlet stores, which stock mostly seconds and closeouts, and (7) the popular Fogdog Sports site (www.fogdog.com), its exclusive Web retailer.➤ Intensive distribution consists of the manufacturer placing the goods or services in as many outlets as possible. This strategy is generally used for items such as tobacco products, soap, snack foods, and gum, products for which the consumer requires a great deal of location convenience.

INTEGRATED MARKETINGWhen all of the company’s departments work together to serve the customers’ interests, the result is integrated marketing. Integrated marketing takes place on two levels.First, the various marketing functions—sales force, advertising, customer service, product management, marketing research—must work together. All of these functions must be coordinated from the customer’s point of view.Second, marketing must be embraced by the other departments. According toDavid Packard of Hewlett-Packard: “Marketing is far too important to be left only tothe marketing department!” Marketing is not a department so much as a companywide orientation. Xerox, for example, goes so far as to include in every job description an explanation of how each job affects the customer. Xerox factory managers know that visits to the factory can help sell a potential customer if the factory is clean and efficient. Xerox accountants know that customer attitudes are affected by Xerox’s billing accuracy. To foster teamwork among all departments, the company must carry out internal marketing as well as external marketing. External marketing is

marketing directed at people outside the company. Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. In fact, internal marketing must precede external marketing. It makes no sense to promise excellent service before the company’s staff is ready to provide it.Managers who believe the customer is the company’s only true “profit center” consider the traditional organization chart—a pyramid with the CEO at the top, management in the middle, and front-line people and customers at the bottom—obsolete.Master marketing companies invert the chart, putting customers at the top. Next in importance are the front-line people who meet, serve, and satisfy the customers; under them are the middle managers, who support the front-line people so they can serve the customers; and at the base is top management, whose job is to hire and support good middle managers.

INTERNAL MARKETINGInternal marketing (IM) is a process that occurs within a company or organization whereby the functional process aligns, motivates and empowers employees at all management levels to deliver a satisfying customer experience. Over recent years internal marketing has increasingly been integrated with employer branding, and employer brand management, which strives to build stronger links between the employee brand experience and customer brand experience. According to Burkitt and Zealley, "the challenge for internal marketing is not only to get the right messages across, but to embed them in such a way that they both change and reinforce employee behaviour".

INTERNAL MARKETING-ORIENTED BUSINESS The following are the features of an internal marketing-oriented business:Creating enabling culture: this is done when employees are empowered by management through allowing creativity, innovation, allowing initiatives and accountability and responsibility of their decisions.Practicing participative hiring: that is involving current employees in the process of hiring new employees.Ensuring equitable recognition and reward: business must exercise employee recognition with reward to what employee has achieved.

Demonstrating fairness during hard times: fair treatment of employees when faced with hard times and difficult moments like death of the near family members. This can be achieved by setting aside emergency funds.Good organization structure that allows learning, total quality management and re-engineering.Benefits of Internal Marketing:Encourages the internal market (employees) to perform better;Empowers employees and gives them accountability and responsibility;Creates common understanding of the business organisation;Encourages employees to offer superb service to clients by appreciating their valuable contribution to the success of the business;Helps non-marketing staff to learn and be able to perform their tasks in a marketing-like manner;Improves customer’s retention and individual employee development;Integrates business culture, structure, human resources management, vision and strategy with the employees' professional and social needs;Creates good coordination and cooperation among departments of the business.

INTERNAL BRANDINGInternal Branding is a concept that merges the disciplines of marketing and human resources. Developed by Dr Nikolaus Eberl and Herman Schoonbee as an academic discipline, Internal Branding is about aligning employee commitment to delivering the brand promise of the organisation.

The Role of Internal BrandingNothing kills a poor product faster than good advertising.

Retaining clients over time requires not only that they have a positive experience with the brand, but also that they can identify with the brand character – this being the people in the company and the degree to which they can be trusted to deliver the brand promise.

The Janus Effect of Internal BrandingClearly, a company’s brand promise and its brand character

must be linked and compatible. There is a phenomenon in organizations that can be termed the ‘Janus Effect.’ Janus was the Roman god of initiation and closure. As such, he was seen as a god of

the doorway and depicted with two faces, one facing out and one facing in.

The Janus Effect in organizations represents a simple but profound proposition: The face a company presents to its customers and the general public is in large part a reflection of the face it presents to its employees. Thus, the way customers view the company is significantly enhanced, or diminished, by the way employees view the company.

Measuring Brand StrengthThe strength of a brand is built both through communication and

the experience with the brand. Brand strength initially depends on the Hygiene Factors, i.e. awareness and consideration, which are driven by communication and influenced by acquisition drivers such as functionality.Strengthening or weakening the brand then depends on the Differentiating Factors, i.e. brand preference and brand loyalty, which are formed from the client’s experience with the brand and influenced by the retention drivers.

Measuring Brand ValueIf your brand is listed on the stock exchange, the answer is easy

– your market capitalisation less assets. In the case of the world’s leading brand, Coca-Cola, the brand value exceeds the asset value by nearly 150%.As Richard Branson put it at his recent visit to South Africa, “the brand is everything. If the brand is well-respected and trusted, people will give it a try.” The Virgin Brand is a classic example of brand value exceeding the asset base by far. In fact, the Virgin brand has now become so valuable that Branson has recently ventured into space. In September 2004, he announced that Virgin had signed a deal to offer the world's first commercial flights to space under the brand ‘Virgin Galactic’.

INTERNAL RECORDS SYSTEMMarketing managers rely on internal reports on orders, sales, prices, costs, inventory levels, receivables, payables, and so on. By analyzing this information, they can spot important opportunities and problems.THE ORDER-TO-PAYMENT CYCLE

The heart of the internal records system is the order-to-payment cycle. Sales representatives, dealers, and customers dispatch orders to the firm. The sales department prepares invoices and transmits copies to various departments. Out-of-stock items are back ordered. Shipped items are accompanied by shipping and billing documents that are sent to various departments. Today’s companies need to perform these steps quickly and accurately. Customers favor those firms that can promise timely delivery. Customers and sales representatives fax or e-mail their orders. Computerized warehouses fulfill these orders quickly. The billing department sends out invoices as quickly as possible. An increasing number of companies are using electronic data interchange (EDI) or intranets to improve the speed, accuracy, and efficiency of the order-to-payment cycle. Retail giant Wal-Mart tracks the stock levels of its products and its computers send automatic replenishment orders to its vendors.SALES INFORMATION SYSTEMSMarketing managers need up-to-the-minute reports on current sales. Armed with laptop computers, sales reps can access information about prospects and customers and provide immediate feedback and sales reports. An ad for Sales CTRL, a sales force automation software package, boasts, “Your salesperson in St. Louis knows what Customer Service in Chicago told their customer in Atlanta this morning. Sales managers can monitor everything in their territories and get current sales forecasts anytime.”Sales force automation (SFA) software has come a long way. Earlier versions mainly helped managers track sales and marketing results or acted as glorified datebooks. Recent editions have put even more knowledge at marketers’ fingertips, often through internal “push” or Web technology, so they can give prospective customers more information and keep more detailed notes. Here are three companies that are using computer technology to design fast and comprehensive sales reporting systems:■ Ascom Timeplex, Inc. Before heading out on a call, sales reps at this telecommunications equipment company use their laptop computers to dial into the company’s worldwide data network. They can retrieve the latest price lists, engineering and configuration notes, status reports on previous orders, and e-mail from anywhere in the company. And when deals are struck, the laptop computers record each order, double-check the order for errors, and send it electronically to Timeplex headquarters in Woodcliff Lake, New Jersey.

■ Alliance Health Care Formerly called Baxter, Alliance supplies hospital purchasing departments with computers so that the hospitals can electronically transmit orders directly to Alliance. The timely arrival of orders enables Alliance to cut inventories, improve customer service, and obtain better terms from suppliers for higher volumes. Alliance has achieved a great advantage over competitors, and its market share has soared.■ Montgomery Security In 1996, San Francisco–based Montgomery Security was in a bind. To remain competitive in the financial sector, this Nations Banks subsidiary had to find a way for more than 400 finance, research, and Gathering Information and Measuring Market Demand sales or trading employees to share information about companies whose stock they were considering taking public. Yet all of the departments at Montgomery had different database formats for their records; some even kept files on notepads. The company solved the problem with Sales Enterprise Software from Siebel Systems. It gave Montgomery significant gains in productivity. With a common database format, everyone could share information and keep confidential information secure. The company’s marketing information system should represent a cross between what managers think they need, what managers really need, and what is economically feasible. An internal MIS committee can interview a cross-section of marketing managers to discover their information needs. Some useful questions are:1. What decisions do you regularly make?2. What information do you need to make these decisions?3. What information do you regularly get?4. What special studies do you periodically request?5. What information would you want that you are not getting now?6. What information would you want daily? Weekly? Monthly? Yearly?7. What magazines and trade reports would you like to see on a regular basis?8. What topics would you like to be kept informed of?9. What data analysis programs would you want?10. What are the four most helpful improvements that could be made in the present marketing information system?

LABELLING

Every physical product must carry a label, which may be a simple tag attached to the product or an elaborately designed graphic that is part of the package. Labels perform several functions. First, the label identifies the product or brand—for instance, the name Sunkist stamped on oranges. The label might also grade the product, the way canned peaches are grade labelled A, B, and C. The label might describe the product: who made it, where it was made, when it was made, what it contains, how it is to be used, and how to use it safely. Finally, the label might promote the product through attractive graphics.Labels eventually become outmoded and need freshening up. The label on Ivory soap has been redone 18 times since the 1890s, with gradual changes in the size and design of the letters. The label on Orange Crush soft drink was substantially changed when competitors’ labels began to picture fresh fruits, thereby pulling in more sales. In response, Orange Crush developed a label with new symbols to suggest freshness and with much stronger and deeper colours. Legal concerns about labels and packaging stretch back to the early 1900s and continue today. The Food and Drug Administration (FDA) recently took action against the potentially misleading use of such descriptions as “light,” “high beer,” and “low fat.” Meanwhile, consumerists are lobbying for additional labelling laws to require open dating (to describe product freshness), unit pricing (to state the product cost in standard measurement units), grade labelling (to rate the quality level), and percentage labelling (to show the percentage of each important ingredient). Some tangible products that incorporate packaging and labels also involve some service component, such as delivery or installation. Therefore, marketers must be skilful not only in managing product lines and brands, but also in designing and managing services.

LEARNINGWhen people act, they learn. Learning involves changes in an individual’s behaviour that arise from experience. Most human behavior is learned. Theorists believe that learning is produced through the interplay of drives, stimuli, cues, responses, and reinforcement. A drive is a strong internal stimulus that impels action. Cues are minor stimuli that determine when, where, and how a person responds.

Suppose you buy an IBM computer. If your experience is rewarding, your response to computers and IBM will be positively reinforced. Later, when you want to buy a printer, you may assume that because IBM makes good computers, it also makes good printers. You have now generalized your response to similar stimuli. A countertendency to generalization is discrimination, in which the person learns to recognize differences in sets of similar stimuli and adjust responses accordingly. Applying learning theory, marketers can build up demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement.

LEARNING INTERNET PURCHASINGInternet purchasing. By 2003, business-to-business buying on the Internet is projected to reach $1 trillion per year (compared with a projected $108 billion for consumer buying).The move to Internet purchasing has dramatic and far-reaching implications. Companies are not only posting their own Web pages to sell to business buyers, they are establishing Intranets for internal communication and extranets to link with regular suppliers and distributors. So far, most businesses are using extranets to buy MRO supplies. However, a growing number, such as General Electric, are preparing to buy nearly all supplies on-line to shave transaction and personnel costs, reduce time between order and delivery, and consolidate purchasing. In fact, GE Information Services is a leader in helping GE internal business units and outside companies use the Internet to buy from and sell to other businesses; its Trading Process Network lets companies buy raw materials, components, and just about anything else with a few clicks of the mouse. Internet purchasing can help forge closer relations between partners and buyers, and it levels the playing field between large and small suppliers. At the same time, it can potentially erode supplier-buyer loyalty and open the door to possible security disasters.

LIFESTYLELifestyle is a term to describe the way a person lives, which was originally coined by Austrian psychologist Alfred Adler in 1929. The current broader sense of the word dates from 1961.[1] A set of behaviours, and the senses of self and belonging which these

behaviours represent, are collectively used to define a given lifestyle. The term is defined more broadly when used in politics, marketing, and publishing.A lifestyle is a characteristic bundle of behaviours that makes sense to both others and oneself in a given time and place, including social relations, consumption, entertainment, and dress. The behaviours and practices within lifestyles are a mixture of habits, conventional ways of doing things, and reasoned actions.A lifestyle typically also reflects an individual's attitudes, values or worldview. Therefore, a lifestyle is a means of forging a sense of self and to create cultural symbols that resonate with personal identity. Not all aspects of a lifestyle are entirely voluntaristic. Surrounding social and technical systems can constrain the lifestyle choices available to the individual and the symbols she/he is able to project to others and the self.The lines between personal identity and the everyday doings that signal a particular lifestyle become blurred in modern society.[3] For example, "green lifestyle" means holding beliefs and engaging in activities that consume fewer resources and produce less harmful waste (i.e. a smaller carbon footprint), and deriving a sense of self from holding these beliefs and engaging in these activities. Some commentators argue that, in modernity, the cornerstone of lifestyle construction is consumption behaviour, which offers the possibility to create and further individualize the self with different products or services that signal different ways of life.In business, "lifestyles" provide a means by which advertisers and marketers endeavour to target and match consumer aspirations with products, or to create aspirations relevant to new products. Therefore marketers take the patterns of belief and action characteristic of lifestyles and direct them toward expenditure and consumption. These patterns reflect the demographic factors (the habits, attitudes, tastes, moral standards, economic levels and so on) that define a group. As a construct that directs people to interact with their worlds as consumers, lifestyles are subject to change by the demands of marketing and technological innovation.In the magazine and television industries, "lifestyle" is used to describe a category of publications or programs.

LINE FILLINGMaruti Suzuki is following the product line strategy of Line Filling. Line Filling is a strategy where the company introduces new products within the same (existing) price range.Maruti Suzuki recently launched a series of brands in the hatchback segment. A look at the price ranges of hatchback brands of Maruti will give you a clear picture of Line Filling.Example:Maruti 800 - Rs 2,00,000 - Rs 2,12000Maruti Alto - Rs 2,22,000 - Rs 2,70,000Maruti Estilo - Rs 3,17,000 - Rs 3,98,000Maruti Wagon R - Rs 3,18,000 - Rs 4,32,000Maruti A Star - Rs 3,40,000 - Rs 4,12,000Maruti Ritz - Rs 3,89,000 - Rs 5,10,000Maruti Swift - Rs 4,06,000 - Rs 5,20,000From the price ranges, it is evident that there is a significant overlap among various brands.The question is why Maruti chose to bring out products with similar price ranges. Another question is whether this overlap will create cannibalization among these brands.There are several reasons for such a line filling strategy. According to Prof. Philip Kotler, firms adopt this strategy fora. Incremental Profitsb.Satisfy Dealers who complain about lost sales because of missing items in the linec.Utilize existing capacityd.Try to become a full-line companye.Try to plug holes to keep the competitors away.In the case of Maruti, more than one reasons prompt it to fill the line. Maruti Suzuki has tremendous brand equity in the Indian market. Hence having a full line catering to all segments of consumers offers tremendous advantage to the company.There are customers (like me) who would like to buy a car from Maruti. Having various offerings at various price points keeps that customers happy and make them stick to the company. If I want to upgrade to a bigger car, I have a choice or a A star or a Wagon R or a Ritz or a Swift. In such a scenario, I may not go in to a competitor's product.Another reason for Maruti's line filling is to keep out the competitors. The company is facing lot of competition in the hatchback segment. At the lower end Nano may give Alto and 800 a run for its money. Santro, i10 and Spark is giving tough competition for mid-range hatchbacks

and products like Fabia, Palio,Punto,i20 are giving competition at the higher segment of the hatchback market. Hence to keep the market share intact , Maruti is keeping a full line of brands covering various price points.When there are brands which has similar price points, it is natural that some sort of cannibalization will happen. When Ritz was launched, it definitely took away some customers of Swift. But Maruti can be happy that the customer has bought its product rather than that of its competitor.Regarding the profits, Maruti is one of the lowest cost producer in the automobile industry. This low cost base enable the firm to make a profit irrespective of cannibalization.One of the critical factor that a firm should consider while line filling is the Differentiation. There has to be a just-noticable difference between the offerings other wise consumers will get confused . In the case of Maruti brands, there is a clear differentiation either interms of design or performance between these brands.Line Filling is the strategy adopted by Maruti Suzuki to retain its grip in the Indian market. But in the Indian Automobile industry , may be only Maruti can do it.

LINE EXTENSIONA product line extension is the use of an established product’s brand name for a new item in the same product category.Line Extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors, forms, colors, added ingredients, package sizes. This is as opposed to brand extension which is a new product in a totally different product category.Line extension occurs when the company lengthens its product line beyond its current range. The company can extend its product line down-market stretch, up-market stretch, or both ways.Down-Market Stretch A company positioned in the middle market may want to introduce a lower-priced line for any of the three reasons:1. The company may notice strong growth opportunities as mass retailers such as Wal-Mart, Best Buy, and others attract a growing number of shoppers who want value-priced goods.

2. The company may wish to tie up lower-end competitors who might otherwise try to move up-market. If the company has been attacked by a low-end competitor, it often decides to counterattack by entering the low end of the market.3. The company may find that the middle market is stagnating or declining.Up-Market StretchCompanies may wish to enter the high end of the market for more growth, higher margins, or simply to position themselves as full-line manufacturers. Many markets have spawned surprising upscale segments: Starbucks in coffee, Haagen-Dazs in ice cream and Evian in bottled water. Leading Japanese auto companies have each introduced an upscale automobile: Toyota's Lexus, Nissan's Infiniti, and Honda's Acura. Note that they invented entirely new names rather than using or including their own names.Two-Way StretchCompanies serving the middle market might decide to stretch their line in both directions. Texas Instruments (TI) introduced its first calculators in the medium-price-medium-quality end of the market. Gradually, it added calculators at the lower end taking the share from Bowmar, and at the higher end to compete with Hewlett-Packard. This two-way stretch won Texas Instruments (TI) an early market leadership in the hand-calculator market.Examples includeZen LXI, Zen VXI,Surf, Surf Excel, Surf Excel Blue,Splendour, Splendour PlusCoca-Cola, Diet Coke, Vanilla Coke,Clinic All Clear, Clinic PlusReese's Peanut Butter Cups, Reese's Pieces and Reese's Puff Cereal

MACRO MARKETING ENVIRONMENT An organization's macro environment consists of nonspecific aspects in the organization's surroundings that have the potential to affect the organization's strategies. When compared to a firm's task environment, the impact of macro environmental variables is less direct and the organization has a more limited impact on these elements of the environment. It includes factors such as demography, economy, natural forces, technology, politics, and socio-culture.DEMOGRAPHIC FACTORS: It refers to studying human populations in terms of size, density, location, age, gender, race, and occupation. This

is a very important factor to study for marketers and helps to divide the population into market segments and target markets.

Example:• Volkswagen sales in the United States rose from under 50,000 cars in 1993 to over 300,000 a decade later partly as a result of a "Drivers Wanted" ad campaign that targeted fun-loving or youthful drivers. Rather than appealing to the mass market, VW went after a younger demographic willing to spend a little extra on a Volkswagen because of the car's German engineering, sportier image, and versatility. The voiceover on the introductory TV spot identifies the target audience by saying, "On the road of life, there are passengers and there are drivers."• Children are not allowed in France to work in ads • In country like Japan where average age on higher side products like insurance pertaining to pension, retirement benefits are in high demand, where as in country like India where major age group is young child care policies .• As in India no of working women increasing day by day so the products like fast food, ready to eat meals, women formal apparels are in high demand.• As concept of nuclear families increasing, consumer goods companies like LG see potential for growth.

COMPETITIVE FACTORS: It is a crucial factor where the company does its share of research on the product already available in the market before launching its product. No company enters market without competition.Example:Himani Boro plus entered the market when Boroline could not fulfil the demand of the market.

TECHNO-LEGAL FACTOR: The techno-legal environment is perhaps one of the fastest changing factors in the macro environment. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. As these markets develop it can create new markets and new uses for products. It also requires a company to stay ahead of others and update their own technology as it becomes outdated.

Example:• In an ambitious endeavour, Samsung had launched a digital home business. In Korea, Samsung has 6,000 networked homes that are outfitted with Internet-enabled ovens, refrigerators, security cameras, and wall-mounted flat-panel displays. Samsung is looking to take the idea abroad. • Left hand side –right hand side drivers• Cdma card used in Japan• Social security number in USA• UID no in India• Blackberry case-messages have to decrypted by government of India• Fuel-98-99% octane fuel• Harley Davidson changed engine in India

Information technology (IT) is "the study, design, development, application, implementation, support or management of computer-based information systems, particularly software applications and computer hardware", according to the Information Technology Association of America (ITAA).[1] IT deals with the use of electronic computers and computer software to securely convert, store, protect, process, transmit, input, output, and retrieve information.Innovations Innovation can be seen as the process that renews something that exists and not, as is commonly assumed, the introduction of something new.Discovery is the act of detecting something new.The Internet is a global system of interconnected computer networks and serves billions of users worldwide. It is a network of networks that consists of millions of private, public, academic, business, and government networks, of local to global scope, that are linked by a broad array of electronic and optical networking technologies.Rate of Technology transfer - Technology transfer is the process of sharing of skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials or services. It is closely related to (and may arguably be considered a subset of) knowledge transfer.

Rate of Obsolescence: Obsolescence is the state of a being which occurs when an object, service or practice is no longer wanted even though it may still be in good working order. Obsolescence frequently occurs because a replacement has become available that is superior in one or more aspects. Obsolete refers to something that is already disused or discarded, or antiquated. Typically, obsolescence is preceded by a gradual decline in popularity.

POLITICO-LEGAL: Marketing decisions are strongly affected by developments in the political and legal environment. This environment is composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. Sometimes these laws also create new opportunities for business. For example, mandatory recycling laws have given the recycling industry a major boost and spurred the creation of dozens of new companies making new products from recycled materials.

Example:• Norway bans several forms of sales promotion—trading stamps, contests, and premiums— as inappropriate or "unfair" instruments for promoting products.• Thailand requires food processors selling national brands to market low-price brands also, so that low-income consumers can find economy brands.• In India we cannot sell electric appliances.• Danger sign on cigarette packs• Pricing of medicines is regulated• Control on petroleum and diesel prices

Taxation policy - Tax policy is the government's approach to taxation. Policymakers debate the nature of the tax structure they plan to implement (i.e., how progressive or regressive) and how they might affect individuals and businesses (i.e., tax incidence).

Labour law (or "labour", or "employment" law) is the body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations. As such, it mediates many aspects of the relationship between trade unions, employers and employees.

Public policy can be generally defined as the course of action (or inaction) taken by the state with regard to a particular issue. Other scholars define it as a system of "courses of action, regulatory measures, laws, and funding priorities concerning a given topic promulgated by a governmental entity or its representatives."Public policy is commonly embodied "in constitutions, legislative acts, and judicial decisions."

Legislation (or "statutory law") is law which has been promulgated (or "enacted") by a legislature or other governing body, or the process of making it. (Another source of law is judge-made law or case law.) Before an item of legislation becomes law it may be known as a bill, and may be broadly referred to as "legislation" while it remains under consideration to distinguish it from other business. Legislation can have many purposes: to regulate, to authorize, to proscribe, and to provide (funds), to sanction, to grant, to declare or to restrict.

SOCIO-CULTURAL ENVIRONMENT: Purchasing power is directed toward certain goods and services and away from others according to people's tastes and preferences. Society shapes the beliefs, values, and norms that largely define these tastes and preferences. People absorb, almost unconsciously, a worldview that defines their relationships to themselves, to others, to organizations, to society, to nature, and to the universe. Examples:• Colour of products in Islamic country is dominantly green for eg Colgate, thumbs up.• McDonald use yellow colour for the face of its mascot Ronald in south East Asian country and white across the world as white colour considered as sickness.• South Asian countries like Thailand uses more vibrant colours as compared to country like France use subtle shades.• Phillips launched electric shavers in Japan they failed in miserably because the size of palm of average Japanese is smaller than men from other nations.• HMT, moved to countries like Vietnam and Kenya as they have to modify the size of tractor because average size of farmer is 5ft and 6ft respectively.

• Shopping trends of various countries are persuaded by festive seasons for example in India people tend to shop around dhanteras, Hyderabad-Bangalore side people shop during ramzan.Social mobility refers to the degree to which an individual or group's status is able to change in terms of position in the social hierarchy. To this extent it most commonly refers to material wealth and the ability of an agent to move up the class system.

Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods or services in ever greater amounts. The term is often associated with criticisms of consumption starting with Thorsten Veblenor, more recently by a movement called Enoughism. Veblen's subject of examination, the newly emergent middle class arising at the turn of the twentieth century, comes to full fruition by the end of the twentieth century through the process of globalization. Lifestyle changes: Adoption of new products especially due to change in income levels of a household.Level of Education: Knowledge of products and their availability along with the know – how of implications of using particular product is determined by the level of education.Distribution of Income: Income distribution is how a nation’s total economy is distributed amongst its populationEconomic: Markets require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability. Marketers Markets require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability.Example:An economic issue of increasing importance was the migration of manufacturers and service jobs offshore. Outsourcing was seen as a competitive necessity by many firms, but as a cause of unemployment by many domestic workers. For example, in December 2003, IBM decided to move the jobs of nearly 5,000 programmers to India and China. GE moved much of its research and development overseas. Microsoft, Dell, American Express.EXAMPLES• Pesticides prices are controlled by government so foreign investor are not able to enter Indian market.

• Petrol and diesel prices are regulated in India• CRR and SLR ratio fixed by RBI which indirectly affects lending capacity of banks• FDI and FII Limits set by government• During recession, companies had to keep their project on hold as there was no money in market.• During 1991, after liberalization of Indian economy lot of foreign companies entered Indian market.

Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.Disposable income is total personal income minus personal current taxes. In national accounts definitions, personal income, minus personal current taxes equals disposable personal income. Subtracting personal outlays (which includes the major category of personal (or, private) consumption expenditure) yields personal (or, private) savings.Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as: "A person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed."Business cycle (or economic cycle) refers to economy-wide fluctuations in production or economic activity over several months or years. These fluctuations occur around a long-term growth trend, and typically involve shifts over time between periods of relatively rapid economic growth (expansion or boom), and periods of relative stagnation or decline (contraction or recession).Energy availability and cost – This is self explanatory.

MAINTENANCE MARKETINGIt is a type of marketing employed in a condition where the industry has a full demand. That is the demand of the product is equal to the

supply by the industry. The marketers have to maintain everything to retain their position, as any slight mistake can severely affect the company’s performance. They have to maintain their:• Quality• Production• Distribution• Warehouse• Sales• Competitors• TechnologyExamples:• Johnson & Johnson is leaders in child segment since a long time• Boroline lost its market to boroplus due to lack of maintenance• Maggi noodles is losing market against Top Ramen gradually due

to reduction in its quality.• Kissan ketchup has lost the market against Maggi ketchup due to the same reason

MARKET ANALYSISMarket analysis is a documented investigation of a market that is used to inform a firm's planning activities particularly around decisions of inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, and many other aspects of a company. Key success factorsThe goal of a market analysis is to determine the attractiveness of a market, both now and in the future. Organizations evaluate the future attractiveness of a market by gaining an understanding of evolving opportunities and threats as they relate to that organization's own strengths and weaknesses.Organizations use the findings to guide the investment decisions they make to advance their success. The findings of a market analysis may motivate an organization to change various aspects of its investment strategy. Affected areas may include inventory levels,a work force expansion/contraction, facility expansion, purchases of capital equipment, and promotional activities.

Market segmentsMarkets are not uniform. Therefore it is also important for investors to identify and evaluate the various segments that make up the total market. This analysis helps organizations determine which areas

account for the greatest share of the market's growth and are more susceptible to change. This information, in turn, helps them pinpoint the most promising opportunities within the overall market and guides the choice of specific investments.

Market profitabilityWhile different organizations in a market will have different levels of profitability, they are all similar to different market conditions. Michael Porter devised a useful framework for evaluating the attractiveness of an industry or market. This framework, known as Porter's five forces, identifies five factors that influence the market profitability:

Buyer powerSupplier powerBarriers to entryThreat of substitute productsRivalry among firms in the industry.

MARKET INTELLIGENCE (MI)

Market intelligence (MI), according to Cornish, “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers); to determine the current and future needs and preferences, attitudes and behaviour of the market; and to assess changes in the business environment that may affect the size and nature of the market in the future.”Market Intelligence is about providing a company with a view of a market using existing sources of information to understand what is happening in a market place, what the issues are and what the likely market potential is.Market intelligence (MI) is “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers); to determine the current and future needs and preferences, attitudes and behaviour of the market; and to assess changes in the business environment that may affect the size and nature of the market in future.”Marketing Intelligence has the capacity to be at the forefront in contributing to the development of a business environment through strategic research, risk and policy analysis, credit-rating documentation, storage, publication, reporting, and communication of reliable, timely, and objective business information. It incorporates information from customer analysis and industry analysis as well as general market conditions.

In other words, marketing intelligence calls for understanding, analyzing and assessing the internal and external environment related to a company’s customers, competitors, markets, and industry to enhance the decision-making process. This would require the integration of competitive intelligence, marketing research, market analysis, and business and financial analysis information.MI’s main use is to identify successful new product developments early in the process to create company growth and maximize revenues by finding a balance between costs and prices of products. By using this knowledge about the external environment, companies can successfully innovate to stay ahead of the competition. MI is critical for helping with the new product development stage of the product lifecycle, which is crucial for product.Market Intelligence can be divided into two spheres

Market Intelligence based on external data Market Intelligence based on internal data

Often Market Intelligence relies purely on external data such as analysts reports, but there is often a great deal of untapped information internally that would give you an insight into your market, from sources such as databases and prospect lists, and an holistic view can prove very insightful.

Internal reporting systems:

All enterprises which have been in operation for any period of time have a wealth of information. However, this information often remains under-utilised because it is compartmentalised, either in the form of an individual entrepreneur or in the functional departments of larger businesses. That is, information is usually categorised according to its nature so that there are, for example, financial, production, manpower, marketing, stockholding and logistical data. Often the entrepreneur, or various personnel working in the functional departments holding these pieces of data, does not see how it could help decision makers in other functional areas. Similarly, decision makers can fail to appreciate how information from other functional areas might help them and therefore do not request it.

The internal records that are of immediate value to marketing decisions are: orders received, stockholdings and sales invoices. These are but a few of the internal records that can be used by marketing managers, but even this small set of records is capable of generating a great deal of information.

MARKET PLACE

A marketplace is the space, actual, virtual or metaphorical, in which a market operates. The term is also used in a trademark law context to denote the actual consumer environment, ie. the 'real world' in which products and services are provided and consumed.

A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world.• In North America such markets fell out of favour, but renewed interest in local food has caused the reinvention of this type of market, called farmers' markets, in many towns and cities.• In Europe, especially in France and Britain, street markets, as well as "marketplaces" (covered places where merchants have stalls, but not entire stores) are commonplace. Both resellers and producers sell their wares to the public.• In Australia, the largest "open air" market is the Queen Victoria Market - at seven hectares (17 acres), in Melbourne, which is also the largest in the Southern Hemisphere.• Markets are often temporary, with stalls only present for one or two days a week ("market days"), however some (such as Camden Market in London, UK) are open every day of the week. Such markets are normally specialist—the various stalls of Camden Market, along with the shops associated with it, sell a variety of alternative lifestyle products ranging from clothes and jewellery to CDs, instruments and furniture. An example of a large market is Chatuchak weekend market in Bangkok.• Some large markets have become permanent institutions comparable to shopping malls. One example is the huge Seventh-Kilometer Market near Odessa, Ukraine.The Roman term for market, still in use in a related sense, is forum. The modern shopping mall can be seen as an extension of this concept.

MARKETING ENVIRONMENT:

The various external forces that can directly or indirectly affect the many activities of an organization. This is an integral part of environmental scanning. These activities include acquisition of human resources, raw materials, financial resources, and development of goods and services. The marketing environment includes forces such as: political, legal, regulatory, economic, social, technological, and competitive. The term marketing environment is set of forces/factors that have potential to influence the marketing decisions of any company. These factors have to be taken into consideration by the marketer and proper steps should be taken to adapt to the conditions.The factors which affect the decisions may be demographic, legal, social, cultural etc.Examples:

Yamaha launched a prototype of YAMAHA FZ1 in India to adapt to the Indian Environment

Youth is of high population in India, therefore Pepsi has focussed the youth market in India, “YOUNGISTAN”

Mc. Donalds introduced Mc Veggie and Mc. Tikka when they entered India.

Head and shoulders is costlier in country like USA due its better quality like high viscousity. On the contrary it is lower in price in India to match the economy.

Volkswagen sales in the United States rose from under 50,000 cars in 1993 to over 300,000 a decade later partly as a result of a "Drivers Wanted" ad campaign that targeted fun-loving or youthful drivers. Rather than appealing to the mass market, VW went after a younger demographic willing to spend a little extra on a Volkswagen because of the car's German engineering, sportier image, and versatility. The voiceover on the introductory TV spot identifies the target audience by saying, "On the road of life, there are passengers and there are drivers."

Children are not allowed in France to work in ads

In country like Japan where average age on higher side products like insurance pertaining to pension, retirement benefits are in high demand, where as in country like India where major age group is young child care policies .

MARKETING GOAL:

It is the collection of various quantitative marketing targets that form a goal.

Marketing goals are objectives that are specific with respect to magnitude and time i.e. they usually quantify the objectives. EXAMPLES:

a. HUL goal –To develop new ways of doing business with the aim of doubling the size of the company while reducing environmental impact.

b. Colgate – Palmolive – It is deeply committed to advancing technology which can address changing consumer needs throughout the world. The goal is to use its technology to create products that will continue to improve the quality of life for consumers wherever they live.

c. The goal of Nokia is to seize a 10% increase in market share in the low cost variety of mobiles.

d. The goal of Raymonds is to expand the capacity, and distribution of clothing brands in Tier IV and V cities.

e. The goal of Haldirams is to target places like Jordan, Algeria, Yemen, etc.

MARKETING INFORMATION SYSTEM:

A Marketing Information System can be defined as 'a system in which marketing information is formally gathered, stored, analysed and distributed to managers in accordance with their informational needs on a regular basis.It is a set of  procedures and  practices employed in analyzing and assessing marketing information, gathered continuously from sources inside and outside of a firm. Timely marketing information  provides basis for decisions such as productdevelopment or improvement, pricing, packaging, distribution, media selection, and promotion.

A Marketing Information System can be defined as ‘a system in which marketing information is formally gathered, stored, analysed and distributed to managers in accordance with their informational needs on a regular basis’.

A system that is created through an understanding of the information needs of marketing management is called marketing information system.

A system that supply information to mangers of when, where and how the marketing mangement is to be done.Data is taken from the marketing environment and transferred into the information that marketing managers can use in their decision-making processes.

A marketing information system (MIS)consists of people, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers. An 'MIS' is a planned system of the collection, processing, storage and dissemination of data in the form of information needed to carry out the management functions.

Examples: Shoppers Stop offers shoppers a free membership card when

they make their first purchase at their store. The card entitles shoppers to discounts on selected items, but also provides valuable information to the chain.

Maruti uses its internal reporting system like customer feedback and decide about re-launching the products

MARKETING MIX Set of marketing tools that are used to develop integration / fit with the emerging marketing opportunities. Marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives.A combination of the controllable components of a marketing strategy: product, price, place and promotion. Public image may also be considered a controllable part of the marketing strategy.

Marketing mix is the combination of elements that we will use to market your product. There are four elements: Product, Place, Price and Promotion. They are called the four Ps of the marketing.Product: What your product offers that your customers value, and whether/how you should change your product to meet customer needs.

Pricing: For example, you might aim simply to match the competition, or charge a premium price for a quality product and service. You might have to choose either to make relatively few high margin sales, or sell more but with lower unit profits.

Place: How and where you sell. This may include using different distribution channels. For example, you might sell over the Internet or sell through retailers.

Promotion: How you reach your customers and potential customer. For example, you might use advertising, PR, direct mail and personal selling.It is concept of filling the gap between opportunity and the objectives to be achieved.Market is a place of bundle of expectation and we can fill this gap with the help of product, the concept of filling this gap is called marketing mix.EXAMPLE:LML and BAJAJ scooters lost because they were unable to fill this gap by morph marketing.LG gained the market by morph marketing.Discounts and offers on various products.Parachute coconut oil with double lid.

MARKETING MODEL

It is an overview of the entire marketing process which can be shown graphically, often using a computer, and used to solve problems

Graphical representations of a process designed to aid in understanding and for forecasting.

Marketing models are computerised models that allow simulation of scenarios based on different assumptions about changes to the macro environment and micro environment.

MARKETING OBJECTIVE:

It is the collection of various processes that define the essence of the marketing plan, which will include the mission statement and corporate, financial, marketing, and long term objectives which fits the basic business philosophy of the company.

Marketing Objectives means is trying to achieve through its marketing activities during a specified period; closely linked with corporate objectives. An objective is essentially a qualitative statement regarding company’s leadership, value/volume, market share, market scatter, product launches et al.Examples:Vodafone UK Marketing objectives: To become a global mobile leader in terms of profit, customers and value, making mobile networks the “nervous system” of the networked economy spanning three major developed markets (Europe, US and Japan)HUL objectiveTo help people feel good, look good and get more out of life with brands and services that are good for them and good for others.(emphasis on expanding the company size via launching various products)

Colgate – Palmolive Focuses on achieving the consistent growth required to continue the global success and to make it an even stronger company. It believes this is the best way to benefit its consumers, people and shareholders.

The objective of Nokia is to revive their marketing demand to recapture market share in the cell phone industry.

The objective of Asian Paints is to be the 5th largest decorative paints in the world from the 10th position.

The objective of Raymonds is to enter and be the leader in every clothing segment in the Indian market.

MARKETING PLAN:It is steps or procedure taken by a marketer or a company to achieve certain policies, goals etc. It includes elements like deciding marketing policies, marketing goals, strategies, programs etc. A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. Marketing plans cover between one and five years.

A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan.A marketing plan contains a list of actions and a sound strategic foundation.Examples:

Marketing plan of Maruti Suzuki includes-o To be India’s no.1 automobile industryo To keep safety as its top priority while manufacturing the

cars Hyundai- Lunch of Hyundai Pa will bridge the gap between

Santro and Getz, giving customers moreoptions within the Hyundai family

Toyota plans to increase its dealership from 97 to 150 DTH major Dish TV aims to add 3 million subscribers this fiscal to

take its subscriber base to 10 million by March 2011 YAMAHA will focus on the 150cc+ segment to achieve a target of

25 % share by the end of year. Honda priced its products 41% higher than the cheapest make in

philipines.

MARKETING RESEARCH SYSTEMS:

Marketing research is a proactive search for information. That is, the enterprise which commissions these studies does so to solve a perceived marketing problem.

Marketing research can be seen as the systematic and objective search for and analysis of (data and) Information relevant to the identification and solution of any problem in the field of marketing.

Marketing research is fundamentally about the acquisition and analysis of information required for the making of marketing decision.

Market research Information means finding out whom the customer is, and what he/she will buy.

Market research information means to enable design a product in accordance with customers' preference, to manufacture it in quantities that can be sold to pack it suitably, making appropriate arrangements for effective, advertising and distribution. In this ideal case, over - production and losses in tying of unsaleable stock will not occur. Examples:

Consumer marketing research

Business-to-business (B2B) marketing research.

MARKETING STRATEGY

Marketing strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations.Marketing strategy are the decisions taken by an industry to achieve its goals, objectives etc. The main difference of strategy from policy is that strategy is a decision making under constraints.

Activities associated with deciding whether to build, hold, or harvest market share and related decisions about positioning your products’ performance and whether to price for margin or growth. Pricing above your product’s fair price will typically lead to market-share loss. Pricing on or near the best-value frontier will typically lead to market-share gain. Changing performance opens up many other options for changing market share.

Marketing strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations

Example: The market strategy for YAMAHA in the year 2010 was to revolve

around the campaign “YES! YAMAHA” Reymonds is planning to open 100 retail stores through its

franchisee network in tier 4 & 5 cities in 2010.

MASS CUSTOMISATION : Mass customization is the ability to prepare on a mass basis, individually designed products and communications to meet each customer’s requirements. Mass Customisation is the customisation and personalisation of products and services for individual customers at a mass production price. Traditionally customisation and low cost have been mutually exclusive. Mass production provided low cost but at the expense of uniformity. Customisation was the product of designers and craftsman. Its expense generally made it the preserve of the rich. To-day, new interactive technologies, like the Internet, allow customers to interact with a company and specify their unique requirements which are then manufactured by automated systems.EXAMPLE:1. Levi’s Personal Pants2. National Bicycle Company

MEGA MARKETING:Use of power to market your product.

Management activity that involves (in addition to the typical marketing activities) other elements of a firm's external environment such as government, media, and pressure groups.

Mega marketing is defined as the strategic co-ordination of economic, psychological, political and public relations skills to gain the co-operation of a number of parties in order to enter or operate in a given market.

EXAMPLE:

1) Cable Operators cutting wires2) Pepsi entering India3) Dainik Bhaskar using against Rajasthan Patrika4) Pepsi was removed from Indian Railways by Coca Cola5) Ashok Leyland accused Tata Motors

MEGATRENDS: Megatrends have been described as "large social, economic, political and technological changes that are slow to form, and once in place, they influence us for some time— between seven and ten years, or longer." Young people in the region are playing an increasingly significant role in the consumption of products and services. For example: due to the boom in the information technology sector in India, a large number of people are joining the workforce. As a result their purchasing power is increasing and they are becoming an important consumption group. The role of the youth in consuming products and services as well as in influencing family consumption decisions is undergoing a perceptible metamorphosis.

META MARKETING Meta marketing is using a combination of two or more marketing variables for marketing.Meta marketing means use of more than one ‘P’. Where ‘P’ stands for product, price, place, promotion.

EXAMPLE: a) Buy 1 get 1 free b) 20% discount

MICRO ENVIRONMENTAL

The microenvironment consists of various components. The first is the organization’s internal environment—its several departments and management levels—as it affects marketing management's decision making. The second component includes the marketing channel firms that cooperate to create value: the suppliers and marketing

intermediaries (middlemen, physical distribution firms, marketing-service agencies, financial intermediaries). The third component consists of the five types of markets in which the organization can sell: the consumer, producer, reseller, government, and international markets.

The Company’s Microenvironment

Microenvironment consists of six forces that affect its ability to serve its customers. Let’s discuss these forces in detail:

a. The Company

The first force is the company itself and the role it plays in the microenvironment. This could be deemed the internal environment.

1). Top management is responsible for setting the company’s mission, objectives, broad strategies, and policies. 2). Marketing managers must make decisions within the parameters established by top management. 3). Marketing managers must also work closely with other company departments. Areas such as finance, R & D, purchasing, manufacturing, and accounting all produce better results when aligned by common objectives and goals. 4). All departments must “think consumer” if the firm is to be successful. The goal is to provide superior customer value and satisfaction.

b. Suppliers

Suppliers are firms and individuals that provide the resources needed by the company and its competitors to produce goods and services. They are an important link in the company’s overall customer “value delivery system.”

1) One consideration is to watch supply availability (such as supply shortages). 2) Another point of concern is the monitoring of price trends of key inputs. Rising supply costs must be carefully monitored.

c. Marketing Intermediaries

Marketing intermediaries are firms that help the company to promote, sell, and distribute its goods to final buyers. 1) Resellers are distribution channel firms that help the company find customers or make sales to them. 2) These include wholesalers and retailers who buy and resell merchandise. 3) Resellers often perform important functions more cheaply than the company can perform itself. However, seeking and working with resellers is not easy because of the power that some demand and use.

Physical distribution firms help the company to stock and move goods from their points of origin to their destinations. Examples would be warehouses (that store and protect goods before they move to the next destination).

Marketing service agencies (such as marketing research firms, advertising agencies, media firms, etc.) help the company target and promote its products.

Financial intermediaries (such as banks, credit companies, insurance companies, etc.) help finance transactions and insure against risks.

d. Customers

The company must study its customer markets closely since each market has its own special characteristics. These markets normally include:

1). Consumer markets (individuals and households that buy goods and services for personal consumption). 2). Business markets (buy goods and services for further processing or for use in their production process). 3). Reseller markets (buy goods and services in order to resell them at a profit). 4). Government markets (agencies that buy goods and services in order to produce public services or transfer them to those that need them). 5). International markets (buyers of all types in foreign countries).

e. Competitors

Every company faces a wide range of competitors. A company must secure a strategic advantage over competitors by positioning their offerings to be successful in the marketplace. No single competitive strategy is best for all companies.

f. Public

A public is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. A company should prepare a marketing plan for all of their major publics as well as their customer markets. Generally, publics can be identified as being: 1) Financial publics--influence the company’s ability to obtain funds. 2) Media publics--carry news, features, and editorial opinion. 3) Government publics--take developments into account. 4) Citizen-action publics--a company’s decisions are often questioned by consumer organizations. 5) Local publics--includes neighbourhood residents and community organizations. 6) General publics-a company must be concerned about the general public’s attitude toward its products and services. 7) Internal publics--workers, managers, volunteers, and the board of directors.

MICRO MARKETING:

It involves targeting potential customers at a very basic level, such as by ZIP code, specific occupation, lifestyle, or individual household. The Internet may allow marketers to make micromarketing even more effective.Designing, creating, and manufacturing products, marketing strategies, and advertising campaigns for the benefit of very specific geographic, demographic, or psychographic segments of the consumer market. Micromarketing is a relatively new marketing trend created by the diversity of the consumer population and the difficulty in creating a single product that appeals to all the diverse groups in the population. Alternative term for niche marketing.Micro-marketing is the performance of activities that collectively seek to accomplish a company’s objectives by anticipating customer needs and directing a flow of need-satisfying goods and services from producer to customer.

MIND SHARE : Mind share or the development of consumer awareness or popularity, is one of the main objectives of advertising and promotion. When people think of examples of a product type or category, they usually think of a limited number of brand names. Examples-

a) The term googling describing the act of online searching.

b) Very few people realize that "Band-Aid" is a specific brand of first-aid adhesive bandage, and they refer to all such items by that name even if it is a different brand.

c) Xerox is often used in case of copying.

MORPH MARKETING:

DEFINITIONS- It is a strategy in which marketer provides a product

with an envelope of service---wiki.answers.com Morph marketing is a marketing as per the changing

requirements of the customers. It is also known as PACE MARKETING as it provides pace

to the business.

EXAMPLES- LG Provides a replacement T.V when your faulty T.V is

taken out for service. Mercedez BENZ provides instant service for your car , if

default is incurable , they also provide a new car as a replacement.

Nokia mobiles provides new battery as a replacement for the faulty BL5-C battery.

Various car companies take all their car’s models back if they found that some fault had occurred in their cars somewhere as a safety precaution.

MOST VALUABLE CUSTOMERS :

DEFINITIONS:

Customers, or customer segments, providing the largest stream of profits over the relevant time horizon. Marketers target customers that can provide the greatest discounted present value of future profits.

These customers are the real assests of the company. Most valuable customer can be a single customer as well as

an organization that provides maximum profit.

EXAMPLES:

GENERAL ELECTRIC is the most valuable customer for IT GAINT BIRLASOFT(60%projects that birlasoft handles comes from GE.

For sleepers manufactures, it is INDIAN RAILWAYS.

FOR DETERGENTS LIKE NIRMA AND GHARI it is the rural market .

MOTIVATION:

DEFINITIONS

Motivation is the driving force which causes us to achieve goals. Motivation is said to be intrinsic or extrinsic. The term is generally used for humans but, theoretically, it can also be used to describe the causes for animal behavior as well.

According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, selfishness, morality, or avoiding mortality.

Conceptually, motivation should not be confused with either volition or optimism. 

Motivation is related to, but distinct from, emotion.

EXAMPLES:

MASLOWS HIERARCHIAL theory of motivation that caters physiological , safety ,social, esteem ,self-actualization needs in a hierarchial order.

Theory X and theory Y(DOUGLAS THEORY) HERGBERG’S TWO FACTOR THEORY EQUITY THEORY ERG-THEORY

MULTIBRAND STRATEGY /MULTIPLE BRANDING

DEFINITION: Marketing of two or more mutually competing products under

different brand names by the same company. The motive may be that the company wishes to create internal competition to promote efficiency, or to differentiate its offering to different market segments, or to get maximum mileage out of established brands that it has acquired.

When a company has achieved a dominant market share, multibrand strategy may be its only option for increasing sales still further without sacrificing profitability.

Examples: Lever Brothers sells washing powders under the Persil,

Omo and Surf names. Cadbury sells chocolates under the Dairy Milk, Bournville

and Fruit & Nut names. Heinz sells canned convenience foods under the Baked

Beans, Spaghetti Hoops and Alphabetti Spaghetti names. GITANJALI GROUP have following brands under its name-

Nakshatra , D’damas , Diya ,Stefan Hafner.

MULTICHANNEL MARKETING-

DEFINITIONS- A system in which a producer uses more that one channel of

distribution; commonly, producers who use multichannel marketing systems operate their own retail stores as well as sell through other wholesalers and retailers. Multichannel retailers are also called Merchandising Conglomerates.--- monash dictionary of marketing

Multichannel marketing is marketing using many

different marketing channels to reach a customer. In this

sense, a channel might be a retail store, a web site, a mail

order catalogue, or direct personal communications

by letter, email or text message. The objective of the

company doing the marketing is to make it easy for a

consumer to buy from them in whatever way is most

appropriate.

To be effective multichannel marketing needs to be

supported by good supply chain management systems, so

that the details and prices of goods on offer are consistent

across the different channels. It might also be supported by

detailed analysis of the return on investment from each

different channel, measured in terms of customer response

and conversion of sales. Some companies target certain

channels at different demographic segments of the market or

at different socio-economic groups of consumers.

MultiChannel marketing allows the retail merchant to reach its

prospective or current customer in a channel of his/ her

liking.------------- -wikipedia.

EXAMPLES:

Mobile companies like nokia sells their mobiles using their

own stores PRIORITY,retail outlels like BIG-

BAZZAR,SHOPPER’S STOP,and through others means like

HOTSPOT and interet(E-COMMERCE).

AIRLINES sells their tickets by their websites,offices and

through other sites like YATRA.COM,MAKE MY TRIP.COM.

Railways also sells their tickets through their reservation

counters,IRCTC website and other registered agents.

MULTIDIMENSIONAL SCALING:

DEFINITIONS: Multidimensional scaling (MDS) is a set of

related statistical techniques often used in information visualization for exploring similarities or dissimilarities in data.

MDS is a special case of ordination. An MDS algorithm starts with a matrix of item–item similarities, then assigns a location to each item in N-dimensional space, where N is specified a priori. For sufficiently small N, the resulting locations may be displayed in a graph or 3D visualisation.—(Wikipedia)

TYPES OF MULTIDIMENSIONAL SCALING:

MDS algorithms fall into a taxonomy, depending on the

meaning of the input matrix:

Classical multidimensional scaling 

also known as Torgerson Scaling or Torgerson-Gower scaling –

takes an input matrix giving dissimilarities between pairs of

items and outputs a coordinate matrix whose configuration

minimizes a loss function called strain.

Metric multidimensional scaling

A superset of classical MDS that generalizes the optimization

procedure to a variety of loss functions and input matrices of

known distances with weights and so on. A useful loss function in

this context is called stress which is often minimized using a

procedure called Stress Majorization.

Non-metric multidimensional scaling

In contrast to metric MDS, non-metric MDS both finds a non-

parametric monotonic relationship between the dissimilarities in

the item-item matrix and the Euclidean distance between items,

and the location of each item in the low-dimensional space. The

relationship is typically found using isotonic regression.

Louis Guttman 's smallest space analysis (SSA) is an

example of a non-metric MDS procedure.

NEED:

DEFINITIONS: Needs are the basic human requirements. Need means a “felt

state” or a sense of deprival. Need is a negative word.(google) Problems that customers intend to solve with the purchase of a

good or service. And the marketers’ job is to identify the customer wants to develop a product or service specific to customer need.(google)

EXAMPLES:

Ujala Supreme was a product made to suit customer needs for whiter clothes.

Fair and Handsome was a product as a fairness cream specific for men.

Air conditioners were not needed in cars in European countries, hence Maruti refitted cars with heaters.

NEED BASED SEGMENTATION:

DEFINITIONS: Group consumers into segments based on similar needs and

benefits. Each segment is satisfied by same kind of products and offer.

Widely used concept helps marketers to design their strategy and saves promotional and advertizing costs.

EXAMPLES: HERO HONDA SHINE was specifically lauched for girls to realize

that “why should boya have all the fun?” Mercedez benz caters to high rich class people for whom status

matter more than money. Ghari detergent and nirma generally caters to the need of rural

population. TATA MOTORS launched NANO to caters to the need of middle

class as a replacement of two-wheeler.

NEUTRAL PRICE :

DEFINITIONS:

The price for a product at which its market share will hold at the current level.

Setting a price above the neutral price is a tactic for increasing unit profit margin, at the expense of causing market-share erosion; setting price below the neutral price is a tactic for gaining share.

EXAMPLES:

During shortage price of vegetables and other essential items, their prices increases ato a great extent(much more than the neutral price)

Sometimes companies reduces their product prices to gain market share.

TATA DOCOMO introduces 1 PAISA/SEC .

NEURO MARKETING:DEFINITIONS:

The term neuromarketing has been used to describe brain research on the effect of marketing stimuli. By adding neurological techniques o their research arsenal , marketers are trying to move toward a more complete picture of what

goes on inside consumers’ heads. Given the complexity of the human brain, however many researchers caution that neurological research should not form the sole basis of marketing decisions. these research activities have not been universally applauded though. Critics thinks that such a development will only lead to more marketing manipulation by companies.----(MARKETING MANEGEMENT BY KOTLER)

NICHE MARKETING : DEFINITIONS:

A niche market is the subset of the market on which a specific product is focusing; therefore the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.

Every single product that is on sale can be defined by its niche market. As of special note, the products aimed at a wide demographic audience, with the resulting low price (due to price elasticity of demand), are said to belong to the mainstream niche—in practice referred to only as mainstream or of high demand. Narrower demographics lead to elevated prices due to the same principle. So to speak, the Niche Market is the highly specialized market that tries to survive among the competition from numerous super companies.

Small but profitable segment of a market suitable for focused attention by a marketer. Market niches do not exist by themselves, but are created by identifying needs or wants that are not being addressed by competitors, and by offering products that satisfy them.

Niche marketing is an effort to connect with and sell to a particular group of consumers

There are many different ways to define a niche market, with some examples revolving around geographic location, age, gender, sexual orientation, religion, or profession. While the marketer is open to consumers of all types, the main focus of the public relations and marketing efforts seeks to identify

with the niche market and meet needs that are common to that particular set of customers.

EXAMPLES: Mercedez , BMW , PORSCHE and other luxury cars are targeted

only to rich urban class who can afford them. Cars like Hyundai Sonata , Honda City are targeted to upper

middle class. Tata NANO is targeted to consumers as a replacement of two-

wheelers at a cost of RS 1 LAC ONLY Armani socks cost RS 900 for a pair targeted to rich people. Similarly, Pierre Cardin pens cost RS 250 each Advertisement campaign by Dr. Batra regarding loss of hair.  A number of television channels cater to the need of a particular

niche; for example, sports channels like STAR Sports, ESPN, STAR Cricket target a niche of sports lovers

TVS promoting its brand Apache as TVS racing directed to the youth segment identifying the growing demand of speed and power in the segment.

NON-PROFIT MARKETING- DEFINITIONS:

Marketing activity undertaken by a firm whose primary objective is one other than profit;

organisations that buy and distribute goods and services for reasons other than the return of profit to their owners.-----Monash dictionary of marketing

EXAMPLES: AIRCEL launched SAVE TIGER CAMPAIGN. NDTV launched GREENATON. TATA TEA launches JAGO RE CAMPAIGN. BILL AND MELINDA GATES lauched a foundation to help people

from disesses like malaria. IT gaint INFOSYS has a foundation which works for the welfare of

society.

7 O’s model of study of consumer behaviour: In order to understand the consumers in the target market, marketers should follow the 7 O’s framework of consumer research. The 7 O’s stand for – Occupants , Objects, Objectives, Organizations, Operations, Occasions, Outlets.

OBJECT: (What does the market buy?)

DEFINITIONS: It is defined as the object of purchase or what does the consumer

buy. What are the features , sizes, colours ,flavours, etc that the consumer seeks? Products – soft drinks, Product forms – cols v/s lime v/s orange Brands – Coke v/s Pepsi

EXAMPLES: Hero Honda karizma is an object for young ,passionate sporty

guy. Tata nano for middle class who need it as a replacement for

scooter. Indigo airlines for people loving cheap and economic cost airlines Parker pens for middle level executives.

OBJECTIVE(WHY DOES THE MARKET BUY? )

DEFINITIONS:

WHY IS CONSUMER BUYING? (OBJECTIVE) Why of buying & explain what benefits the consumer expects the product or services to serve. What motive is he trying to satisfy?

EXAMPLES: To gift to someone during birthday. To uplift your status symbol To impress others To cater to the present needs ie if your family size is increased

then hatch batch car is replaced by big cars like SAFARI.

OCCASION(When does the market buy?)

DEFINITIONS:

WHEN DO THEY BUY OR HOW DO THEY BUY & USE ( OCCASION) Buying rate or buying frequency of consumers & occasions on which they would buy the product or service for the desired benefits.

EXAMPLES:

Festival season—holi , diwali ,EID etc. Holidays ie weekends. Birthdays Aniversary Valentine day

OCCUPANT (Who constitutes the market? )

DEFINITIONS:

Occupant is defined as those who constitute the market. Helps to understand consumer’s geographic, demographic, psychographic & media graphic profile.

Demographic profile is the study of age, gender, income, occupation, educational qualifications of the consumer.

Psychographic profile is the study of the lifestyle of the consumer as expressed by activities , interests & opinions of the consumer.

Geographic profile is the region to which the consumer belongs . Media graphic are the media habits of the consumer.

OFFILINE TARGETING STRATEGY:DEFINITIONS:

A popular offline targeting strategy is to create a brand name and style that carries a stigma that your target audience can identify with.--------(GOOGLE)

Back in the nineties when the economy was still healthy Abercrombie and Fitch marketing affluence and exclusivity at middle class society and as a result created a clothing label out of thin air that was the requirement for all teens and college kids. Their success did not happen overnight as they participated in wide consumer research strategies throughout their period of success to provide what they deemed their audience wanted.—(WIKIPEDIA)

EXAMPLES:

Distribution of pamphlets during promotion of products. Personal selling Promotion through posters Advertisements in T.V and radio stations.

ONLINE MARKET RESEARCH

The use of computer networks, including the internet, to assist in any phase of the marketing research process, including development of the problem, research design, data gathering, analysis, and report writing and distribution.

Marketing Research, Alvin C. Burns & Ronald F. Bush

When organizations use internet to support a phase, or whole of the market research process, it is termed as online market research.

Marketing Research- Text & Cases, Harper W. Boyd & Stanley F. Stasch

Online marketing research is the process by which companies use the Internet to gather data to evaluate how well a product or service is selling to consumers.

Marketing Research, Gilbert A. Churchill, Jr.

According to the authors of Online Marketing Research: “ The advent of the Web has led to a revolution in the research community” Today RFPs, sample design and ordering, data collection, data analysis and report writing and distribution are carried out through online tools and services.

Online research is relatively low in cost in the sense that participants from all over the globe can pitch into the discussions, without engaging in any kind of travel and/or living expenses.

This module of market research also allows speed of execution. Although online research requires some prior advanced scheduling and preparations, in the long run it proves to be worth the effort. Teens, well-educated professionals, working mothers can be effectively reached through online research. The response rate is also seen to be better off as they can respond to the research in their own space and at their own convenience.

OPERATION (from the seven O’s of consumer buying behaviour)

7 O’s model of study of consumer behaviour:

In order to understand the consumers in the target market, marketers should follow the 7 O’s framework of consumer research. The 7 O’s stand for - Occupants, Objects, Objectives, Organizations, Operations, Occasions, Outlets.

Who constitutes the market?   Occupant

What does the market buy?    Object

Why does the market buy?     Objective

Who participates in buying?   Organization

How does the market buy?     Operation

When does the market buy?   Occasion

Where does the market buy?  Outlet

HOW THE CONSUMERS BUY(OPERATIONS) - What kind of background information do consumers collect before buying & from whom they seek this information.

Example – information collected before purchase.

OPERATIONAL DECISIONS

Operational decisions are short-term decisions as opposed to the longer-term strategic investment decisions that are needed when physical assets are being acquired. Some of the more common decisions related to plant operations involve material, plant facilities, and in-house capabilities of company personnel. Short term operational decisions are also called Present Economic Studies and they require the estimation of costs associated with various production and manufacturing activities. These costs provide the basis for developing successful business strategies and planning future operations.

To make operational decisions it helps to understand some fundamental cost-volume relationships related to the operation of a company. A visit to the "Short-term Decisions" page will then be appropriate for a review of some common examples of short-term operational decisions.

Decisions that involve routine tasks, such as planning production and sales, scheduling personnel and equipment, adjusting production rates, and controlling the quality of production.

OPERATIONAL STRATEGY

A plan to transform an organization's overall strategic objectives into operational deliverables. It involves the design of the product or service and the processes by which the product or service is produced; the way in which production is managed and controlled; and the design of processes for the constant improvement of the operation. If, at the strategic level, the organization decides to compete in the market on the basis of superior quality, the operations strategy has to plan to produce a package incorporating the specified quality within stated financial constraints. If the strategy is to compete on cost, the plan must produce the product cheaply within the limits of acceptable quality.

A dictionary of business- Oxford University Press

“Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution

to the overall strategy, through the reconciliation of market requirements with operations resources.”

Slack and Lewis

It is concerned with how each part of the business is organised to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc.

OPPORTUNITIES

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.

A marketing opportunity is an area of buyer need in which a company can perform profitably. Opportunities can be classified according to their attractiveness and their success probability. The company’s success probability depends on whether its business strengths not only match the key success requirements for operating in the target market, but also exceed those of its competitors. Mere competence does not constitute a competitive advantage. The best-performing company will be the one that can generate the greatest customer value and sustain it over time.

Philip Kotler

These are external chances to make greater sales or profits in the environment.

Keeping in mind the Company Strengths, SWOT Analysis can now influence the Opportunities for the business. These can be seen as targets to achieve and exploit in the future for example:

1. Good financial position creating a good reputation for future bank loans and borrowings

2. Skilled workforce means that they can be moved and trained into other areas of the business

3. Competitor going bankrupt (Takeover opportunity?)4. Broadband technology has been installed in the area (useful for

Internet users)5. Increased spending power in the Local/National economy6. Moving a product into a new market sector

In SWOT, opportunities and threats are external factors.

For example an opportunity could be:

1. A developing market such as the Internet.2. Mergers, joint ventures or strategic alliances.3. Moving into new market segments that offer improved profits.4. A new international market.5. A market vacated by an ineffective competitor.

ORGANIZATIONAL MARKETING

Simply put, organizational marketing “sells” the unique service or services offered by a supported employment provider. Marketing efforts are directed toward two constituents: 1) community employers; and 2) job seekers with significant disabilities. Specifically, the services that will be marketed to community employers will be the availability of a rich pool of personnel options, as well as employment centered consultation.

Organizational marketing requires a creative plan of action and ongoing evaluation. The plan of action identifies the niche or service identity, competition, resources, customers served, and the outcomes which are expected. The results of such planning and development provide an overall strategy and framework for achieving success.

Virginia Commonwealth University, Rehabilitation Research and Training Center on Supported Employment

Definition:

A development of the well established term 'INDUSTRIAL MARKETING' to cover the MARKETING of all goods and services between one organization and another. The marketing approach is thus identifiably linked to the subsumed existence of ORGANIZATIONAL BUYER BEHAVIOUR. The key CONCEPT is that the fundamental differentiating feature between types of marketing activity is not the nature of the goods being traded, but the nature of the demand. Whereas CONSUMERS are perceived as buying frequently (if not always) for immeasurable personal satisfaction, organizations are seen as buying deliberately, usually with quantifiable benefits in view. Marketers thus require to base their approaches accordingly - even if the PRODUCT being traded is for eventual personal consumption.

Westburn dictionary of marketing

OUTDOOR ADVERTISING

Technically correct term for the ADVERTISING MEDIUM colloquially referred to as 'posters'. The category does not include POSTER SITES in railway or underground stations, or advertising spaces in underground trains, on and in buses, and so on. The term for this subset is 'transport advertising'. The two are taken together, in industry analyses and statistics. 'Outdoor and transport' ranks third among the five MAJOR MEDIA, with a 4 per cent share of the total UK advertising expenditure. The term 'posters' is generally used in this dictionary in place of the more cumbersome and less self-explanatory combined description.

Westburn dictionary of marketing

Any advertising done outdoors that publicizes your business's products and services. Types of outdoor advertising include billboards, bus benches, interiors and exteriors of buses, taxis and business vehicles, and signage posted on the exterior of your own brick-and-mortar location.

Entrepreneur Encyclopaedia

Out-of-home advertising (or outdoor advertising) is made up of more than 100 different formats, totaling $6.99 billion in annual revenues in 2008 in the USA. Outdoor advertising is essentially any type of advertising that reaches the consumer while he or she is outside the home. This is in contrast with broadcast, print, and Internet advertising.

Out of home advertising, therefore, is focused on marketing to consumers when they are "on the go" in public places, in transit, waiting (such as in a medical office), and/or in specific commercial locations (such as in a retail venue). Outdoor advertising formats fall into four main categories: billboards, street furniture, transit, and alternative.

Advantages of Outdoor advertising: Flexibility; high repeat exposure; low cost; low competition

Limitations: Limited audience selectivity; creative limitations

OVER POSITIONING

Specifying the brand or product too narrowly with the result that some of the target customers are not reached effectively.

Westburn dictionary of marketing

Over positioning is when your marketing makes the product too special, so the potential customer group becomes too small.

It means that buyers believe that the product is meant for a very select audience because it is premium priced.

For example, when Aqua Guard introduced Aqua Sure, people thought that it was meant for upper class consumers. Whereas the product was priced only at Rs. 1600.

PACKAGING

The materials (glass, aluminium, cardboard, etc) originally intended merely to contain and protect a product; in recent years the role of

packaging has been broadened so that, in addition to containment and protection, its purpose is to attract attention, provide additional product information, and assist in promotion.

Monash University marketing dictionary

Packaging is wrapping in which an item is presented for sale; presentation of a package

pack, wrap; create attractive packaging in order to promote the sale of an item; combine things together as one inseparable unit

Packaging includes the activities of designing and producing the container for a product. The container is called the package, and it might include up to three levels of material.

Philip Kotler

Packaging can be defined as the wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote, and otherwise make the product marketable and keep it clean.

Prof. Dileep Kumar M.

Ex-Professor, Symbiosis (SCMHRD, SCDL)

An important distinction is to be made here between two types of packaging

Transport packing: The product entering in to the trade need to be packed well enough to protect against loss damage during handling, transport and storage. Eg: fiberboard, wooden crate etc.

Consumer Packing: This packaging holds the required volume of the product for ultimate consumption and is more relevant in marketing. Eg: beverages, tobacco etc.

Old Spice aftershave lotion is in a bottle (primary package) that is in a cardboard box (secondary package) that is in a

corrugated box (shipping package) containing six dozen boxes of Old Spice.

PENETRATION PRICING

Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. The strategy works on the expectation that customers will switch to the new brand because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term.

Westburn dictionary of marketing

Penetration pricing is a market-based approach to pricing wherein the price is set to a sufficiently low level to make the product attractive to the mass market. The aim is to achieve a large market share by high initial sales. It is introducing the product at a low price intended to capture the mass market for the product or service.

Strategy adopted for quickly achieving a high volume of sales and deep market-penetration of a new product. Under this approach, a product is widely promoted and its introductory-price is kept comparatively lower. This strategy is based on the assumption that (1) the product does not have an identifiable price-market segment, (2) it has elasticity of demand (buyers are price sensitive), (3) the market is large enough to sustain relatively low profit margins, and (4) the competitors too will soon lower their prices.

The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased.

Setting prices low in order to gain as much market share as possible as quickly as possible.

Firms such as Texas Instruments choose this objective because they believe that higher sales volume will lead to lower unit costs and .higher long-run profit.

This approach was used by France Telecom and Sky TV.

PERCEPTUAL MAPPING

Perceptual mapping is a graphics technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition.

It is the use of a graph or map in the development of a new product, in which the proximity of consumers' images of the new product to those of an ideal product provide an indication of the new product's likely success

It is the process by which consumers' perceptions of an existing product are charted. Consumers answer questions about a given product based on their experience with the product and their thoughts about what the product should be. Answers are plotted on a graph, and the results are used to make improvements in the product or in the creation of new products.

Perceptual maps can have any number of dimensions but the most common is two dimensions. Any more is a challenge to draw and confusing to interpret.

The perceptual map below shows consumer perceptions of various automobiles on the two dimensions of sportiness/conservative and classy/affordable. This sample of consumers felt Porsche was the sportiest and classiest of the cars in the study (top right corner). They felt Plymouth was most practical and conservative (bottom left corner).

PERSON MARKETING

It is the marketing activity aimed at creating target market awareness, and a favourable opinion, of a particular person.

Person marketing involves efforts designed to cultivate the attention, interest, and preferences of a target market towards a celebrity or authority figure.

Oprah Winfrey uses person marketing to promote her O magazine.

GM paying Tiger Woods 40 million for a 5 year contract ending in 2009 is an example of person marketing.

PERSONALITY & SELF CONCEPT

Self-concept (or self-image) is related to personality. Marketers often try to develop brand images that match the target market’s self-image. Yet it is possible that a person’s actual self-concept (how she views herself) differs from her ideal self-concept (how she would like to view herself) and from her others-self-concept (how she thinks others see her). Which self will she try to satisfy in making a purchase? Because it is difficult to answer this question, self-concept theory has had a mixed record of success in predicting consumer responses to brand images.

Philip Kotler

Self-concept (also called self-construction or self-perspective) is a multi-dimensional construct that refers to an individual's perception of "self" in relation to any number of characteristics, such as academics (and nonacademics), gender roles and sexuality, racial identity, and many others. While closely related with self-concept clarity (which "refers to the extent to which self-knowledge is clearly and confidently defined, internally consistent, and temporally stable"), it presupposes but is distinguishable from self-awareness, which is simply an individual's awareness of their self. It is also more general than self-esteem, which is the purely evaluative element of the self-concept.

It is defined as the “totality of the individual’s thoughts and feelings having reference to himself as an object.

The self-concept is the accumulation of knowledge about the self, such as beliefs regarding personality traits, physical characteristics, abilities, values, goals, and roles.

Lewis, Michael. "Social Knowledge and Social Development." Merrill-Palmer Quarterly 36 (1990):93-116

POINT-OF-SALE :

1) A data collection system that electronically receives and stores bar code information derived from a sales transaction. This could the zip codes for library users, facilitating the library in determining geographic market are that users reside in.

2) Point of sale marketing, commonly known as point of purchase advertising, attracts retail shoppers at the point of a purchase. In other words, point of sale (POS) marketing lures shoppers into buying additional products or services at checkout. Point of sale marketing utilizes display to catch a shopper's attention; displays can range from signs and banners to coupon dispensers and video advertisements at the cash register. Regardless of the type of display, POS marketing often results in impulsive purchases

PRIORI SEGMENT :

1) It starts by using identifiable variables to divide the market based on who the  customers are, in the hope that resulting segments perfume differently in response to market mix variables.

2) In a priori segmentation, the market is split according to pre-existing demographic criteria such as age, sex or social economic status.

PRODUCT  

1) relating to the good or core service being sold.

2) Product. What your product offers that your customers value, and whether/how you should change your product to meet customer needs.

3) Product – Product is a bundle of utilities. It must provide value to a customer but does not have to be tangible at the same time. Basically, it involves introducing new products or improvising the existing products. It includes the features, style, shape, design, guarantee, warranty, after sales service, insurance etc. It includes tangible products as well as services.

e.g. a) Colgate Toothpaste are available in various variants such as Total, Sensitive, Herbal, Active Salt  b) Transcend memory chips come with lifetime warranty.c) Hotel Industry which is a service is also included in product.

4) Anything that is of value to a customer and can be offered through a voluntary marketing exchange.

5) The physical goods sold to customers and other organisations as well as the services that are offered to individual consumers, other businesses and the government.

-Kenneth E Clow and Donald Baack

PRICE –

1) The price is the monetary value of the product. It is the amount a customer pays for the product. Pricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing and other options such as leasing. Pricing must be competitive and must entail profit.

e.g. a) Asian Paints – Royale Luxury emulsion has been placed by Asian Paints as a premium product. It is priced at Rs. 315-345 for 1 litre.

b) Dell Studio Laptops are priced at Rs. 42,000 onwards.c) Pepsi is priced at Rs. 10 equal to the competitor Coca Cola

2) the transactions price that the customer pays for the product.

3) The overall sacrifice a consumer is willing to make – money, time, energy to acquire a specific product or service.

4) Pricing is the process of determining what a company will receive in exchange for its products.

Pricing factors are manufacturing cost, market place, competition, market condition, and

quality of product. Pricing is also a key variable in microeconomic price allocation theory.

Pricing is a fundamental aspect of financial modeling and is one of the four Ps of the marketing

mix. The other three aspects are product, promotion, and place. Price is the only revenue

generating element amongst the four Ps, the rest being cost centers.

5) Pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign,

specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others. Automated systems require more setup and maintenance but may prevent pricing errors. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. Thus pricing is very important in marketing.

Eg. When Sony introduced the world's first high definition television to the Japanese market in 1990, the high-tech sets cost $43,000. These televisions were purchased only by customer who could afford to pay a high price for the new technology. Sony rapidly reduced the price over the next several years to attract new buyers. By 1993, a 28-inch HDTV

cost a Japanese buyer just over $6,000. In 2001, a Japanese consumer could buy a 40-inch HDTV for about $2000, a price that many more customers could afford. In this way, Sony skimmed the maximum amount of revenue from the various segments of the market the above example shows skimming pricing.

6) The amount charged for a good or a service.- Kenneth E Clow and Donald Baack

PIMS (PROFIT IMPACT OF MARKET STRATEGY) — an ongoing research and consulting activity focused on competitive marketing strategy and benchmarking using a business-unit database. The research and benchmarking activity focuses on measuring metrics that track a business’s competitive position (relative overall quality/performance, market share, and capital intensity) and relating competitive position and market attractiveness metrics to measures of business results (profitability and growth).

PRICE CUSTOMIZATION — Setting different prices for different market sub-segments, pricing higher in sub-segments that perceive the most differential worth in your product, and reducing price to appeal to other sub-segments according less worth to your product.

PRICE DIFFERENTIAL — 1) The difference between the price of an offering and the price of a reference offering. Products that perform better than average are often priced higher than the average price. Products that perform worse than average are often priced lower than average.

2) The marketing manager can charge different kinds of prices in different markets. This is known as Price differential or Price discrimination.

- Tapan K Panda

3) Selling merchandise to different buyers at different price.

- Kenneth E Clow and Donald Baack4) The practice of charging different prices to segments of the market according to their price elasticity or sensitivity.

- Russell s. winer

5) A difference in the prices of two products or of the same product in different places

PRICE-PERFORMANCE PROFILE — A table showing customer-perceived performance scores, attribute relative importance, and prices of major offerings in a category for the major competitors in the market.

PRICE PREMIUM — The selling price of the vendor's product minus the selling price of a reference product. It is the opposite of the price advantage a vendor enjoys when selling at a price below the price of the reference product.

PRE-PURCHASE – This is the stage in which the consumer does a market research for a particular kind of product.

POST-PURCHASE – 1) This is the stage in which the consumer looks for the services provided after the purchase. After purchase, the consumer will experience some level of satisfaction or dissatisfaction. If the product fails short of buyer’s expectation, the buyer will be disappointed & dissatisfied. This dissatisfaction is called Cognitive Dissonance. The marketer should always use to reduce the cognitive dissonance by cementing with ads and building relationship with the consumer.

Post-purchase evaluation: the stage after a product or service has been purchased and used in which the consumer reflects on whether the product met expectations, exceeded them or was disappointing.

1) Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market. The goal is to locate the brand in the minds of consumers to maximize the potential benefit  to the firm. The result of positioning is the successful creation of a customer focussed value proposition.

Examples-

a. Mahindra & Mahindra positioned their SUV Scorpio to life style oriented consumers.

b. Indica by Tata Motors for small car consumers who want a more spacious vehicle.

c. Domino’s Pizza for convenience-minded pizza lovers . Benefits being delivery, speed, and good quality.

2) Developing a specific marketing mix to influence potential customer’s overall perception of a brand , product line.

3) The place a good or service occupies in the mind of consumers and relative to the competition.

4) Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market.

POINTS-OF-DIFFERENCE (PODs) are the attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand .Associations that make up points of difference may be based on virtually any type of attribute or benefit.

Examples-

a. Apple(Design)b. Nike(Performance)c. Lexux (Quality)

POINTS-OF-PARITY

-(POPs) are the associations that are not necessarily unique to the brand but may in fact be shared with other brands. These types of associations come in two basic forms : category and competitive.

Example-Situation  of  Savlon when it entered the antiseptic lotion market in India dominated by dettol.

PLACE - 1) How and where you sell. This may include using different distribution channels. For example, you might sell over the Internet or sell through retailers.

2) It includes channel management and physical distribution. Distribution is about getting the products to the consumer. Some examples of distribution include – Distribution channels, market coverage, warehousing, order processing, transportation, inventory management.

3) Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

e.g. a) Nikon has centres and showrooms in almost every state across India.b) Raymonds is retailed through 30,000 stores in over 40 towns across India.c) Maruti Suzuki has one of the widest chain to dealers throughout the country with multiple dealers in most cities.

4) Deciding where, how and when products will be available to potential customers.

POLITICO-LEGAL:

1) Marketing decisions are strongly affected by developments in the political

and legal environment. This environment is composed of laws, government agencies, andpressure groups that influence and limit various organizations and individuals. Sometimesthese laws also create new opportunities for business. For example, mandatory recycling lawshave given the recycling industry a major boost and spurred the creation of dozens of newcompanies making new products from recycled materials.2) The basic understanding of the political legal environment is when the government implement's laws and or regulations which effects the way a business operates.

Example:•Norway bans several forms of sales promotion—trading stamps, contests, andpremiums— as inappropriate or "unfair" instruments for promoting products.Thailand requires food processors selling national brands to market low-price brandsalso, so that low-income consumers can find economy brands.In India we cannot sell electric appliances.Danger sign on cigarette packsPricing of medicines is regulatedControl on petroleum and diesel prices

PERSUADE – 1) To induce to undertake a course of action or embrace a point of view by means of argument or reasoning. Persuasion is used

to stimulate consumers to purchase products even if they do not really need it.

e.g. a) Cadbury Celebrations persuades consumers to buy it during festivalsb) Big Bazar organizes sales and discount offers on Republic Day etc. to persuade consumers to buy.

2) Communication used to motivate consumers to take action.- Tata Mcgraw hill

PRICE SKIMMING - 1) A Strategy of selling a new product or service at a high price that innovators and early adopters are willing to pay in order to obtain it after the high- price market segment becomes saturated and sales begin to slow down, the firm generally lowers the price to capture or skim the next most price sensitive segment.

- Tata Mcgraw Hill2) Pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion.

-Lamb, Hair and Mcdaniel3) Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management. It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price.

-Wikipedia4) A product pricing strategy by which a firm charges the highest initial price those customers will pay. As the demand of the first customers is satisfied, the firm lowers the price to attract another, more price-sensitive segment.

-investopedia

PRICE POSITIONING

It refers to the process of differentiating your product on the basis of price. i.e.Selling your product at such a price at which your competitors are not selling

For eg: Tata motors launched Tata Nano as lowest price car Micromax came up with wide range of cell phones available

at lowest price

QUANTITATIVE MARKETING RESEARCH

It is the application of quantitative research techniques to the field of marketing. It has roots in both the positivist view of the world, and the modern marketing viewpoint that marketing is an interactive process in which both the buyer and seller reach a satisfying agreement on the "four Ps" of marketing: Product, Price, Place (location) and Promotion.As a social research method, it typically involves the construction of questionnaires and scales. People who respond (respondents) are asked to complete the survey. Marketers use the information so obtained to understand the needs of individuals in the marketplace, and to create strategies and marketing plans.

RE POSITIONING

Repositioning refers to the strategy which the firm adopts when the demand of their product starts falling or people starts ignoring that product

For eg:

When onida failed in India they went to middle Asian countries

Surf re positioned itself as a high quality product when other products entered the market

REFERENCE GROUPS

Reference groups refers to those groups that have either direct or indirect influence on the costumer’s buying decision

For eg: Children like to buy Adidas cricket bat just because Sachin

Tendulkar uses the same

REMARKETINGRemarketing refers to the dedicated marketing efforts to spur demand for a product that is experiencing declining demand by marketing it as though it were a new product

For eg: Maruti Suzuki relaunched Maruti VERSA as EECO when

people were not buying versa

Tata motors launched Sumo Grande when their sumo was not successful

REMIND

Reminding refers to the process of ensuring that people continue buying your product. It thus creates TOMA among the costumers

For Eg: Colgate is being advertised on a continuous basis so as to

retain its costumers

RETAIL AUDIT

Study of a selected sample of retail outlets, provided as subscription-based service by market research firms. Retail-audit service providers gather information on a brand's sales volume, sales trends, stock levels, effectiveness of in-store display and promotion efforts, and other associated aspects.

For eg: The metropolitan cities having a population of more than

15 million have more than 20,000 retailers of mobile SIM cards; 60% of them would also be retailing mobile handsets

RETAIL MARKETING STRATEGY

Retail marketing strategy refers to how a store and its products sell goods to its target customers. Each type of retail business has to make decisions about all the details of its marketing mix. A marketing mix consists of the product, price, place, promotion and packaging. Internet marketing strategies and those for stores that people shop at in person must be developed to meet the needs of potential customers. A retail marketing strategy is first outlined in a business plan.

For eg: Amway sells their product through direct selling Hul sells their products through wholesaler , retailers and

then final costumers

RETAILING

Retailing may be defined as a process of selling goods and services to the consumers in small quantity through a number of small retail outlets

For Eg: Titan sells its watches through its retail outlets

Hul sell its entire product range through a number of retailers located in different areas

REVERSAL MARKETING

Reversal marketing is done where the people have a negative attitude towards your product. By this type of marketing the marketer creates a positive attitude in the minds of the consumers.Examples:

Hospitals provide various facilities like free health check-up Celebrating world heart day for avoiding heart related problems

ROUTINE BUYING BEHAVIOUR

Many products are bought under condition of low consumer involvement & absence of significant brand differences. The marketer should generalize the brand and provide wide distribution of the product.

Example

Consumer involvement is very low in frequently purchased products like salt, vegetables

PENETRATION PRICING

It is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. The strategy works on the expectation that customers will switch to the new brand because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term

For Eg: Micromax came with low priced cell phones

Nirma detergents are available at relatively lower prices

SEX/GENDER (SEGMENTATION)

Dividing a large population into homogeneous groups on the basis of gender / sex For eg:

Allen solly recently introduced a wide range of corporate clothing just for women

Hero Honda launched Pleasure scooters targeting all the girls

SEGMENT ATTRACTIVENESS

Use predetermined attractiveness criteria to determine attractiveness of each segment. It depends on various factors like segment profitability, segment size , growth in that particular segment

SEGMENT POSITIONING

It refers to the process of targeting your product to a particular segment of the market after identifying the needs and wants of that segment

For eg: Johnsons & Johnsons sells their products targeting all the

new born babies

Ponds sells their talcum products targeting only women

SEGMENT PROFITABILITY

Object within Profitability Analysis to which costs and revenues are assigned. A profitability segment corresponds to a market segment. You can calculate the profitability of a profitability segment by setting off its sales revenues against its costs. A profitability segment in an operating concern is defined by a combination of characteristic values.

SELECTIVE DE-MARKETING

Selective De-marketing refers to a situation where the selectively lay-off some of its costumers when it is faces excess demand for its productFor eg:

During Season usually Taj Hotels take back all the discounts that have so as to excludes those costumers who comes due to price factor Jet Airways throws swingers and switchers at the time of full occupancy in the flights giving preferences to its hard core customers

SELLING CONCEPT

Selling concept is derived from both, distribution and promotional concept.This type of strategy is also termed as the PUSH strategy. There is no demand for such products, but the marketers have to push the products so that the consumers buy them.For eg:Maruti Suzuki aggressively sold WagonR when costumers were not accepting it

TARGET MARKET

Target market refers to the particular market that the company wants to caterFor eg:Tag Heuer caters to only high end of the market

UNIQUE SELLING PROPOSITION

The Unique Selling Proposition (also Unique Selling Point). It states that such campaigns made unique propositions to the customer and that this convinced them to switch brands. The term was invented by Rosser Reeves of Ted Bates & Company. Today the term is used in other fields or just casually to refer to any aspect of an object that differentiates it from similar objects.

Domino's Pizza: "You get fresh, hot pizza delivered to your door in 30 minutes or less -- or it's free."

FedEx: "When your package absolutely, positively has to get there overnight"

Head & Shoulders: "You get rid of dandruff" Olay: "You get younger-looking skin"

Product:-1) A good, service, person, or idea consisting of a bundle of tangible

and intangible benefits that satisfies consumers' needs and wants.2) Of the Product is the most tangible and important single component

of the marketing programme.3) The goods or services that one enters the marketplace to market

and sell.4) Product is the building block of marketing plan.5) Product is the engine that pulls the rest of the marketing

programmes.6) Product is the vehicle by which a company provides consumer

satisfaction.7) Product is one of the component of the 4P’s.

8) Product is the external marketing plan and strategy. Product for the internal market is all the changes and innovations that are needed to make the external strategy work, including canges in people’s attitude and behavior.

Examples:-1) Maruti 800 is a product of Maruti Suzuki.2) Tata Nano is a product of Tata Motors.3) Fast Track is a product of Titan.4) Motorazr is a product of Motorla.5) Passion is a product of Hero Honda.

PRODUCT APPRAISAL AND PRODUCT APPRAISAL TABLE:-Product Appraisal:- Product appraisal is the process of evaluating how much a product is worth. This is done by comparing the performance of the product against comparable products on the market.Product Appraisal Table:- The Product Appraisal Table is a standardized layout for doing the comparison for Product Appraisal.

PRODUCT BUNDLE PRICING:- 1) It is defined as “combining several products and offering the

bundle at a reduced price”.2) Product bundling is a marketing strategy that involves offering

several products for sale as one combined product

Examples:-1) “Xbox 360 Super Elite 250GB Bundle,” for example, includes an

Xbox 360 console, Final Fantasy XIII, an Xbox 360 250GB hard drive, 2 Xbox 360 wireless controllers, an Xbox 360 wired headset, an Ethernet cable, a standard definition Xbox 360 composite A/V/ cable, and a Final Fantasy face plate. This package sells at a price of $399. This saves the customer roughly $35 compared to if these items were purchased individually.

2) In the fast food industry in which multiple items are combined into a complete meal.

PRODUCT DIFFERENTIATION:-

1) A marketing process that showcases the differences between products. Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products.

2) It is the process of distinguishing a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own product offerings.

3) Product Differentiation is concerned with the bending of demand to the will of supply.(-Smith)

4) It represents a product orientated approach that it is an ‘inside out’ management attitude to marketing planning.

5) The process of creating and designing products so that consumers perceive them as different from competing products.(-marketing concept and stratergies-biztantra-pride,fenell).

Examples:-1) Wheaties is The Breakfast of Champions. Bran Flakes is, well,

bran flakes. [Packaging]Tide costs $5 per bottle. Safeway detergent costs $3.00 per bottle. [Pricing]Folgers coffee is made from Robusto coffee beans. Millstone Coffee is made from Arabica beans. (Both come from the same company BTW) [ingredients]

2) chocolate bars.product differentiation through packaging, product quality(different ingredient content) and brands.

PRODUCT DISTRIBUTION:-1) The process of making the goods available to the consumers

from the manufacturers.2) The ratio in which the finished goods is sent off to the market.3) Making the goods available to the target market.

Examples:-1) Pepsi has good production distribution system due to which it is

available even in rural areas.2) Hera Honda its product available in all over India by a good

distribution system.

3) Duck Bags distributes its products more in Pondicherry and other areas where there is rainfall for longer duration in a year.

PRODUCT LAUNCH:-1) The debut of a product into the market. The product launch

signifies the point at which consumers first have access to a new product.

2) The promotional plan for the introduction of a new product.3) The orchestrated introduction of a new product (or version of a

product) to the market

Examples:-1) The product launch of Diet Coke failed as people wanted to drink

soft drink which has fully real and enjoyable.2) Recently Mahindra launched its motor bike ‘Mahindra Stallio’

which is promoted by Aamir Khan.3) Samsung recently launched ‘Samsung Galaxy’ mobile phone.4) Coca Cola recently launced its product ‘Minute Made Nimbu

Fresh’ to attack Pepsi’s ‘Nimbooz’.

PRODUCT LINE:-1) It is a group of products that is closely related because they

perform a similar function, target at the same customer groups, and marketed through same channels.

2) Product lining is the marketing strategy of offering for sale several related products.

3) Pricing different products within the same product range at different price points.

4) Product lines: a group of products, closely related by production or marketing considerations, that exists within the overall product mix.

5) Product Line: Product line is a collection of products, offered by a firm, that satisfy similar needs for different target audiences. Thus all products within a product line are related, but may vary in terms of size, color, quality etc.

6) A set of related products sold by a single company.

Examples:-

1) An example would be a video manufacturer offering different video recorders with different features at different prices.

2) Nokia produces a wide range of mobile phones throughout the year which has different features.

3) HP produces a wide range of printers. 4) LG produces different varities of television, mobiles, AC’s and

other consumer durables.5) Hero Honda provides a wide range of Motor Bikes.

PRODUCT MIX:-1) The complete set of all products offered by a firm is called its

product mix. (Marketing-TMH-Grewal and Levy)2) It is the set of all products lines and items that a particular

company offers to buyers.(marketing management-asian books-s k sarangi).

3) The number of individual products produced or sold by an organization.

4) This goes beyond simple inventory to take into account which products bring the most revenue, are the most popular and which are less so.

5) All of the different products that a company makes or sells.6) The set of all product lines and items that a particular business

offers for sale to buyers7) All of the products in a seller's total product line.

Ex:- Colgate-Palmolive Product Mix.Oral Care Personal Care Household

CareFabric Care Pet

NutritionToothpaste(Colgate Total)

Deodorants(Speed Stick)

Dishwashing Liquid(Palmolive)

Laundry detergents(Fab)

Hill’s Pet Nutrition-Dog food(Science Diet)

Toothbrush(Colgate Plus)

Bar Soaps(Irish Spring)

Automatic dishwashing liquid(Palmolive)

Fabric Softener(Suavitel)

Cat food(Science Diet)

Kid’s Product(Colgate Barbie Fruit toothpaste)

Body Wash(Soft Soap)

Household Cleaners(Ajax)

Whitening Products(Colgate Simply White)

Handwash(Soft Soap)

Dish Wipes(Palmolive)

Floss(Colgate Total Dental Floss)

Men’s toiletries(Skin Bracer Aftershave)

Oral First Aid(Colgate Orabase)

PRODUCT PROMOTION:-1) Communication used by a business to convince potential

customers to buy a specific product.2) Product Promotion involves disseminating information about a

product, product line, brand, or company.

Examples:-1) Coke in Taal was the first active product placement.

2) In American Idol the camera frequently showed the glasses of the judges in which Coke was written and judges used to sip coke through the glass.

3) While telecasting Cricket Tournaments companies generally promote their product by Ads which generally consists of Soft Drinks, Automobiles, Snacks.

PRODUCT RELATED SEGMENTATION:-1) The method of identifying consumers by consumption or

amount of product usage, usually categorized psychographically or demographically.

2) Percentage or number of a sample that represent the population.

3) Projected population4) Degree of loyalty that consumers feel towards the brand.

Exampes:-1) Rasna, for example is shown as being used in different situations

like a party, for unexpected guests, a drink at the end of a long and tiring work day, etc

2) Taj group of hotels identifies those people who will be loyal to them even if they increase their prices. This is done by product related segmentation.

PROMOTION:-1) The idea that you can merchandise candidates for high office,

like breakfast cereal, is the ultimate indignity of the democratic process-Adlai Stevenson.

2) Advertisements contain the only truths to be relied on in a newspaper- Thomas Jefferson.

3) Promotion is defined as the co-ordinated self initiated efforts to establish channel of information and persuasion to facilitate or foster the sale of goods or services, or the acceptance of ideas.

4) Promotion is persuasive communication to inform potential consumers of the existence of products, to persuade and

convince them that those products have want satisfying capabilities.

5) The method by which the benefits of those goods and services are communicated in an effort to justify the price.

6) Communicating with the consumers under the relevant heading i.e. advertising, sales force, sales promotion, public relations, exhibitions, direct mail etc.

7) Promotion is a form of communication with an additional element of persuasion to accept ideas, products, services.

8) Promotion is an important marketing strategy and is the spark-plug of the marketing-mix.

9) Promotion helps people know that the right product at right price is available at right place.

10) Promotion is the process of marketing communication to inform, persuade, remind and influence consumers in favour of a product or service.

Examples:-1) Big Bazaar promotes itself by promising to have the lowest price

products and in its Ad’s it uses Dhoni and Asin. It even promotes by giving Discount offers and lowest price on Wednesday.

2) Micromax mobile uses promotion strategy of sponsoring Cricket Tournaments and the Bollywood events. It even promotes to have the latest technology at lowest price.

Promotional Merchandise:-1) These are articles of merchandise that are branded with a logo

and used in marketing and communication programs. 2) Promotional Merchandise is anything that can be imprinted with

your company info, and then provided aside to customers or prospects.

Examples:-

1) Nike uses a tick mark as promotional merchandise in all its products.

2) Parle Hippo Chips has a hippopotamous which is black in colour as its promotional merchandise.

3) The Commonwealth Games recently held in Delhi had Shera, a tiger as its promotional merchandise.

PSYCHOGRAPHIC SEGMENTATION:-

1) It is the science of using psychology and demographics to better understand consumers.

2) Psychographic segmentation is based on traits, attitudes, interests, or lifestyles of potential consumer groups.

Examples:-1) Mc Donald’s changed their menu in India to adapt to the

consumer preferences.They avoided beef and introduced vegetarian burger.

2) Titan’s Fasttrack brand appeals to the young youth.3) Titan’s value for money brand, Sonata, targets people who want

good looking watches at reasonable price.4) Femina, a woman’s magazine is targeted at the woman with a

broader world-view.5) Instant Noodle manufacturers, ready-to-eat, fast-to-cook food

brands such as Maggi, Top Ramen, etc target at time constrained customers.

PSYCHOLOGICAL PRICING:-

1) The recognition that buyer's beliefs and perceptions affect their evaluations of prices.

2) A pricing technique that creates an illusion for customers or that makes shopping easier for them.

3) Setting prices according to the psychographics of the aimed-at market segment.

4) Setting the price of a product based on the wanted public perception for that product- Cabe Kline.

5) Refers to consumer perceptions of retail prices.6) using price as a means of influencing a consumer's behaviour or

perceptions.

7) A pricing approach that considers the psychology of prices and not simply the economics-Kotler.

Examples:-1) Bata produces products which are priced like Rs99 or Rs599 or

Rs999 to get the psychological pricing advantage.2) Tata Sky has schemes which are priced as Rs149, Rs 299 etc.

and not round figures.3) Koutions price their products i.e. shirts and trousers as Rs 999

only or Rs 1299 only to the advantage of the consumers regarding pricing.

PUBLIC RELATIONS:-1) Includes communications directed internally to employees of the

company or externally to consumers, other firms, the government and the media – Kotler.

2) A variety of programs designed to promote or protect a company’s image or its individual products.

3) Mass-communications for which, unlike advertising, there is no direct payment from the originating organization to the media carrying the information.

4) to communicate information about the organization and/or its products and services to audiences that may go beyond prospective customers, to include any other group that the organization wishes to influence, such as investors or governments.

5) The total process of building goodwill towards a business enterprise and securing a bright public image of the company is called public relations. –S.K.Sarangi

Examples:-1) When Honda Motors had to call back its Honda City model its PR

manager had to give official statement about it.2) When ever any company need to address the media the

generally the public relation officer makes the necessary arrangements for it.

PURCHASE BEHAVIOR:- 1) Purchase Behavior is the decision processes and acts of people

involved in buying and using products.2) Purchase decision making pattern that is a complex amalgam of

needs and desires, and is influenced by factors such as the consumer's (1) societal role (parent, spouse, worker, etc.), (2) social and cultural environment and norms, and (3) aspirations and inhibitions.

Examples:-1) While buying a mobile a person will keep in mind the

requirements from the mobile i.e. for official purpose, listening music, quality camera, etc. Then need to look for the products and the companies which satisfy the condition, then look for the pricing, after consulting every one the final decision is made.

PURCHASE DECISION:-1) The stage in the customer buying process when the purchase

decision is actually made.2) It is the aspects which are kept in mind while purchasing a

product. These aspects are the Product choice, brand choice, dealer choice, purchase amount, purchase timing, payment method.

3) The consumers preference among the brands in the choice set and the intention to buy the most preferred brand.

4) Having developed an intention to buy something, the consumer will (barring interference or unforeseen events) follow through and make the purchase.

5) Through the evaluation process consumers will reach their final purchase decision and they reach the final process of going through the purchase action.

Examples:-1) While buying a Mobile Phone when all the requirements is

satisfied and the buyer is satisfied with the brand, product, distributor, payment scheme he /she makes the final decision to buy a particular mobile.

PURCHASE INTENTION:-1) A plan to purchase a particular good or service in the future.

2) Purchase Intentions the likelihood that a consumer will buy a particular product resulting from the interaction of his or her need for it, attitude towards it and perceptions of it and of the company which produces it.

3) A measure of the claimed level of future consumption of a PRODUCT or service by target customers who almost invariably overstate their subsequent purchase behavior

Examples:-1) A consumer who likes the product and would definitely like to

use it has made a purchase intention and would use the product.

SEGMENT POSITIONING

A marketing strategy is based on expected customer behaviour in a certain market. In order to know the customer and its expected buying process of segmenting and positioning is needed. These processes are chronological steps which are dependent on each other- Philip Kotler

SEGMENT PROFITABILITY

Object within Profitability Analysis to which costs and revenues are assigned. A profitability segment corresponds to a market segment. You can calculate the profitability of a profitability segment by setting off its sales revenues against its costs. A profitability segment in an operating concern is defined by a combination of characteristic- Philip Kotler

SELECTIVE DE-MARKETING

It is a marketing strategy employed in a condition of overfull demand. The marketer employs a selective de-marketing of their product. Out of the various steps, a few of them may be: increasing price, cancelling all incentives etc.

Examples:

• Due to the high demand of I-phone, selective de-marketing was employed• Goa tourism during the time of new year faces the same situation andhence adopts this type of marketing.

SELECTIVE DISTRIBUTION

Selective distribution is when the manufacturer relies on more than a few but all of the intermediaries willing to carry a particular product. The company does not need to worry about too many outlets; it can gain adequate market coverage with more control and less cost than intensive distribution. - Philip Kotler

SELECTIVE SPECIALIZATION

This is a multiple segment strategy also known as a differentiated strategy. Where the firm decides to target several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups. An example of this would be airline companies offering first, business (segment 1) or economy class tickets (segment 2) , with separate marketing programmed to attract the different groups.

SELLING CONCEPT

The selling concept, another common business orientation, holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers must be coaxed into buying, so the company has a battery of selling and promotion tools to stimulate buying. The selling concept is practiced most aggressively with unsought goods—goods that buyers normally do not think of buying, such as insurance and funeral plots. The selling concept is also practiced in the nonprofit area by fund-raisers, college admissions offices, and political parties. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants. In modern industrial economies, productive capacity has been built up to a point where most markets are buyer markets (the buyers are dominant) and sellers have to scramble for customers. Prospects are bombarded with sales messages. As a result, the public often identifies marketing with hard selling and advertising. But marketing based on hard selling carries high risks. It assumes that customers who are coaxed into buying a product will like it; and if they don’t, that they won’t bad-mouth it or complain to consumer organizations and will forget their disappointment and buy it again. These are indefensible assumptions. In fact, one study showed that dissatisfied customers may bad-mouth the product to 10 or more acquaintances; bad news travels fast, something marketers that use hard selling should bear in mind.

SERVICES

Service is “any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything”. - Philip Kotler

Provision of assistance to customers and clients

ExamplesAirtel provides mobile network, internet services to the customer

Blue Dart provide courier services

Taj group of Hotels provide hospitality services

Airlines industry provides transport services

SHOPPER MARKETING

Shopper marketing is a form of marketing which focuses on appealing to people who are actively in the process of purchasing products. This differs from marketing targeted at consumers in general to get them to buy products, although this type of marketing plays a role in shopper marketing campaigns. Essentially, shopper marketing is marketing in the purchase environment, whether that is a retail store, a website, or a wholesaler. Not all companies use shopper marketing as a tool, but those which do may pursue extensive advertising campaigns to get their messages out.

E.g.: Frequent flyer scheme for regular user of an airline company. Membership card by retail stores like shoppers stop, pantaloons to customer providing benefits at many other outlets in addition to the discount provided.

SINGLE SEGMENT STRATEGY

A single segment strategy involves the firm choosing its single preferred market segment and targeting it with a single marketing mix, aimed at serving the segment as well as possible. This is generally chosen by a smaller firm, or one which has only located one attractive market segment. E.g.: Automobile companies like Mercedes, Audi, and BMW targets the upper segment of the society.

SOCIAL CLASS:

Sociology identified that social stratification is common among many societies. Social class is a type of stratification. Social classes are relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests and behaviour.

SOCIAL FACTORS

They include reference groups, family, and roles and statuses of a person.

Reference groups

Reference groups influence a person’s behaviour directly or indirectly.

Groups having a direct influence on a person are called membership groups. People are influenced in the consumption and purchase decisions by groups in which they are members like family, friend circle, neighbours, co-workers, sports teams etc.

People are also influenced by groups to which they do not belong presently, but want to belong in course of time. Such groups are called aspirational groups.

Family

Family members constitute the most influential primary reference group or membership group. Each person has a family of orientation that consists of his parents, brothers and sisters. He has a family of procreation consisting of spouse and children.

Statuses and roles

People choose products that communicate their status in society. Marketers have to aware of the status symbol potential of products and brands. Each status has a role or group of activities to be performed. Persons have multiples statuses in different groups to which they belong. Therefore the roles have some bearing on the consumption and purchase decisions.

SOCIO-CULTURAL ENVIRONMENT:

SOCIO-CULTURAL ENVIRONMENT: Purchasing power is directed toward certain goods and services and away from others according to people's tastes and preferences. Society shapes the beliefs, values, and norms that largely define these tastes and preferences. People absorb, almost unconsciously, a worldview that defines their relationships to themselves, to others, to organizations, to society, to nature, and to the universe.

Examples:• Color of products in Islamic country is dominantly green for eg Colgate, thumbs up.

• McDonald use yellow colour for the face of its mascot Ronald in south East Asian country and white across the world as white color considered as sickness.

• South Asian countries like Thailand uses more vibrant colours as compared to country like France use subtle shades.

• Phillips launched electric shavers in japan they failed in miserably because the size of palm of average Japanese is smaller than men from other nations.

• HMT, moved to countries like Vietnam and Kenya as they have to modify the size of tractor because average size of farmer is 5ft and 6ft respectively.

• Shopping trends of various countries are persuaded by festive seasons for example inIndia people tend to shop around dhanteras, Hyderabad-Bangalore side people shop during ramzan.

SOCIAL MARKETING CONCEPT

Some have questioned whether the marketing concept is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and neglected social services. Are companies that successfully satisfy consumer wants necessarily acting in the best, long-run interests of consumers and society? The marketing concept sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare. Yet some firms and industries are criticized for satisfying consumer wants at society’s expense. Such situations call for a new term that enlarges the marketing concept. We propose calling it the societal marketing concept, which holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being. The societal marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. They must balance and juggle the often conflicting criteria of company profits, consumer want satisfaction, and public interest. Yet a number of companies have achieved notable sales and profit gains by adopting and practicing the societal marketing concept. Some companies practice a form of the societal marketing concept called causerelated marketing. Pringle and Thompson define this as “activity by which a company with an image, product, or service to market builds a relationship or partnership with a

‘cause,’ or a number of ‘causes,’ for mutual benefit. They see it as affording an opportunity for companies to enhance their corporate reputation, raise brand awareness, increase customer loyalty, build sales, and increase press coverage. They believe that customers will increasingly look for demonstrations of good corporate citizenship. Smart companies will respond by adding “higher order” image attributes than simply rational and emotional benefits. Critics, however, complain that cause-related marketing might make consumers feel they have fulfilled their philanthropic duties by buying products instead of donating to causes directly.

Examples Aircel launched ‘save the tiger’ campaign to develop awareness

about saving the tiger

ITC generates funds for child education by donating Re.1 for each product sale

HUL did a Lifebuoy campaign to generate awareness of the importance of washing hands.

STOCHASTIC MODELLING

A stochastic model would be to set up a projection model which looks at a single policy, an entire portfolio or an entire company. But rather than setting investment returns according to their most likely estimate, for example, the model uses random variations to look at what investment conditions might be like.Based on a set of random outcomes, the experience of the policy/portfolio/company is projected, and the outcome is noted. Then this is done again with a new set of random variables. In fact, this process is repeated thousands of times. At the end, a distribution of outcomes is available which shows not only the most likely estimate but what ranges are reasonable too. The most likely estimate is given by the distribution curve's (formally known as the Probability density function) center of mass which is typically also the peak(mode) of the curve, but may be different e.g. for asymmetric distributions.Examples:

A minimum investment return of 5% per annum. A deterministic simulation, with varying scenarios for future investment return, does not provide a good way of estimating the cost of providing this guarantee. This is because it does not allow for the volatility of investment returns in each future time period or the chance that an extreme event in a particular time period leads to an investment return less than the guarantee.

This is useful when a policy or fund provides a guarantee, e.g Stochastic modelling builds volatility and variability (randomness) into the simulation and therefore provides a better representation of real life from more angles.

STRATEGIC CONTROL

From time to time, companies need to undertake a critical review of overall marketing goals and effectiveness. Each company should periodically reassess its strategic approach to the marketplace with marketing-effectiveness reviews and marketing audits.

➤ The marketing-effectiveness review. Marketing effectiveness is reflected in the degree to which a company or division exhibits the five major attributes of a marketing orientation: customer philosophy (serving customers’ needs and wants), integrated marketing organization (integrating marketing with other key departments), adequate marketing information (conducting timely, appropriate marketing research), strategic orientation (developing formal marketing plans and strategies), and operational efficiency (using marketing resources effectively and flexibly). Unfortunately, most companies and divisions score in the fair-to-good range on measures of marketing effectiveness.

➤ The marketing audit. Companies that discover marketing weaknesses shouldundertake a marketing audit, a comprehensive, systematic, independent, andperiodic examination of a company’s (or SBU’s) marketing environment, objectives,strategies, and activities to identify problem areas and opportunities andrecommend a plan of action for improving the company’s marketingperformance.34 The marketing audit examines six major marketing components:(1) the macroenvironment and task environment, (2) marketing strategy,

(3) marketing organization, (4) marketing systems, (5) marketing productivity, and(6) marketing function (the 4 Ps).

Highly successful companies also perform marketing excellence reviews and ethicalsocial responsibility reviews to gain an outside-in perspective on their marketing activities.

➤ The marketing excellence review. This best-practices excellence review rates a firm’s performance in relation to the best marketing and business practices of highperforming businesses. The resulting profile exposes weaknesses and strengths and highlights where the company might change to become a truly outstanding player in the marketplace.

➤ The ethical and social responsibility review. In addition, companies need to evaluate whether they are truly practicing ethical and socially responsible marketing.Business success and continually satisfying customers and other stakeholders are

STRATEGY FORMULATION

Goals indicate what a business unit wants to achieve; strategy describes the game plan for achieving those goals. Every business strategy consists of a marketing strategy plus a compatible technology strategy and sourcing strategy. Although many types of marketing strategies are available, Michael Porter has condensed them into three generic types that provide a good starting point for strategic thinking: overall cost leadership, differentiation, or focus.➤ Overall cost leadership: Here the business works to achieve the lowest production and distribution costs so that it can price lower than competitors and win more market share. Firms pursuing this strategy must be good at engineering, purchasing, manufacturing, and physical distribution; they need less skill in marketing. Texas Instruments uses this strategy. The problem is that rivals may emerge with still lower costs, hurting a firm that has rested its whole future on cost leadership.➤ Differentiation: Here the business concentrates on achieving superior performance in an important customer benefit area, such as

being the leader in service, quality, style, or technology—but not leading in all of these things. Intel, for instance, differentiates itself through leadership in technology, coming out with new microprocessors at breakneck speed.➤ Focus: Here the business focuses on one or more narrow market segments, getting to know these segments intimately and pursuing either cost leadership or differentiation within the target segment. Airwalk shoes, for instance, came to fame by focusing on the very narrow extreme-sports segment.Firms that do not pursue a clear strategy—“middle-of-the-roaders”—do the worst. International Harvester fell upon hard times because it did not stand out as lowest in cost, highest in perceived value, or best in serving some market segment.Middle-of-the-roaders try to be good on all strategic dimensions, but because strategic dimensions require different and often inconsistent ways of organizing the firm, these firms end up being not particularly excellent at anything.Strategy formulation in the age of the Internet is particularly challenging. The chemical company Solutia, a Monsanto spinoff, copes by creating four different, possible short-term scenarios for each strategy. This allows the firm to act quickly when it sees a scenario unfolding. Sun Microsystems holds a weekly meeting with the firm’s top decision makers to brainstorm strategies for handling new threats. By revisiting strategic plans frequently, both companies are able to stay ahead of environmental changes.

SWOT ANALYSIS

SWOT Analysis – The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats. It’s a way of monitoring the external and internal marketing environment.

External Environment AnalysisIn general, a business unit has to monitor key macroenvironment forces (demographic, economic, technological, political-legal, and social-cultural) and microenvironment actors (customers, competitors, distributors, and suppliers) that affect its ability to earn profits (see Chapter 4 for more detail). Then, for each trend or development, management needs to identify the associated marketing opportunities and threats. A marketing opportunity is an area of buyer need in

which a company can perform profitably. Opportunities can be classified according to their attractiveness and their success probability. The company’s success probability depends on whether its business strengths not only match the key success requirements for operating in the target market, but also exceed those of its competitors. Mere competence does not constitute a competitive advantage. The best-performing company will be the one that can generate the greatest customer value and sustain it over time.An environmental threat is a challenge posed by an unfavorable external trend or development that would lead, in the absence of defensive marketing action, to deterioration in sales or profit. Threats should be classified according to seriousness and probability of occurrence. Minor threats can be ignored; somewhat more serious threats must be carefully monitored; and major threats require the development of contingency plans that spell out changes the company can make if necessary.

INTERNAL ENVIRONMENT ANALYSISIt is one thing to discern attractive opportunities and another to have the competencies to succeed in these opportunities. Thus, each business needs to periodically evaluate its internal strengths and weaknesses in marketing, financial, manufacturing, and organizational competencies. Clearly, the business does not have to correct all of its weaknesses, nor should it gloat about all of its strengths. The big question is whether the business should limit itself to those opportunities in which it possesses the required strengths or consider better opportunities to acquire or develop certain strengths.Sometimes a business does poorly because its departments do not work together well as a team. It is therefore critically important to assess interdepartmental working relationships as part of the internal environmental audit. Honeywell, for example, asks each department to annually rate its own strengths and weaknesses and those of the other departments with which it interacts. The notion is that each department is a “supplier” to some departments and a “customer” of other departments. If one department has weaknesses that hurt its “internal customers,” Honeywell wants to correct them.

Hero Honda

Strengths – Recognised and established brand name Effective advertising capability After sales service High end Technology Low maintenance Fuel – efficiency Wide distribution network

Weaknesses – It is vulnerable to joint venture as Honda Motors has much control Brand name ‘Hero’ is itself not close to the automobile industry R&D not close to the manufacturing plant

Opportunities – Global expansion Expansion of target market (including women)

Threats – Bajaj is a strong competitor Increase in price of petroleum and raw materials

TECHNO-LEGAL FACTOR :

The techno-legal environment is perhaps one of the fastest changing factors in the macro environment. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. As these markets develop it can create new markets and new uses for products. It also requires a company to stay ahead of others and update their own technology as it becomes outdated.

Example:

• In an ambitious endeavour, Samsung had launched a digital home business. In Korea, Samsung has 6,000 networked homes that are outfitted with Internet-enabled ovens, refrigerators, security cameras,

and wall-mounted flat-panel displays. Samsung is looking to take the idea abroad.

• Left hand side –right hand side drivers

• Cdma card used in japan

• Social security number in usa

• UID no in india

• Blackberry case-messages have to decrypted by government of india

• Fuel-98-99% octane fuel

• Harley Davidson changed engine in india

Information technology (IT) is "the study, design, development, application, implementation, support or management of computer-based information systems, particularly software applications and computer hardware", according to the Information Technology Association of America (ITAA).[1] IT deals with the use of electronic computers and computer software to securely convert, store, protect, process, transmit, input, output, and retrieve information. Innovations Innovation can be seen as the process that renews something that exists and not, as is commonly assumed, the introduction of something new. Discovery is the act of detecting something new. The Internet is a global system of interconnected computer networks and serves billions of users worldwide. It is a network of networks that consists of millions of private, public, academic, business, and government networks, of local to global scope, that are linked by a broad array of electronic and optical networking technologies.

Rate of Technology transfer - Technology transfer is the process of sharing of skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials or services. It is closely related to (and may arguably be considered a subset of knowledge transfer.

Rate of Obsolescence: Obsolescence is the state of a being which occurs when an object, service or practice is no longer wanted even though it may still be in good working order.

Obsolescence frequently occurs because a replacement has become available that is superior in one or more aspects. Obsolete refers to something that is already disused or discarded, or antiquated. Typically, obsolescence is preceded by a gradual decline in popularity.

USP

The Unique Selling Proposition (also Unique Selling Point or USP) is a marketing concept that was first proposed as a theory to explain a pattern among successful advertising campaigns of the early 1940s. It states that such campaigns made unique propositions to the customer and that this convinced them to switch brands. The term was invented by Rosser Reeves of Ted Bates & Company. Today the term is used in other fields or just casually to refer to any aspect of an object that differentiates it from similar objects.

A number of businesses and corporations currently use USPs as a basis for their marketing campaigns.

Some good current examples of products with a clear USP are:

Head & Shoulders : "You get rid of dandruff" Olay : "You get younger-looking skin"

Some unique propositions that were pioneers when they were introduced:

Domino's Pizza : "You get fresh, hot pizza delivered to your door in 30 minutes or less -- or it's free."

FedEx : "When your package absolutely, positively has to get there overnight"

TOP OF MIND AWARENESS (TOMA)

"When people think of you first to fulfill their product or service needs."

TOMA has traditionally been defined as "the percent of respondents who, without prompting, name a specific brand or product first when asked to list all the advertisements they recall seeing in a general product category over the past 30 days. Companies that are well known advertise heavily and have attention-getting ads that tend to receive the highest top of mind awareness scores in ad tracking studies.

Another definition is, "Owning the space that your product or service occupies between your prospects' ears. That way, when they're ready to buy they think of you first."

Another way to explain TOMA is to ask, "Whom do you think of first when you think of [product/service]?" The answer to that question is the company that has achieved Top of Mind Awareness with you. TOMA varies from consumer to consumer.

"Top of Mind Awareness" is a way to measure how well brands rank in the minds of consumers. Companies that build brand awareness tend to also rank highly in "Top of Mind Awareness." Thus, TOMA correlates strongly with market share of a product.

For companies that conduct high-dollar transactions, Top of Mind Awareness is particularly important. Mortgage Brokers, Real Estate Agents, and Auto Dealerships are particularly reliant on Top of Mind Awareness. However, TOMA holds value for companies offering products and services of all transaction levels.

VIRAL MARKETING

Marketing phenomenon that facilitates and encourages people to pass along a marketing message.

Viral marketing depends on a high pass-along rate from person to person. If a large percentage of recipients forward something to a large number of friends, the overall growth snowballs very quickly. If the pass-along numbers get too low, the overall growth quickly fizzles.

Viral marketing and viral advertising, (buzzwords), refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of virus or computer viruses. It can be word-of-mouth delivered or enhanced by the network effects of the Internet.[1] Viral promotions may take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, or even text messages.

On July 14 2010, Old Spice launched the fastest growing online viral video campaign ever, garnering 6.7 million views after 24 hours, ballooning over 23 million views after 36 hours[21]. Old Spice's agency created a bathroom set in Portland, OR and had their TV commercial star, Isaiah Mustafa, reply to 186 online comments and questions from websites like Twitter, Facebook, Reddit, Digg, Youtube and others. The campaign ran for 3 days.

Between December 2009 and March 2010 a series of seven videos were posted to YouTube under the name "iamamiwhoami" leading to speculation that they were a marketing campaign for a musician. In March 2010, an anonymous package was sent to an MTV journalist claiming to contain a code which if cracked would give the identity of the artist. The seventh video, entitled 'b', appears to feature the Swedish singer Jonna Lee

VALUE PRICING

Value pricing is a method in which the company charges a fairly low price for a high quality offering. Value pricing says that the price should represent a high-value offer to consumers. This is a major trend in the computer industry, which has shifted from charging top dollar for cutting-edge computers to offering basic computers at lower prices. For instance, Monorail Computer started selling PCs in 1996 for as little as $999 to woo price-sensitive buyers. Compaq and others quickly followed suit. More recently, eMachines began selling its PCs for less than $500 without a monitor, targeting the 55 percent of computerless households with annual incomes of $25,000 to $30,000.13

Value pricing is not a matter of simply setting lower prices on one’s products compared to those of competitors. It is a matter of reengineering the company’s operations to become a low-cost producer without sacrificing quality, and lowering prices significantly to attract a large number of value-conscious customers. An important type of value pricing is everyday low pricing (EDLP), which takes place at the retail level.

Retailers such as Wal-Mart and Amazon.com use EDLP pricing, posting a constant, everyday low price with few or no temporary price discounts. These constant prices eliminate week-to-week price uncertainty and can be contrasted to the “high-low” pricing of promotion-oriented competitors. In high-low pricing, the retailer charges higher prices on an everyday basis but then runs frequent promotions in which prices are temporarily lowered below the EDLP level.

Retailers adopt EDLP for a number of reasons, the most important of which is that constant sales and promotions are costly and erode consumer confidence in the credibility of everyday prices. Consumers also have less time and patience for such time-honored traditions as watching for specials and clipping coupons. Yet promotions are an excellent way to create excitement and draw shoppers. For this reason, EDLP is not a guarantee of success. As supermarkets face heightened competition from store rivals and alternative channels, many are drawing shoppers using a combination of high-low and EDLP strategies, with increased advertising and promotions.

WORD OF MOUTH MARKETING

According to the Word-of-mouth Marketing Association this is defined as “giving people a reason to talk about your products and services, and making it easier for that conversation to take place. It is the art and science of building active, mutually beneficial consumer-to-consumer and consumer-to-marketer communications.

Word of mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication (literally words from the mouth), but now includes any type of human communication, such as face-to-face, telephone, email, and text messaging.

Grewal, R., T.W. Cline, and A. Davies, 2003. Early-Entrant Advantage

An unpaid form of promotion in which satisfied customers tell other people how much they like a business, product or service.

Word of Mouth Marketing (also called Online Endorsement Marketing) is a marketing strategy which uses the person-to-person communication of satisfied customers to raise awareness of an organization’s products and services and generate sales.

George Silverman, How to Trigger Exponential Sales Through Runaway Word of Mouth