Marketing

Marketing is identifying and meeting human needs profitably. Marketing is an activity and
process of creating, communicating, delivering and exchanging offerings that have value for
customers. Marketing refers to any actions a company takes to attract an audience to the
company's product or services through high-quality messaging. Marketing aims to deliver
standalone value for prospects and consumers through content, with the long-term goal of
demonstrating product value, strengthening brand loyalty, and ultimately increasing sales.
Marketing Communication
The Marketing Communication refers to the means adopted by the companies to convey
messages about the products and the brands they sell, either directly or indirectly to the
customers with the intention to persuade them to purchase. In other words, the different
medium that company adopts to exchange the information about their goods and services to
the customers is termed as Marketing Communication.
Elements of Marketing Communication Mix
Advertising: It is an indirect, paid method used by the firms to inform the customers about their
goods and services via television, radio, print media, online websites etcAdvertising is one of
the most widely used methods of communication mix wherein the complete information about
the firm’s product and services can be communicated easily with the huge target audience
coverage.
Sales Promotion: The sales promotion includes the several short-term incentives to persuade
the customers to initiate the purchase of the goods and services. This promotion technique not
only helps in retaining the existing customers but also attract the new ones with the additional
benefits. Rebates, discounts, paybacks, Buy- one –get- one free scheme, coupons, etc. are some
of the sales promotion tools.
Events and Experiences: Several companies sponsor the events such as sports, entertainment,
nonprofit or community events with the intention to reinforce their brand in the minds of the
customers and create a long term association with them.
The name of the firm sponsoring the event can be seen on the playground boundaries, player’s
jerseys, trophies, awards in the entertainment shows, hoardings on stage, etc.
Public Relations and Publicity: The companies perform several social activities with a view
to creating their positive brand image in the market. The activities that companies are
undertaking such as, constructing the public conveniences, donating some portion of their
purchase to the child education, organizing the blood donation camps, planting trees, etc. are
some of the common moves of enhancing the Public Relations.
Direct Marketing: With the intent of technology, the companies make use of emails, fax,
mobile phones, to communicate directly with the prospective customers without involving any
third party in between.
Interactive Marketing: Interactive Marketing has recently gained popularity as a marketing
communication tool, wherein the customers can interact with the firms online and can get their
queries resolved online.
Amazon is one of the best examples of interactive marketing wherein the customers make their
choice and can see what they have chosen or ordered in the recent past. Also, Several websites
offer the platform to the customers wherein they ask questions and get the answers online such
as answer.com.
Word-of- Mouth Marketing: It is one of the most widely practiced method of communication
tool wherein customer share their experiences with their peers and friends about the goods and
services they bought recently.This method is very crucial for the firms because the image of
the brand depends on what customer feels about the brand and what message he convey to
others.
Personal Selling: This is the traditional method of marketing communication wherein the
salesmen approach the prospective customers directly and inform them about the goods and
services they are dealing in. It is considered as one of the most reliable modes of
communication because it is done directly either orally, i.e., face to face or in writing via emails
or text messages.

Advertising Types

ATL (Above-The-Line) Marketing refers to campaigns that are targeted at a broad audience.
It is focused on building brand awareness and leaving a good brand impression instead of
getting potential customers to buy from the brand. Since ATL Marketing aims to improve its
visibility, ROI is NOT an important parameter to measure its success. Examples of ATL
Marketing include: Nationwide television ads. Ads in print and online media, i.e., ads in
newspapers, magazines, websites, etc. Radio broadcasts, Outdoor advertising, which includes
billboards, flyers, banners, etc.
BTL (Below-The-Line) Marketing refers to campaigns that are targeted at potential buyers.
BTL Marketing strategies are aimed at increasing sales and conversions. They're crafted after
careful study of the user's persona. Since the main aim of BTL Marketing is to acquire
customers and make a sale, ROI is an important parameter in measuring its success. Examples
of BTL Marketing include: Direct Response Marketing: SMS blasts, email marketing, search
engine marketing, social media marketing, etc. Events: Competitions, exhibitions, trade shows,
and Sponsorships, Sales promotion, Telemarketing.
Through the Line marketing or TTL advertising involves the use of both ATL & BTL
marketing strategies. The recent consumer trend in the market requires the integration of both
ATL & BTL strategies for better results. Through the marketing involves marketers to create
marketing campaigns which include both ATL & BTL strategies. It refers to 360-degree
advertising where campaigns are developed with the vision of brand building as well as
conversions. Examples of Through the Line Promotion is Digital Marketing
Moment of Truth (MoT)
A moment of truth (MoT) is any interaction during which your customer can form an
impression of your business, brand, or product. In customer experience management, they are
essentially points during the customer journey when key events occur and your customers tend
to form opinions about you. Now, the impression that they form may be positive or negative.
Your aim needs to be to make sure that these moments of truth cause your customers and
prospects to have a positive impression of your business or product rather than a negative one.
The point of this is simple, if all your customer interactions have positive outcomes and leave
your customers feeling good about your brand or product, your business will be far more likely
to experience success and growth.
Four Discrete Moments of Truth
There are four moments of truth in service and customer experiences that have been recently
conceptualized and defined in service design. The first was developed by Google, the next two
by Proctor and Gamble and the final one by Brian Solis, the author of “What’s the Future of
Business: Changing the Way Businesses Create Experiences.”
The Zero Moment of Truth (Discovery): – Coined by Google, the very first moment of truth
is when a customer has an unmet need and is seeking a solution. They begin to search for
potential options and alternatives. This is the first possible moment of contact between a brand
or product and the customer. It’s when a problem arises in the customer’s mind and they get
online and go hunting for the perfect solution or to learn about possible solutions.
The First Moment of Truth (Exploration): Coined by Proctor & Gamble, the second step of
the experience is the one in which the customer actually interacts with you and/ or your product
or service. What is their first impression? Does the product speak to their needs?
First Moment of Truth occurs the first time a potential client comes into contact with your
products. It’s the impression that they form when they see the product for the first time and
begin learning about it. Proctor and Gamble say that this is the moment that marketers should
concentrate their efforts on to turn potential customers into actual customers.
The Second Moment of Truth (Consumption): Also coined by Proctor & Gamble, the third
step of the experience is after the customer has elected to purchase your product or service and
is now using it and experiencing it. This moment lasts as long as the customer is engaged
with the product. Second Moment of Truth is the ongoing relationship with a product. The
things your customers think, see, here, touch, smell, etc. about the product and the brand over
the lifetime of the relationship.
The Ultimate Moment of Truth (Shared Engagement): Coined by Solis, the final (ultimate)
moment of truth is when customers share their experience with others who are often
experiencing their own Zero Moments. This influence loop generates a powerful force of either
growth or destruction, depending on how positive or negative the customer’s experience has
been. Ultimate Moment of Truth is the stage when the user or customer begins to share their
experiences with others and thus creates many more zero moments of truth

Theories of Advertisement:
Hierarchy of effect model
The hierarchy of effects is a theory that discusses the impact of advertising on customers’
decision-making on purchasing certain products and brands. The theory covers a series of
stages that advertisers should follow, from gaining customers’ awareness to the final purchase
behavior.
The hierarchy of effects theory describes how advertising affects consumers’ behavior and
leads to the transition from not knowing a product or brand to liking it and finally making the
action to purchase. The theory was first raised by Robert J. Lavidge and Gary.
Stages of Hierarchy of Effects
1. Awareness
Gaining consumer awareness is the starting point of the entire process. For example, if a
consumer intends to purchase a smartphone, the marketing team of a phone brand must make
that potential consumer aware of the brand’s existence through its advertising. At the awareness
stage, the consumer notices the brand but with very limited knowledge about it.
2. Knowledge
After being aware of a brand, the consumer will start to evaluate whether the product under the
particular brand can meet his/her needs and how it is compared to other products and brands.
It is essential to ensure that sufficient information is available to consumers for them to know
the brand well so that they can move to the next stage.
3. Liking
At the liking stage, the process moves from cognitive to affective behavior. A brand brings
emotional comforts to consumers, and consumers form positive perspectives on the brand. For
example, the smartphone consumer might like the good-looking design or find the HD camera
of a phone very helpful.
4. Preference
Although there are features that consumers like about a brand, they might also appreciate
certain characteristics of other brands. At the preference stage, the brand needs to differentiate
itself from other products and gain consumer preference over its competitors.
5. Conviction
Conviction is the decision-making stage where the consumers’ positive feelings of a brand
convert to the certainty of buying. Consumers settle their doubts and stop moving back and
forth between brands at this point.
6. Purchase
Purchase is the final stage of the hierarchy where consumers make the action to purchase. It is
essential to provide a positive purchasing experience to consumers, e.g., offering pre-order
choices, instructions of usage, or a guarantee of post-sales support. Such efforts may encourage
consumers to purchase in larger amounts or stick to the same brand for the next purchase.
AIDA Model
The AIDA Model, which stands for Attention, Interest, Desire, and Action model, is an
advertising effect model that identifies the stages that an individual goes through during the
process of purchasing a product or service. The AIDA model is commonly used in digital
marketing, sales strategies, and public relations campaigns.

The AIDA Model Hierarchy

The steps involved in an AIDA model are:
Attention: The first step in marketing or advertising is to consider how to attract the attention
of consumers.
Interest: Once the consumer is aware that the product or service exists, the business must work
on increasing the potential customer’s interest level.
For example, Disney boosts interest in upcoming tours by announcing stars who will be
performing on the tours.
Desire: After the consumer is interested in the product or service, then the goal is to make
consumers desire it, moving their mindset from “I like it” to “I want it.”
For example, if the Disney stars for the upcoming tour communicate to the target audience
about how great the show is going to be, the audience is more likely to want to go.
Action: The ultimate goal is to drive the receiver of the marketing campaign to initiate action
and purchase the product or service.
DAGMAR APPROACH
DAGMAR is a marketing expression that stands for “Defining Advertising Goals for Measured
Advertising Results”. It is a marketing tool to compute the results of an advertising campaign.
DAGMAR attempts to guide customers through ACCA model. According to this approach,
every purchase encounters four steps; Awareness, Comprehension, Conviction, and Action.
DAGMAR method is an established technique of creating effective advertising.
DAGMAR is an advertising model proposed by Russell Colley in 1961. Russell Colley
advocated that effective advertising seeks to communicate rather than to sell. Advertisers
discover whether their message conveyed enough information and understanding of a product
to their consumers and also its respective benefits from clear objectives.
The DAGMAR Model

1. AWARENESS
Awareness of the existence of a product or a service is needful before the purchase behaviour
is expected. The fundamental task of advertising activity is to improve the consumer awareness
of the product.
Once the consumer awareness has been provided to the target audience, it should not be
forsaken. The target audience tends to get distracted by other competing messages if they are
ignored.
Awareness has to be created, developed, refined and maintained according to the characteristics
of the market and the scenario of the organization at any given point of time.
The objective is to create awareness about the product amongst the target audience.
2. COMPREHENSION
Awareness on its own is not sufficient to stimulate a purchase. Information and understanding
about the product and the organisation are essential. This can be achieved by providing
information about the brand features.
Example: In an attempt to persuade people to budge for a new toothpaste brand, it may be
necessary to compare the product with other toothpaste brands, and provide an additional usage
benefit, such as more effective than other toothpaste because it contains salt or that this
particular toothpaste is a vegetarian toothpaste, which will, in turn, attract more customers.
The objective is to provide all the information about the product.
3. CONVICTION
Conviction is the next step where the customer evaluates different products and plans to buy
the product. At this stage, a sense of conviction is established, and by creating interests and
preferences, customers are convinced that a certain product should be tried at the next purchase.
At this step, the job of the advertising activity is to mould the audience’s beliefs and persuade
them to buy it. This is often achieved through messages that convey the superiority of the
products over the others by flaunting the rewards or incentives for using the product.
Example: Thumbs up featured the incentive of social acceptance as “grown up”. It implied that
those who preferred other soft drinks were kids.
The objective is to create a positive mental disposition to buy a product.
4. ACTION
This is the final step which involves the final purchase of the product. The objective is to
motivate the customer to buy the product.

FCB GRID
The FCB grid or Foote, Cone and Belding model is an integrative approach to interpret the
consumer’s buying behaviour and its implication for adopting suitable advertising strategy. It
is depicted on a matrix with the help of four significant factors, i.e., thinking, feeling, high
involvement and low involvement.
In 1980, Richard Vaughn, along with his associates, suggested the FCB Model. He was the
Senior Vice President of FCB (Foote, Cone and Belding) Advertising company at that time.
FCB matrix works on the four significant factors arranged in a pattern.
Here, the thinking to feeling aspect stretches from left to right on the x-axis, while the high to
low involvement moves from top to bottom on the y-axis.
Informative (Quadrant 1): The expensive products having a high level of importance to the
consumers and requires intense thinking for decision-making, lies in this category.
The prospective buyer first learns or gathers complete information about the product; then,
he/she feels the need of buying it; and later makes the final purchase.
Affective (Quadrant 2): The valuable products which hold an emotional attribute and requires
consumer engagement are considered to be affective products.
The buyer follows a feel, learn and do order. That is he/she first develops a connection with
the brand or the product; gains complete knowledge of it; finally buys it.
Habitual (Quadrant 3): This category of products includes everyday essentials. Thus, the
customer experiences a low involvement but analytical decision making while purchasing these
items.
The buyer first obtains the product; tries it out and determines whether it solves the purpose or
not; then develops a trust in the brand.
Satisfaction (Quadrant 4): The products whose purchase is driven by the emotions; however,
the buying decision does not require much consumer involvement, lies in this quadrant.
The consumer buys the product; feels positive or negative about the purchase; and then learns
about the product.

Cognitive Dissonance
The term cognitive dissonance is used to describe the mental discomfort that results from
holding two conflicting beliefs, values, or attitudes. People tend to seek consistency in their
attitudes and perceptions, so this conflict causes feelings of unease or discomfort.
The inconsistency between what people believe and how they behave motivates them to engage
in actions that will help minimize feelings of discomfort. People attempt to relieve this tension
in different ways, such as by rejecting, explaining away, or avoiding new information.
Advertisers try to paint a picture that your life isn’t complete without their product or their
service. Many use cognitive dissonance to point out the inconsistencies between the idealized
version of you and the real-life you. You experience dissonance because you want to see
yourself in that idealized way, but you don’t necessarily use that product or service.

Innovation Adoption
The Innovation Adoption Curve classifies consumers by their willingness to adopt new ideas,
technologies, or trends. Developed in 1962 by E.M. Rogers, it’s also known as the Diffusion
of Innovation Theory, Consumer Adoption Curve, or The Rogers Adoption Curve.
The Innovation Adoption Curve is represented by a bell-curve graph, which is used to show
deviations within a group. The highest point on a bell curve indicates the majority; the early
majority and late majority make up most of the population.
he Innovation Adoption Curve has 5 categories: innovators, early adopters, early majority, late
majority, and laggards. Each category features different characteristics, which shed light on
whether or not consumers will be on board with something new, whether it’s a new drink flavor
from a soda brand or a new style of car.
The Innovation Adoption Curve categories include:
1. Innovators
2. Early Adopters
3. Early Majority
4. Late Majority
5. Laggards
Innovators: Innovators are the risk takers. They are the people who are willing to try the
newest app, lifestyle habit, or fashion trend. Innovators tend to think outside-the-box, and you
likely won’t find them going with the flow. It’s estimated that innovators make up 2.5% of the
population.
Early Adopters In order to be an early adopter, you also need to be somewhat of a risk taker.
These people are more informed than innovators and tend to push a new trend or technology
to a wider audience. Making up roughly 13.5% of the population, early adopters typically have
some degree of persuasive power or leadership status.
Early Majority: Making up about 34% of the population, the early majority needs time to pass
before adopting something new. While they may have some relationships with early adopters,
they take significantly longer to welcome new products or trends into their lifestyle.
Late Majority: Those in the late majority require more extensive research and proof before
adopting a new product, technology, or trend. Making up 34% of the population, the late
majority tends to accept something new due to peer pressure because everyone else has already
made the change.
Laggards: Laggards are not only the last group to adopt an innovation, they’re also resistant
to change and prefer tradition. Surprisingly, this group makes up 16% of the population. By
the time a laggard has come around to adopting an innovation, if at all, it may be obsolete.
Information Processing Model of advertising effects
Information processing model of advertising affects developed by William McGuire. This
model assumes the receiver in a persuasive communication situation like advertising is an
information processor or problem solver. He goes through in being persuaded which constitutes
a response hierarchy. The various steps like presentation, attention, comprehension, yielding,
retention & the behavior are present in information processing model.
Role of advertising in marketing process:

The overarching strategic objective of advertising is to attract the attention of consumers to the
services offered by the business, as well as to establish marketing communication. Based on
the study of marketing experience, the following main objectives of advertising can be
identified:

Inform

This objective stands for informing client groups about the object of advertising and creating
interest in it. Advertising is used to inform consumers about new products, services, ideas on
the market. In this case, it implies the introduction of goods on the market, as well as the search
for mass consumers. The use of advertising in the early stages of production has a positive
effect on the quick sales of the product and its high appreciation.

Persuade

To successfully promote the production of an enterprise, a prerequisite is the conviction of the

superiority of products over other products and services. With the successful implementation
of the subject's activities, for the consistent management of products, advertising has a positive
effect on making the choice of consumers fall on this particular product among all others.

Increase in Sales

One of the main goals of advertising is to encourage consumers to make frequent purchases.
As a result, it is envisaged to increase the number of retail outlets with products, as well as their
free movement in the market.

Increase Consumer Demand

The increase in consumer demand for the advertised product contributes to an increase in the
number of dealers in this product, as well as distributors who want to distribute it.

Brand Attachment

A successful brand designed for a product or service grabs the attention of customers for a long
time. By convincing that it is possible to count on the long-term quality of the brand, the
company will be able to significantly improve its image, as well as contribute to the recognition
of its brand and logo.

Brand Recognition

One of the most important functions of advertising is to increase the company's awareness.
This, in turn, encourages consumers to be attracted to brand’s other products or another
production line in the future.

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.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.

Types of Market Segmentation

There are four primary types of market segmentation. However, one type can usually be split
into an individual segment and an organization segment. Therefore, below are five common
types of market segmentation.
Demographic Segmentation
Demographic segmentation is one of the simple, common methods of market segmentation. It
involves breaking the market into customer demographics as age, income, gender, race,
education, or occupation. This market segmentation strategy assumes that individuals with
similar demographics will have similar needs.
Example: The market segmentation strategy for a new video game console may reveal that
most users are young males with disposable income.
Geographic Segmentation
Geographic segmentation is technically a subset of demographic segmentation. This approach
groups customers by physical location, assuming that people within a given geographical area
may have similar needs. This strategy is more useful for larger companies seeking to expand
into different branches, offices, or locations.
Example: A clothing retailer may display more raingear in their Pacific Northwest locations
compared to their Southwest locations.
Behavioral Segmentation
Behavioral segmentation relies heavily on market data, consumer actions, and decision-making
patterns of customers. This approach groups consumers based on how they have previously
interacted with markets and products. This approach assumes that consumers prior spending
habits are an indicator of what they may buy in the future, though spending habits may change
over time or in response to global events.
Example: Millennial consumers traditionally buy more craft beer, while older generations are
traditionally more likely to buy national brands.1
Psychographic Segmentation
Often the most difficult market segmentation approach, psychographic segmentation strives to
classify consumers based on their lifestyle, personality, opinions, and interests. This may be
more difficult to achieve, as these traits (1) may change easily and (2) may not have readily
available objective data. However, this approach may yield strongest market segment results
as it groups individuals based on intrinsic motivators as opposed to external data points.
Example: A fitness apparel company may target individuals based on their interest in playing
or watching a variety of sports.
Targeting
Targeting is the process through which an advertiser identifies its target audience and then advertises
to them through a variety of channels. By constructing the right user persona, understanding user habits
and finding the right platforms to reach them, an advertiser uses targeting to improve the performance
of their campaigns.

 Size: Consider how large your segment is as well as its future growth potential.
 Profitability: Consider which of your segments are willing to spend the most money on
your product or service.
 Reachability: Consider how easy or difficult it will be for you to reach each segment
with your marketing efforts. Consider customer acquisition costs (CACs) for each
segment. Higher CAC means lower profitability.

Positioning

Positioning is the process of creating a distinct mental position or image of a product or a

service in the mind of the customers as compared to other brands in the market. Positioning
helps to create a unique image of the brand and the product in the mind of the consumers in
comparison with other products or brands which are already existing in the market.

Every marketer considers the brand positioning as one of the most important aspect of overall
brand creation. People have different perception about a brand based on how the brand was
positioned in the market.

Positioning is broadly classified into three types:

1. Functional
This is used when the brand or products provide solutions to problems and provide benefits to
customers. It focuses on the function, benefit or utility that it gives to the customer.
2. Symbolic
This is useful for creating a brand image which helps create brand equity, a sense of social
belongingness and ego-identification. It is when a customer has an affection, social connection,
ego identification etc. with the product.
3. Experiential
This creates sensory and cognitive simulation in the minds of the customer. It is one of the
basis of the experiences which a customer can relate to.
Companies use a positioning process, which is step-wise method to place the product or service
in the right way in the consumer's mind. If a company decides to change the way people
perceive a brand, then they revamp the logo, slogan etc. of that brand. This process is known
as repositioning of the brand, which helps create a different image of the brand.

Marketing Mix

Marketing Mix is a set of marketing tool or tactics, used to promote a product or services in
the market and sell it. It is about positioning a product and deciding it to sell in the right place,
at the right price and right time. The product will then be sold, according to marketing and
promotional strategy. The components of the marketing mix consist of 4Ps Product, Price,
Place, and Promotion. In the business sector, the marketing managers plan a marketing strategy
taking into consideration all the 4Ps. However, nowadays, the marketing mix increasingly
includes several other Ps for vital development.

Product in Marketing Mix:

A product is a commodity, produced or built to satisfy the need of an individual or a group.

The product can be intangible or tangible as it can be in the form of services or goods. It is
important to do extensive research before developing a product as it has a fluctuating life cycle,
from the growth phase to the maturity phase to the sales decline phase.
A product has a certain life cycle that includes the growth phase, the maturity phase, and the
sales decline phase. It is important for marketers to reinvent their products to stimulate more
demand once it reaches the sales decline phase. It should create an impact in the mind of the
customers, which is exclusive and different from the competitor’s product. There is an old
saying stating for marketers, “what can I do to offer a better product to this group of people
than my competitors”. This strategy also helps the company to build brand value.

Price in Marketing Mix:

Price is a very important component of the marketing mix definition. The price of the product
is basically the amount that a customer pays for to enjoy it. Price is the most critical element
of a marketing plan because it dictates a company’s survival and profit. Adjusting the price of
the product, even a little bit has a big impact on the entire marketing strategy as well as greatly
affecting the sales and demand of the product in the market. Things to keep on mind while
determining the cost of the product are, the competitor’s price, list price, customer location,
discount, terms of sale, etc.,

Place in Marketing Mix:

Placement or distribution is a very important part of the marketing mix strategy. We should
position and distribute our product in a place that is easily accessible to potential
buyers/customers.

Promotion in Marketing Mix:

It is a marketing communication process that helps the company to publicize the product and
its features to the public. It is the most expensive and essential components of the marketing
mix, that helps to grab the attention of the customers and influence them to buy the product.
Most of the marketers use promotion tactics to promote their product and reach out to the public
or the target audience. The promotion might include direct marketing, advertising, personal
branding, sales promotion, etc.