MARKETING AND BRAND MANAGEMENT

Discuss traditional and modern marketing with

suitable examples?

Marketing isn’t a brand-new concept, but due to today’s technological

advancements, marketing a product or service has certainly changed.
Thanks to the accessibility the internet provides, a lot of businesses are
using the digital landscape to reach a wider audience. However, this
doesn’t mean that traditional marketing is down for the count because
there are companies that still use traditional marketing strategies.

With two marketing concepts to choose from, many business owners

find it challenging to implement a marketing strategy that works best
for their brand. It’s no secret that traditional marketing has withstood
the test of time, but the appeal of modern marketing is difficult to
ignore. Fortunately, this article can help business owners reach a
decision by discussing the contrasts of the two marketing strategies.

What is Traditional Marketing?

Traditional marketing has been used and enjoyed by people all over the
world, so it’s no surprise that everyone is familiar with this concept.
It’s also designed to focus more on selling a certain service or product
and uses a variety of mediums to advertise a brand.

Because of these factors, traditional marketing is easier to understand,

and companies won’t have any difficulty explaining their product or
service to various age groups. It also works best with a local audience
because it can be centralised in a city or region. What’s more, they can
be accessed without an internet connection and kept for reuse.

Some of the most commonly used traditional marketing strategies

include the following:

 Business cards. This type of traditional marketing strategy is a

quick way for a company or individual to spread their
information. As such, it’ll forever endure the ever-changing
marketing strategy landscape.
 TV and radio ads. Thousands of people tune in to the radio every
day, so advertising a product or service through this channel still
works.
 Flyers and brochures. Flyers and brochures are designed to
capture the attention of a wide audience. They typically use
vibrant colours to convey a message or display an image the
reader can easily remember.
 Billboards and signage. Using outdoor billboards and signage
are great ways to advertise a business to daily drivers, commuters,
and people who are walking around the city.
 Direct mail. This traditional marketing strategy is used to spread
awareness of a certain product or service to a specific target
market. It uses a mail service to deliver promotional printed
pieces like postcards, brochures, and letters.

What is Modern Marketing?

While traditional marketing’s focal point is the company’s product or

service, modern marketing is more customer-oriented. Businesses that
adopt a modern strategy always put their consumers’ satisfaction above
all else, so they’re able to address their audience’s unique wants and
needs.

Since modern marketing uses a digital platform, it’s more

customisable. It can also easily adapt to change, so it has no problem
keeping up with the latest marketing trends. Plus, it can be accessed on
any device, which means companies have a higher chance of reaching
a global audience. All of these factors help build customer loyalty and
trust, as well as worldwide brand recognition.

The following examples are some of the most popular modern

marketing strategies used today:

 Email marketing. With the highest ROI of all marketing

channels, email marketing should be a part of your modern
marketing strategy. It allows you to engage with your customers,
notify them of upcoming promotions, and more.
 Internet ads. From Google to YouTube to Facebook, there’s no
shortage of platforms where you can grow your brand through
paid advertisements. And with the right data, you can ensure the
ads are reaching your target audience.
 E-Commerce Websites. If you sell physical or digital products,
an e-commerce website is a must for your business. It allows
customers to purchase your products without visiting a physical
storefront, meaning you can reach a larger audience.
 Using social media sites like Facebook, Twitter, and
Instagram. Social media platforms have built-in data analytics
tools that enable brands to track their performance, engagement,
and ad campaigns. It’s also easier to create a buzz using
 Facebook, Twitter, or Instagram due to online marketing trends
like using hashtags.
 Search engine optimisation (SEO). SEO is the practice of
optimising your website to improve its rankings/position in
search results. With the right technical, on-page, and off-page
optimisations, your site will be the first result users see when
they're searching for a product or service.

What are Integrated Marketing Communications?

Integrated marketing communications is the process of conveying a
unified message across a variety of channels to drive higher customer
engagement for a company’s products and solutions.

According to Philip Kotler, the integrated marketing communications

process involves creating, communicating, and delivering value for
consumers such that the ‘whole is more than the sum of parts’.

It maximizes the individual and cumulative effort of all communication

channels, including mass media, advertising, digital media, social
media, events, public relations, and mobiles for engaging with
customers.

Businesses spend millions or even billions of dollars on marketing

efforts. Marketing budgets for B2B companies averages around 6.4%
of revenues. For a company the size of GE, that amounts to about $2
billion.

However, CMOs face a different reality today than they did several
years back thanks to a surge in digital communication techniques.
The digital era has spawned a revolutionary method of communication
for B2B companies - that ranges from TV, print media (newspapers,
magazines, publications, brochures, case studies), digital media
(mobiles, tablets, websites, blogs, microsites, email, videos, podcasts,
webinars), social media (Facebook, LinkedIn, Instagram, Twitter,
Pinterest, WhatsApp) and so much more.

That is why companies need to have an integrated marketing

communications strategy that enables them to coordinate their
marketing messages for the most significant impact.

5 Reasons Why Integrated Marketing Communications

are Important
According to Kantar Media’s 2018 annual state of marketing study,
marketers are grappling to understand cross-channel behavior. 82% of
marketers said they had integrated marketing strategies, but their efforts
are not permeating through to consumers.

It shows why B2B marketers must understand how to use the

communication process to reach end-consumers by decluttering the
advertising process.
Let us now understand the importance of integrated marketing
communication for companies and the need for a combined strategy:

1. Customers are better informed

In today’s digital age, consumers know what they want, and seek
knowledge for it themselves. They do not rely on marketers to tell them
what they need, instead gather information through internet research,
social media posts, peer reviews, word of mouth, and other means.

On average, two-thirds of B2B purchases were significantly influenced

by digital media. They can even generate brand messages and relay
them to others. Marketers are challenged to find newer ways of reaching
their targeted audience.

2. Customer segments are becoming more fragmented

Consider this: a 30-second TV ad beamed in the 1960s simultaneously
on three major networks, i.e., ABC, CBS, and NBC would have reached
80% of American women.

Today, companies cannot reach the same level of audience even if they
advertise with 100 TV channels. As a result, marketers are required to
develop more focused marketing programs for narrower customer
segments and slender micro markets.

3. Marketing communication is cluttered and intrusive

The average city dweller is exposed to as many as 5,000 ads versus
about 2,000 ads 30 years ago. No matter where you are: at a Superbowl
game, a gas station, a pizza joint, a grocery store, driving on a highway,
watching your favorite TV series - you are bombarded with short-form
videos and ads.

Consumers feel that ads have become more intrusive than

before. Marketers need to be creative in leveraging technology to
engage with customers in a non-intrusive manner.

4. The emergence of newer marketing channels

Marketers at companies traditionally known for spending a chunk of
their advertising budgets on conventional advertising channels are
beginning to move away towards digital media. Unilever spends about
25% of its $8 billion budget on digital.
According to The CMO Survey, a quarter of B2B marketers spend 61-
80% of their marketing budgets on digital. A HubSpot survey pegged
this number at 47%, which is only expected to increase. Marketers at
Salesforce spent nearly half of their budgets (46%) on digital.

Old media mainstays have ceded ground to newer forms of marketing,

and hence, marketers must reach their audiences through a combination
of new age technologies, including mobile, digital, online, and social
media.

5. More marketing channels, more chaos

As different forms of new-age communication channels open, it
presents a unique problem - marketers are struggling to integrate their
messages across a broad range of communication channels.

For example, a TV ad (mass media) may convey a specific message, but

it may not resonate when transmitted through websites, landing pages,
YouTube videos, social media posts. What marketers often fail to
understand is that consumers do not differentiate between the source of
these messages. What matters to them is the utility value that a
brand/product/solution provides.

Far too often, marketers are focused on short-term preferences of

customers. Instead, a well-planned integrated marketing
communications strategy can result in continued engagement, and build
customer relationships based on consistent brand experience.

Integrated marketing communications are essential because it enables a

compelling message, using specific marketing tools that are carefully
synchronized.
Benefits of Integrated Marketing Communications
Integrated Marketing Communications has tangible benefits to B2B
companies. It is a fusion of a company’s promotion tools to
communicate value to customers and build customer relationships
persuasively. Here are the benefits of an integrated marketing
communications strategy:

1. Helps build good customer relationships

Companies want to develop and nurture relationships with their
customers - it cannot be achieved simply by creating a great product,
pricing it appealingly, and making it accessible to your target audience.

An Integrated marketing communications strategy can enable your

brand to convey the intended message across marketing channels and
mediums, that resonate with your targeted audience. This way,
marketers are not left wondering how their audience is perceiving it.

Marketers often gather a lot of fans but fail to interact with them.
However, American fast food restaurant chain Chick-fil-A, lets their
fans know when they open a new store through social media
announcements. They even feature employees from their store to add a
human touch to their messages.

2. Enables personalized communications

Have you ever wondered why you get so many emails about the latest
fashions and offers from clothing retailers? It is only a select few who
have indicated a desired to be informed get these messages. Statistics
suggest that when customers receive a birthday message tend to think
positively about the company, that also results in increased brand
loyalty.
One way of building increased personalization is through loyalty
programs. When it comes to loyalty programs, nobody does it better
than Starbucks. Their reward program features a mobile app that
rewards loyal customers with limited time, bonus offers, and extends it
even for merchandise purchased outside their stores. Starbucks has
reported a 14% rise in members to 16.3 million people in Q1, 2019.

The Point Defiance Zoo & Aquarium in Tacoma,

Washington increased their customer count by 300% by identifying
postcodes of their most-frequent customers and engaging others within
those locations with discount campaigns.

3. TARGETING SEGMENTED GROUPS

In an era where consumer groups are becoming increasingly segmented,
integrated marketing communications enables B2B companies to target
consumer segments based on their preferences, needs, attitudes, and
interests. Segments can be based on:
 Demographics - i.e., Age, gender, income, ethnicity. Men watch
more sports programs than women. American
women influence 83% of consumer spending, amounting to $7
trillion - marketers can use these factors to design marketing
communication targeted at women.

 Psychographics - i.e., responses that reveal a person’s interests,

thoughts, activities, i.e., believers, achievers, thinkers, innovators,
experiencers, strivers, and more). Atlantic City-based casino
Revel, designed an integrated marketing communication for
‘leisure and lifestyle’ consumers via TV, radio, print and digital
ads around the ‘Elevationist’ theme, that suggested you
experience a new high like never before.

 Generations - i.e., Millennials, baby boomers, Gen X, Seniors,

social class, orientation. Millennials attract maximum advertising
 dollars who continuously look for bargains and promotions, yet
seek high-quality products and experiences.

 Geographic area - Consumers in a specific geography will

receive marketing communication based on an event happening
in their city/town. For example, during the 2016 Summer
Olympics in Rio, P&G launched the ‘Thank You, Mom’ ad
campaign in honor of the courage and fortitude shown by mothers
through their child’s life.

4. Improved brand perception

A successful integrated marketing communications program that can
position a product appropriately in the consumer’s mind so that she can
compare it with other competitors. A unified message helps in creating
a healthy and positive brand image.

Industrial equipment manufacturer Scott Equipment was spread across

25 different locations in the US with each region creating different
brand images for their products. Scott Equipment hired Peter Mayer
advertising agency to integrate their marketing under a tagline named
‘Heavy-Duty Commitment’ that let consumers know of the support they
can expect.

Such well-targeted communication programs can provide positive

assurance to consumers about what to expect irrespective of where it is
purchased.

5. Increased Customer Retention

Integrated marketing communications enable higher levels of customer
acquisition, retention, and loyalty. Moreover, maintaining repeat
customers is less expensive than replacing customers who move away.
While marketers can use integrated marketing communication
programs to sell products, and acquire new customers, increasing
retention and loyalty should be their primary focus.

When a customer logs on to a website and is greeted with a message

saying “Welcome back, Jennie!”, that means Jennie has been on the
website in the past, and the website content can be customized to display
information on products/solutions that Jennie wants to purchase.

6. Measure the Impact

An integrated marketing approach connects brands with each customer
through various channels, collectively or sequentially.

It produces meaningful insights across multiple channels that enable

marketers to measure the impact of every component of a campaign. It
lets brand managers identify the channels that are working and the
components that resonate with the target audience.

Integrated marketing communications have exponential benefits to

businesses, provided there is sufficient emphasis on customer
engagement through consistent and clear messages.

Disadvantages of integrated marketing communications

When a tree falls in a forest, how many people notice it? Unfortunately,
too many integrated marketing communications programs have ‘fallen’
due to various reasons without causing as much as a rustle.

In a world where viewer attention spans are getting shorter, a user

seeing half a screen for two seconds counts as a view. As Keith
Weed, CMO of Unilever, whose prime responsibility is to derive a
higher ROI for Unilever’s ~$8 billion marketing budget, says “Can you
imagine seeing half of a TV screen for two seconds and we’d say that
is a TV ad view? I certainly wouldn’t consider it as such.”

Integrated marketing communication is not easy because it needs

different marketing channels to act coherently in a synchronized
manner. Let us examine its disadvantages and why it could go wrong
if not carefully

Importance of Marketing as a business function in the

economy?
Marketing has acquired an important place for the economic
development of the whole country. It has also become a necessity for
attaining the object of social welfare.

As a result of it, marketing is considered to be the most important

activity in a business enterprise while at the early stage of development
it was considered to be the last activity. For convenience, the
importance of marketing may be explained as under:

i) Delivery of standard of living to the society:

A society is a mixture of diverse people with diverse tastes and
preferences. Modern marketing always aims for customer satisfaction.
So, main liability of marketing is to produce goods and services for the
society according to their needs and tastes at reasonable price.

Marketing discovers needs and wants of society, produces the goods

and services according to these needs creates demand for these goods
and services. They go ahead and promote the goods making people
aware about them and creating a demand for the goods, encouraging
customers to use them. Thus, it improves the standard of living of the
society.

ii) Decrease in distribution cost:

Second important liability of marketing is control the cost of
distribution. Through effective marketing the companies can reduce
their distribution costs to a great extent. Decrease in cost of distribution
directly affects the prices of products because the cost of distribution is
an important part of the total price of the product.

iii) Increasing employment opportunities:

Marketing comprises of advertising, sales, distribution, branding and
many more activities. So the development of marketing automatically
gives rise to a need for people to work in several areas of marketing.
Thus the employment opportunities are born. Also successful operation
marketing activities requires the services of different enterprises and
organisation such as wholesalers, retailers, transportation, storage,
finance, insurance and advertising. These services provide employment
to a number of people.

iv) Protection against business slump:

Business slump cause unemployment, slackness in the success of
business and great loss to economy. Marketing helps in protecting
society against all these problems.

v) Increase in national income:

Successful operation of marketing activities creates, maintains and
increases the demand for goods and services in society. To meet this
increased demand the companies need to increase the level of
production in turn raising their income. This increase, in turn, increases
the national income. Further effective marketing leads to exports adding
to the national income. This is beneficial to the whole society.

Define market? Discuss the types and characteristics of market?

In layman’s language, a Market is a place where the exchange of goods

takes place. In other words, a place where the purchase and sale of
goods take place is a market. The market is the nervous system of
modern economic life where producers and consumers carry out the sale
and purchase transactions. The market has a different and wider
meaning in Economics, as it does not refer to a specific place.
In Economics, a Market is a region where the buyers and sellers don’t have
to assemble at a specific place for the sale and purchase of goods.
Instead, they have to be in contact with each other through any
communication means, such as the internet, letter, mail, telephone, etc.
Market refers to the whole region where buyers and sellers of a
commodity are in contact with each other to affect the purchase and sale
of the commodity.

Types of Markets
1. Physical Markets - Physical market is a set up where buyers
can physically meet the sellers and purchase the desired
merchandise from them in exchange of money. Shopping
malls, department stores, retail stores are examples of physical
markets.
 2. Non Physical Markets/Virtual markets - In such markets,
buyers purchase goods and services through internet. In such
a market the buyers and sellers do not meet or interact
physically, instead the transaction is done through internet.
Examples - Rediff shopping, eBay etc.
3. Auction Market - In an auction market the seller sells his
goods to one who is the highest bidder.
4. Market for Intermediate Goods - Such markets sell raw
materials (goods) required for the final production of other
goods.
5. Black Market - A black market is a setup where illegal goods
like drugs and weapons are sold.
6. Knowledge Market - Knowledge market is a set up which
deals in the exchange of information and knowledge based
products.
7. Financial Market - Market dealing with the exchange of
liquid assets (money) is called a financial market.

Essential or Characteristics of a Market

1. Area: In economics, a market is not related to a specific place,

instead, it spreads over an area that becomes the point of contact
between the producers/sellers and consumers/buyers. With the
advancement of technology and modern means of communication, the
market area of a product has become wide.
2. Commodity: In economics, a market is not related to a specific place
but to a specific product. It means that a market can exist if there is one
commodity that will be purchased and sold among the
buyers/consumers and sellers/producers.
3. Buyers and Sellers: Another characteristic of a market is the
presence of buyers and sellers. The buyers and sellers must contact each
other in the market. However, it does not mean that they should meet
physically, the contact can be through modern means of
communication, like the internet, mail, telephone, etc.
4. Competition: For a market to exist, it is necessary that there is free
competition amongst the buyers and sellers. The absence of
competition in the market results in the charging of different prices for
the homogeneous commodity by the sellers.
Market Structure
The number and types of firms operating in the industry and the nature
and degree of competition in the market for the goods and services is
known as Market Structure. To study and analyze the nature of
different forms of market and issues faced by them while buying and
selling goods and services, economists have classified the market in
different ways.

Basis for Classification of the Market Structure

The factors determining the market structure are as follows:

1. Number of Buyers and Sellers

The volume/number of buyers and sellers in the market of a commodity

exercises a great influence on the price of a commodity. If there are a
large number of buyers and sellers in the market, then a single buyer or
seller cannot influence the price of a commodity. However, if there is
one seller of a commodity, such as Railways, then the seller has great
control over its price.

2. Nature of the Commodity

The nature of the commodity has a great impact on the price of the
commodity. If a commodity is homogeneous in nature (identical goods
such as pen, paper, etc.), then it is sold at a uniform price in the market.
If a commodity is heterogeneous in nature (non-identical, totally
different goods, such as different toothpaste brands, etc.), then it may
be sold at different prices. However, commodities with no close
substitutes, such as Railways can charge a higher price from the
buyers.
3. Freedom of Movement of Firms

Freedom in entry and exit of firms results in price stability in the

market. However, restrictions on the entry of new firms or exit of the
existing ones can lead to the firms influencing the price of goods and
services, as they have no fear of competition from other existing or new
firms.
4. Knowledge of Market Conditions

If the buyers and sellers are aware of the market conditions and have
full knowledge about them, then the uniform price of goods and
services prevails in the market. Whereas, if the buyers and sellers are
unaware of the market conditions, then sellers are in a position to
charge their customers different prices.
5. Mobility of Goods and Factors of Production
Free movement of factors of production from one place to another
results in a uniform price in the market. However, if the movement of
factors of production is not free, then the prices may differ from each
other.
Forms of Market Structure

The different forms of market structure are Perfect Competition and

Imperfect Competition (Monopoly, Monopolistic Competition, and
Oligopoly).
1.Perfect Competition

A market situation where a large number of buyers and sellers deal in

a homogeneous product at a fixed price set by the market is known
as Perfect Competition. Homogeneous goods are goods of similar
shape, size, quality, etc. In other words, in a perfect competitive market,
the sellers sell homogeneous products at a fixed price determined by
the industry, not by a single firm. In the real world, the situation of
perfect competition does not exist; however, the closest example of a
perfect competition market is agricultural goods sold by the farmers.
Goods like wheat, sugarcane, etc., are homogeneous in nature and their
price is influenced by the market.

2. Monopoly
Monopoly is a completely opposite form of market and is derived from
two Greek words, Monos (meaning single) and Polus (Meaning seller).
A market situation where there is only one seller in the market selling
a product with no close substitutes is known as Monopoly. For
example, Indian Railways. In a monopoly market, there are various
restrictions on the entry of new firms and exit of the existing firms.
Also, there are chances of Price Discrimination in a Monopoly market.
3. Monopolistic Competition
A Monopolistic Competition Market consists of the features of both
Perfect Competition and a Monopoly Market. A market situation in
which there is a large number of firms selling closely related products
that can be differentiated is known as Monopolistic Competition. The
products of monopolistic competition include toothpaste, shampoo,
soap, etc. For example, the market for soap enjoys full competition
from different brands and has freedom of entry showing the features of
a perfect competition market. However, every soap has its own
different feature, which allows the firms to charge a different price for
them. It shows the features of a Monopoly Market.
4. Oligopoly
A market situation where the number of big sellers of a commodity is
less and the number of buyers is more is known as Oligopoly
Market. As the number of sellers in this market is less, the price and
output decision of one seller impacts the price and output decision of
other sellers in the market. In other words, the interdependence among
the sellers of a commodity is high. For example, luxury car producers
like BMW, Audi, Ford, etc., come under Oligopoly Market, as the
number of sellers of luxury cars is less and its buyers are more.

What is the marketing mix (4 P's of marketing)?

The marketing mix, also known as the four P's of marketing, refers to
the four key elements of a marketing strategy: product, price, place and
promotion. By paying attention to the following four components of
the marketing mix, a business can maximize its chances of a product
being recognized and bought by customers:

 Product. The item or service being sold must satisfy a

consumer's need or desire.
  Price. An item should be sold at the right price for consumer
expectations, neither too low nor too high.
 Promotion. The public needs to be informed about the
product and its features to understand how it fills their needs
or desires.
 Place. The location where the product can be purchased is
important for optimizing sales.

What Is Brand Equity?

Brand equity refers to a value premium that a company generates from

a product with a recognizable name when compared to a generic
equivalent. Companies can create brand equity for their products by
making them memorable, easily recognizable, and superior in quality
and reliability. Mass marketing campaigns also help to create brand
equity.
When a company has positive brand equity, customers willingly pay a
high price for its products, even though they could get the same thing
from a competitor for less. Customers, in effect, pay a price premium
to do business with a firm they know and admire. Because the
company with brand equity does not incur a higher expense than its
competitors to produce the product and bring it to market, the
difference in price goes to their margin. The firm's brand equity
enables it to make a bigger profit on each sale.

Importance Of Packaging

Often considered as an essential marketing subset, packaging forms the

core distribution, storage, and sales tool that can be a part of the product
itself or an external container made of varied materials.
Packaging is an essential element both for the seller and the customer.
While the seller use it as a tool to distribute, store, and promote;
the customer uses it as an important identification and usage tool.

Importance Of Packaging For The Seller

 Distribution: Good packaging makes it possible for the

seller to transport the product from the manufacturing unit
to the final selling point and then to the customer. The seller
uses different packaging for the same – transport packaging
to transport the products and consumer packaging to aid the
consumer in consuming the product.
 Storage: Warehousing comes with its own risks of product
spoilage, spillage, and mishandling. Proper packaging helps
the seller store and assort the products better.
 Promotion: Packaging forms a vital marketing element that
the brand uses to differentiate the product using attractive,
colourful, and visually appealing packages and inform the
buyer about the product’s performance, features, and
benefits.
 Safety: Good packaging aids in product safety before it
reaches the final consumer. For example, a Tetra Pak
prevents the milk from getting spoilt before its expiry date.
Importance Of Packaging For The Buyer

 Identification: Packaging and labelling help the customers

identify the product and differentiate it from other products
in the market.
 Usage: Often, packaging, like that of a toothpaste, that
forms a part of the product aids in its usage and
consumption.
 Safety: It also protects the consumer from the dangers that
the product comes with. For example, an acid bottle protects
the user from getting acid burns.
Functions Of Packaging

Packaging plays a crucial role from the time a product is developed to

the time a product is fully consumed. These functions of packaging
include:

1. Contains the product: Most products need to be contained

either during transportation, storage, or consumption.
Packaging makes sure the product is contained as and when
required.
2. Protects the product: Packaging protects the product and
its quality, features, utility, etc. from being damaged or
contaminated during transportation, storage, and
consumption.
3. Aids product handling and usage: Proper packaging aids
product handling and makes it easy to transport, ship, and
even use the product.
4. Differentiates the product and makes it stand
out: Packaging makes it easier for the customer to identify
and differentiate it from other products. Moreover,
attractive packages have a property to stand out and attract
customers towards it.
5. Forms a part of product marketing strategy: An
attractive and/or informative package makes the product
stand out and have a promotional appeal. Packaging also
acts as the final touchpoint that helps in product promotion
and sale.
6. Provides customer convenience: Packaging is also a
convenience tool that makes it convenient for the customer
to carry, transport, and use the product.
7. Acts as a communication medium: Packaging along with
labelling helps communicate the brand identity, brand
message, and product and company information to the
customer.
8. Adds to the aesthetic value: Packaging can make a simple
product look attractive or a unique product look ordinary.
It’s an important aesthetic touchpoint that can make or
break a sale.
Types Of Packaging

Usually, packaging can be categorised into three types depending upon

its usage and purpose. These types are:

Primary Packaging

Primary packaging, also referred to as consumer packaging, is in direct

contact with the product and is intended for the customer to identify,
gain product knowledge, and to aid product consumption.

It’s the base packaging that emphasises both utility and appearance.

It is the primary layer like the plastic pouch, cardboard box, etc.
containing the finished product, that protects and preserves the finished
product from contamination and tampering, while including aesthetic
elements that make the product stand out.

Besides aiding identification, differentiation, and consumption,

primary packaging also acts as a promotional tool to attract more
customers at the point of sale by making the product look more
appealing.

Some examples of primary packaging are:

 Laminated pouches for dry fruits

 Plastic containers for fruits
 Tin cans for soft drinks
 Laminated tubes for beauty products
 Composite cans for chips
Often, removing the primary packaging of a product affects the
product’s quality or attribute.
Secondary Packaging

Secondary packaging forms the second packaging layer that the

customers don’t usually see. Its main use is to group and hold together
individual units of the product to deliver large quantities of that product
to the point of sale.

It collates smaller product units into a single pack and aids in inventory
management (grouping and identification) before the product is
showcased to the customer.

Some examples of secondary packaging are:

 Plastic ring that holds soda cans together, and

 Cardboard box containing multiple individual boxes of
cereal, etc.
Removing secondary packaging doesn’t affect the product’s quality or
attributes.

Tertiary Packaging

Tertiary packaging, also referred to as bulk or transit packaging, is used

to group a large quantity of a particular product to transport it from
point A to B.

The main objective of this packaging is to make it easier to transport

heavy loads or large quantities of a product easily and securely, while
facilitating easy storage and handling.

Some examples of tertiary packaging are:

 Wooden pallets used in freight shipping

 A stretch-wrapped pallet containing a large quantity of
secondary packaged goods.
What is a distribution channel?

A distribution channel is the network of individuals and organizations

involved in getting a product or service from the producer to the
customer. Distribution channels are also known as marketing
channels or marketing distribution channels.

Types of distribution channels

There are three types of distribution channels: direct, indirect and
hybrid.

1. Direct. With the direct channel, the company sells directly to

the customer. For example, a brewery that brews its own beer
and sells it to customers at its own brick-and-mortar location
employs a direct channel of distribution. The seller delivers the
product or service directly to customers. The vendor might
also maintain its own sales force or sell its products or services
through an e-commerce The direct channel approach requires
vendors to take on the expense of hiring and training a sales
team or building and hosting an e-commerce operation.
2. Indirect.
Indirect channels use multiple distribution partners or
intermediaries to distribute goods and services from the seller
to customers. Indirect channels can be configured in the
following ways:
 With the single-tier distribution model, vendors develop direct
relationships with channel partners that sell to the customer.
  In the two-tier distribution model, the vendor sells to distributors that
provide products to channel partners, which, in turn, package
products for the end customer. Two-tier distribution helps
smaller channel partners that would have difficulty
establishing direct sales relationships with large vendors.
3. Hybrid.
Hybrid channels combine the characteristics of direct and
indirect channels. The seller uses both direct and indirect
methods. For example, a manufacturer might sell an item on
its e-commerce website, but then an intermediary delivers the
physical product to the customer. The customer still has a
direct interaction with the seller, but an intermediary is also
involved.

Two-tier
distribution involves multiple intermediaries between producer and
buyer.
Examples of distribution channel intermediaries
Intermediaries are used in indirect channels to distribute, sell and
promote goods and services. Intermediaries may more commonly be
referred to as middlemen. Examples of intermediaries include the
following:

 Wholesalers are intermediaries between manufacturers and

retailers.
 Agents represent a person or entity and serve as an
intermediary between buyers and sellers.
 Brokers are similar to agents but represent a person or entity
on a limited, per-transaction basis.
 Catalogs are collections of products gathered in a publication
and distributed at regular intervals.
 Consultants are individuals who connect distributors with
intermediaries lower on the supply chain and give advice on how
to distribute product effectively.
 Distributors are in direct contact with the manufacturer but sell
to end users.
 Retailers either buy from the manufacturer or another
intermediary and distribute to consumers through shops,
grocery stores or websites.
 Independent software vendors are vendors that sell their
software using a marketplace.
 Managed service providers (MSPs) offer managed software
services.
 Online marketplaces are e-commerce sites that connect buyers
and sellers.
 Original equipment manufacturers, or OEMs, are companies that
sell a product and markets itself as the company that originally
manufactured the product.
 Value-added resellers (VARs) are resellers that add value to a
product or service before reselling it.
Each type of intermediary represents a channel with its own distinct
characteristics. VARs, for example, are often local companies that sell
horizontal products, such as office productivity apps or vertical IT
products, such as healthcare services to businesses in their geographic
region. VARs provide value beyond the original order fulfillment.
They're distinct from the manufacturer and customer, and help the
product get to the customer with added value.

VARs package and customize third-party products and resell them with
additional offerings bundled in.

Systems integrators might be large, national companies that work on

highly complex, multivendor IT projects. Consultants might not resell
products but rather influence sales through product recommendations
to customers.

A vendor develops a marketing strategy called a channel strategy, also

known as a distribution channel strategy, to determine what types of
intermediaries to target and how to optimize partner relationships to increase
sales and improve distribution.

Intensive vs. selective vs. exclusive distribution

There are three main levels of distribution that describe which type of
intermediary sells the company's product and how involved the intermediaries
are.

Distributor relationships are an important part of managing the

distribution channel.

This applies to the indirect distribution method, because it involves

intermediaries. Indirect product distribution strategies fall into three
categories: intensive, selective and exclusive.

1. Intensive distribution.
 This involves a large number of intermediaries. The vendor
tries to place its product in as many sales outlets as possible.
This method is used with products that have a high
consumption frequency and a low cost of production. Examples
include common grocery items, such as eggs, bread and potato
chips; bathroom products, such as toilet paper; and tobacco
products, including cigarettes.
2. Selective distribution. This
involves a smaller number of
intermediaries, using criteria set by the vendor such as
geographic region, service and support capabilities. The
reputation of the intermediaries is important in this method
because vendors need to have a stronger relationship with
retailers in order to be selective. For example, a clothing
manufacturer might select certain small shops to distribute
clothes versus using a large chain.
3. Exclusive distribution. This
involves only a few intermediaries that
agree to exclusively sell the vendor's products. Deals are
exclusive and limited to just those intermediaries.
Distribution channel levels explained
Distribution channel levels describe how close an intermediary is to the
producer or vendor of a product. With each intermediary added, another
level is added between the producer and the customer. If a clothing
producer gives products to a retailer to sell to customers, there's one
level between the producer and customer. If the producer first gives the
clothing to a wholesaler to then give to a retailer and then the customer,
there are two levels between producer and consumer. Adding another
level might involve placing an agent between producer and wholesaler,
to help find the wholesaler.
With each level, the distribution channel grows more complex.

The alcohol industry is a good example of a distribution channel with

multiple levels. There are laws that require wineries to first sell their
products to a wholesaler before selling to a retailer. Direct-to-
consumer models like e-commerce are examples of low-level, short
distribution channels. For example, customers can buy products
directly from producers on Amazon.

Partner enablement
As vendors grow the size and scope of their distribution network,
dedicated resources are often needed to ensure the success of the partner
program. Reporting to the heads of sales or marketing, partner
enablement managers are focused on the success of the partner
program.

Partner enablement includes the creation of co-branded sales and

marketing material and the training of partners' sales and marketing
staff. The partner enablement manager facilitates communication and
collaboration between the partners and assorted stakeholders and
executives on the vendor side. The partner enablement manager also
creates a partner certification program, which defines tiers of
certification, along with the requirements to meet each tier.

The importance of distribution channels

The various channels of distribution play a critical role in a vendor's go-
to-market strategy. If successfully executed, any distribution channel model
-- whether focused entirely on one mode, such as direct sales, or
embracing multiple outlets, such as multichannel distribution -- can
open or expand markets, exceed sales goals and grow a vendor's bottom
line.

Beyond boosting revenue, distribution channels can also broaden the

portfolio of products and services available to customers. VAR, SI and
MSP channel partners, for instance, often provide consulting,
technology implementation services and post-sales support. They
might also incorporate a vendor's product into an integrated IT product.

The final customer is focused on whether a product or service meets its

needs. The customer is often unaware or unconcerned about the
intricacies of distribution channels.

What is brand loyalty?

Brand loyalty is when customers continue to purchase from the same

brand over and over again, despite competitors offering similar
products or services. Not only do customers continue engaging and
purchasing from the same brand, but they also associate positive
feelings toward that brand. Brand loyalty has a lot to do with how
customers perceive your brand, its actions, and its values. And it’s an
important way to help retain customer loyalty and increase repurchase
rates.

What Is Market Segmentation?

Market segmentation is a marketing term that refers to aggregating
prospective buyers into groups or segments with common needs and
who respond similarly to a marketing action. Market segmentation
enables companies to target different categories of consumers who
perceive the full value of certain products and services differently
from one another.

Understanding Market Segmentation

Companies can generally use three criteria to identify different market
segments:

1. Homogeneity, or common needs within a segment

2. Distinction, or being unique from other groups
3. Reaction, or a similar response to the market

For example, an athletic footwear company might have market

segments for basketball players and long-distance runners. As distinct
groups, basketball players and long-distance runners respond to very
different advertisements. Understanding these different market
segments enables the athletic footwear company to market its branding
appropriately.

4. Market segmentation is an extension of market research that

seeks to identify targeted groups of consumers to tailor products
and branding in a way that is attractive to the group. The
objective of market segmentation is to minimize risk by
determining which products have the best chances of gaining a
share of a target market and determining the best way to deliver
the products to the market. This allows the company to increase
its overall efficiency by focusing limited resources on efforts that
produce the best return on investment (ROI).

Optimum Promotion Mix

Promotion Mix is the combination of various tools employed by the
company in the advancement of the product in the market, raising its
market share and also with other objectives like educating customer
about the availability of superior product in the market compared to
existing known brands .

Company needs to use various tools of promotion like advertising,

sales promotion, personal selling, customer relationship . But the real
question what should be its proportion in the total promotional
program. Depending upon the market conditions, the feedback
received by market analysis, the importance, utility and applicability of
each tool would be decided by the management of the company.

The term optimum promotion mix is indicating the level of results

compared to the expectations from the adoption of particular promotion
mix. It implies maximum return for minimum inputs in the form of
expenditure on various promotional tools employed by the
company. Naturally while thinking of optimum promotion mix the
allocation of financial budget and its bifurcation or division over the
use of various tools of promotion assumes importance. Based on
practical requirement of the market the resources would be allocated
for various promotion tools.

The optimum results expected may be in the form of attainment of

particular sales figure within a stipulated time period. It can also be
widening the market range and share of the particular product in certain
market. It also implies conveying the message or reaching to the
maximum number of customers – so as to pursue them in their buying
decision.

Product nature– depending upon the type of product the use of tool
changes. For Highly technical products or industrial products- more
importance for personal selling would be appropriate. While in respect
goods meant for daily consumption wide publicity would be more
important.
Nature of Market– It is another important aspect deciding the tool and
its use. For purely local or rural market the advertisement and display
within local market or even during weekly market fairs in
villages would be sufficient. While for National Market spreading of
message addressed to all segments of the market spread over the
country through national medium would become necessity .
Nature of Customers– Depending upon the nature of customers based
on their educational and financial background, their buying habits, their
preferences for branded and quality products etc. ensuring the presence
of the products in such places which are visited by them quite
frequently needs becomes vital. For such customers opening a posh
sales center in the largest market would be appropriate. Or using the
Major departmental stores within the chain of distribution would be
more useful.
Budget Allocation – Provision of Total Sales Budget and the period
involved also attains more importance. Based on the previous
experiences about the suitability, utility and guarantee of results actual
allocation of funds for various tools may be done. It is not enough just
to allocate the funds but its utility needs to be judged at various
intervals. If payment for particular promotion tool is not generating
expected result it would be in the interest of the business to stop further
use of that method. Reallocation of funds based on real results becomes
prime requirement in such situation. So Budget allocation must be
flexible to accommodate, alter the division over various tools of
promotion.

Brand Equity
Brand equity is a multi-dimensional and complex concept, but its
understanding remains central to a brand fulfilling its competitive
potential. Its complexity is demonstrated by a wide range of perceived
interpretations and attempted definitions by both academics and
professionals.

A popular definition of brand equity is that of renowned marketing

theorist and Professor David Aacker, who defines brand equity in his
book ‘Managing Brand Equity’ as:

“A set of assets or liabilities in the form of brand visibility, brand

associations and customer loyalty that add or subtract from the value of
a current or potential product or service driven by the brand.” (Aacker,
1991)
Put simply, brand equity represents the value of a brand. It is the
simple difference between the value of a branded product, and the value
of that product without that brand name attached to it (Rosenbaum-
Elliott, 2015).

What is Consumer Behavior?

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

Factors effect consumer behaviour

1. Psychological Factors
2. Social Factors
3. Cultural Factors
4. Personal Factors
5. Economic Factors
Psychological Factors
Human psychology influences an individual’s thinking and hence also
decisions regarding purchases. Some important psychological factors
affecting consumer behaviour are:
Motivation
The motivation to achieve or possess something is a strong emotion
that influences a consumer's buying behaviour. An individual makes
purchases mainly to fulfil his needs. Needs can be of different types-
basic needs, security, social needs, need to enhance the status, and self-
actualisation needs. Since basic and security needs are most important,
the consumer is motivated to fulfil these needs first.
Perception
A consumer’s buying is also influenced by perception. An
advertisement in the newspaper or roadside hoardings, a review,
or feedback all form an image in the consumer’s mind about a particular
product. This perception influences the consumer’s buying decision.
Learning
Learning is of two types- conditional or cognitive. In either case, the
consumer uses his knowledge and skill to purchase the product.
Attitudes and Credence
Consumerbuying is also influenced by preformed notions or attitudes and
acceptance. The preformed notion regarding the quality of a product
draws the consumer towards particular brands. Faith in the quality and
performance of a product based on earlier experience of using it pulls
the consumer towards the same product. Understanding this behaviour
helps marketers to produce and market their products accordingly.
Social Factors
Consumer buying behaviour is also affected by the people amongst
whom they live and move around. The social factors involved are:
Family
The family has a major influence on the buying behaviour of a
consumer. A person’s likes and preferences are formed since
childhood, so they buy certain products through habit and are guided
by the belief that they are good even when the consumer has grown up.
Also read: What Is Business Development - Complete Guide on Business Development
Strategy for Successful Business

Reference Groups
People with whom the consumer associates influence their buying
choices. Usually, all members of such groups have common product
choices, shopping outlets, and similar buying behaviour.
Status
The status of an individual affects his spending. A person who is in a
high post and moves around an elite posh circle will spend lavishly as
they have to maintain status. Individuals with a lesser income will have
a different buying pattern since their buying capacity differs from the
elite group.
Cultural Factor
People belonging to particular communities maintain certain ideologies
and values. Their social class and culture highly influence their buying
behaviour.
Personal Factors
Personal factors differ from person to person, so there is no similarity
in consumer behaviour. Personal factors include −
Age
Age plays a vital role in deciding the choices of individuals. There will
be a difference between the purchases of school-going teenagers and
college-going adults. Young couples spend on household items and
luxury goods, whereas middle-aged people have a subdued choice.
Income
The income level also decides an individual's buying capacity and
behaviour. Consumers belonging to the higher income bracket have
higher disposable income and splurge on indulgences besides the usual
purchases. Individuals from the middle-income and low-income groups
use most of their income to provide basic needs like groceries, clothes,
and education to the family.
Occupation
Individuals belonging to different occupations show different buying
behaviour. A person from the corporate sector will spend on formal
clothing while a creative designer or writer will go for casual wear.
Lifestyle
Lifestyle is the way an individual lives in society. This, too, shapes their
buying behaviour. A consumer indulging in a healthy lifestyle will shop
for healthy foods and different outfits. Individuals who have to travel
alone will invest in good, sturdy, well-fitting attire and so on.
Economic Factors
The economy of a country somehow affects the buying habits of a
consumer. A nation with a strong economy results in higher purchasing
capacity for the consumer and thus increased money supply in the
market. A nation with a weak economy has a weak market, consumers
with low purchasing power and those plagued with unemployment
have a bad impact on it.

Some economic factors influencing consumer behaviour are as

follows:

Personal Income
After fulfilling the basic needs, a consumer with higher disposable
income spends freely on other items and things of value and interest.
With the decrease in disposable income, such spending is reduced.

Family Income
Family Income means the total income of all the earning members of the
family. Several earning members result in higher income, and this
increased income is substantial to fulfil basic needs and luxuries. So
higher family income results in the shoppers buying freely and more.

Consumer Credit
Easy credit for purchasing goods results in increased spending.
Availing credit through credit cards, bank loans, hire purchases, easy
instalments, etc., results in buying luxury and comfort items.

Liquid Assets
Consumers use liquid assets to spend on comfort and luxuries. Liquid
assets like bank savings, securities, cash in hand, and others provide the
consumer with confidence towards spending on luxury items.

Savings
A consumer’s decision to save a larger part of his salary/ income
decreases their spending, but if the consumer wishes to save a smaller
amount, then most of his money will be spent on buying different
products.

What is a trademark?
A trademark can be any word, phrase, symbol, design, or a combination
of these things that identifies your goods or services. It’s how
customers recognize you in the marketplace and distinguish you from
your competitors.
The word “trademark” can refer to both trademarks and service marks.
A trademark is used for goods, while a service mark is used for
services.
A trademark:
 Identifies the source of your goods or services.
 Provides legal protection for your brand.
 Helps you guard against counterfeiting and fraud.
A common misconception is that having a trademark means you legally
own a particular word or phrase and can prevent others from using it.
However, you don’t have rights to the word or phrase in general, only
to how that word or phrase is used with your specific goods or services.
For example, let's say you use a logo as a trademark for your small
woodworking business to identify and distinguish your goods or
services from others in the woodworking field. This doesn't mean you
can stop others from using a similar logo for non-woodworking related
goods or services.

What Is the Product Life Cycle?

The product life cycle is the process a product goes through from when
it is first introduced into the market until it declines or is removed from
the market. The life cycle has four stages—introduction, growth,
maturity, and decline.

While some products may remain in a prolonged maturity state for

some time, all products eventually phase out of the market due to
several factors including saturation, increased competition, decreased
demand, and dropping sales.
Companies use PLC analysis (the process of examining their product's
life cycle) to create strategies to sustain their product's longevity or
change it to meet market demand or adapt with/to developing
technologies.

The 4 Stages of the Product Life Cycle

Once a product is developed, it typically goes through the four stages

of the product life cycle—from introduction through decline—before
eventually being retired from the market.

The four stages of the product life cycle are introduction, growth,
maturity, and decline.

1. Introduction

Once a product has been developed, it begins the introduction stage of

the PLC. In this stage, the product is released into the market for the
first time. The release of a product is often a high-stakes time in the
product's life cycle, although it does not necessarily make or break the
product's eventual success.
During the introduction stage, marketing and promotion are at a high,
and the company often invests quite a bit of effort and capital in
promoting the product and getting it into the hands of consumers. This
is perhaps best showcased in Apple's (AAPL) - Get Free
Report famous launch presentations, which highlight the new features
of their newly (or soon-to-be) released products.

It is in this stage that the company is first able to get a sense of how
consumers respond to the product, whether they like it, and how
successful it may be. However, it is also often a heavy-spending period
for the company with no guarantee that the product will pay for itself
through sales.

Costs are generally very high during this stage, and there is typically
little competition. The principal goals of the introduction stage are to
build demand for the product and get it into the hands of consumers,
hoping to later cash in on its growing popularity.

2. Growth

During the growth stage, consumers start taking to the product and
buying it. The product concept is proven as it becomes more popular,
and sales increase.

Other companies become aware of the product and its space in the
market as it begins to draw more attention and pull in more revenue. If
competition for the product is especially high, the company may still
heavily invest in advertising and promotion of the product to beat out
competitors. As a result of the product growing, the market itself tends
to expand. Products are often tweaked during the growth stage to
improve their functions and features.

As the market expands, more competition often drives prices down to

make the specific products competitive. However, sales usually
increase in volume and continue to generate revenue. Marketing in this
stage is aimed at increasing the product's market share.

3. Maturity

When a product reaches maturity, its sales tend to slow, signaling a

largely saturated market. At this point, sales may start to drop. Pricing
at this stage tends to get competitive, so profit margins shrink as prices
begin to fall due to the weight of outside pressures like increased
competition and lower demand. Marketing at this point is targeted
at fending off competition, and companies often develop new or altered
products to reach different market segments.

Given the highly saturated market, less-successful competitors are

often pushed out of competition during the maturity stage. This is
known as the "shake-out point."

In this stage, saturation is reached and sales volume is maxed out.

Companies often begin innovating to maintain or increase their market
share, changing or developing their product to satisfy new
demographics or keep up with developing technologies.

The maturity stage may last a long time or a short time depending on
the product. For some brands and products—like Coca-Cola (KO)
- Get Free Report—the maturity stage lasts a long time and is very
drawn out.

4. Decline

Although companies generally attempt to keep their product alive in

the maturity stage as long as possible, eventual decline is inevitable for
virtually every product.
In the decline stage, product sales drop significantly, and consumer
behavior changes, as there is less demand for the product. The
company's product loses more and more market share, and competition
tends to cause sales to deteriorate.

Marketing in the decline stage is often minimal or targeted at already-

loyal customers, and prices are reduced.

Eventually, the product is retired out of the market altogether unless it

is able to redesign itself to remain relevant or in-demand. For example,
products like typewriters, telegrams, and muskets are deep in their
decline stages (and in fact are almost or completely retired from the
market).