Introduction of

Marketing
UNIT : 1
 Nature and scope of marketing

Genesis & evolution of Marketing

concepts

7P’s of marketing

Concept of market segmentation

and its Importance
Syllabus Bases for market segmentation.

Target marketing and positioning

Types of positioning

Digital Marketing Vs Traditional

Marketing

POEM framework.
Genesis & Evolution of Marketing concepts
HISTORY

The first department store?

● Mitsui Family 1650

The first newspaper that had an advertisement?

● In England 1652, Coffee advertisement.

The first brand name on a commodity?

● 1870 Pears Soap

The first Packaging?

● 1880 Laundry Soap in England
Market

Markets have existed since middle ages. Agora in Greece.

You will find no mention of the word marketing in 1900’s.
Economists in 1910 started writing about Marketing. No
one spoke about what were the other factors that drove
demand (Adam Smith, David Ricardo Etc)
They only thing that affected by Price.
Marketing got its start in Sales Departments. (Consumer
Research, Leads and Brochures)
Best of Marketers of our Time

Feodor Ingvar Make stylish furniture

Kamprad affordable

Bring Excitement in boring

Richard Branson industries

Create Magical World for

Walt Disney
Families
 Make Flying possible for
Herb Kelleher
many people

Anita Roddick Embed Social Activism in

Business

Realise Ubiquitous
Bill Gates Computing

Provide the biggest

selection of knowledge
Jeff Bezos
delivered conveniently

Transform how people

Steve Jobs
enjoy Technology
Marketing
Marketing is the process of creating, communicating and
delivering value to customers in the form of products or services
that satisfy the needs and wants of customers.

“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and society at large”

- American
Marketing Association

“Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of
a target market at a profit”

- Philip Kotler
Concept of Needs, Wants & Demand
Value, Cost and Customer
Satisfaction
Value

Perceived benefits a consumer receives from a product or service

Combination of utility + emotional satisfaction

Cost

Both monetary and non-monetary sacrifices makes to obtain a

product or service Non monetary sacrifices includes time, effort and
inconvenience

Satisfaction

Level of contentment and fulfilment. Providing value that exceeds or

matches the cost leads to satisfaction. It will be converted to repeat
business and positive word of mouth recommendations.
Characteristics / Nature Of Marketing
1. Customer Centric
Being customer-centric means that marketing strategies
and activities are designed around understanding and
fulfilling the needs, desires, and preferences of customers.
Starbucks is known for its customer-centric approach. They offer a wide
variety of customizable beverages and encourage customers to personalise
their orders. Their rewards program and mobile app further enhance the
customer experience by making transactions seamless and offering
personalised recommendations based on past orders. (Third Wave in India)
2. Managerial Function
Marketing involves making managerial decisions to plan, execute,
and control various marketing activities, ensuring they align with the
organization's goals and objectives.
McDonald's constantly adjusts its menu offerings based on regional
tastes and preferences. They also decide on pricing strategies for
different products, considering factors such as cost, competition,
and perceived value. So they have to plan, identify the tasks,
organise it and coordinate such changes.
3. Dynamic Process
Marketing is a dynamic process that adapts to changes in consumer
behavior, technology, competition, and market trends over time.
The rise of influencer marketing demonstrates this dynamic nature.
Brands now collaborate with social media influencers to reach niche
audiences effectively. These collaborations evolve as new platforms
4. Marketing is Science and Art:

Marketing combines data-driven analysis (science) with creative strategies

that resonate emotionally with consumers (art).

Spotify's "Wrapped" campaign leverages data science to create personalized

year-in-review summaries for users. These summaries provide insights into
users' listening habits, creating an emotional connection by celebrating their
music preferences.

5. Continuous / Long-Term Process:

Marketing efforts are ongoing and require consistent attention to build brand
loyalty, customer relationships, and market presence.

Nike's "Nike Run Club" app offers training plans, rewards, and social features
to engage users in their fitness journey. By providing continuous value and
support, Nike strengthens its relationship with customers over time.
6. Goal Oriented

Marketing activities are purpose-driven and guided by specific objectives, such

as increasing sales, improving brand perception, or expanding market share.

Apple’s "Shot on iPhone" campaign, launched in 2015, showcases photographs

and videos captured on iPhones to highlight the device's camera quality. The
campaign started as a way for Apple to demonstrate that iPhones could take
professional-grade photos, leveraging user-generated content from amateur
and professional photographers. Apple initially featured select photos on
billboards, in print ads, and online galleries.

The campaign grew into a global phenomenon, with Apple launching annual
photography contests and themed challenges, such as night mode and macro
photography, each corresponding with new iPhone camera capabilities. It has
also become a community-driven movement, where iPhone users around the
world share their own work with the hashtag #ShotOniPhone on social media.
Scope / Essence of Marketing
1. Market Research

Market research involves gathering and analysing data about the market,

including consumers, competitors, and industry trends. It helps marketers gain

insights into customer preferences, market trends, and competitive landscape.

Through market research, marketers can identify opportunities, assess the

demand for their products or services, and make informed decisions about their

marketing strategies.

Case:
How Paytm Soundbox emerged as a result of great market
research.
2. Consumer Behaviour :

Consumer behaviour refers to the study of how individuals, groups, or

organisations make decisions to satisfy their needs and wants.
Understanding consumer behaviour helps marketers identify what
motivates customers to make purchasing decisions, how they perceive
products or services, and how they interact with brands. By
understanding consumer behaviour, marketers can tailor their marketing
strategies to effectively reach and engage their target audience.

Supermarket Checkout Impulse Buys, Choosing a Restaurant Based on

Online Reviews, Back-to-School Shopping, Product Packaging Influence,
Subscription Services, Preference for Sustainability, Contactless
Payments, Deal Hunting
Case:
Candy Bars & Checkout lines
3. Product Development
Before starting the actual product development, it is essential to plan the product
based on the research done in step one. Proper product development must
comprise decisions regarding the size, shape, weight, and color of the product.
Besides, its pricing and packaging should be discussed beforehand.
4. Marketing Mix - 4Ps of Marketing
Product: This refers to the tangible or intangible offering that a company
provides to meet customers' needs. Marketers need to develop products that
align with consumer preferences, solve their problems, and offer unique value.
Businesses consider attributes like product features, quality, design, branding,
packaging, and warranties.
Price: Price refers to the amount customers are willing to pay for a product
or service. It's influenced by factors such as production costs, competition,
perceived value, and consumer willingness to pay. It involves setting appropriate
pricing strategies, determining price points, payment terms and discounts.
 Place: Place refers to the distribution channels and methods used
to make the product or service available to the target market. This
involves decisions about where and how the product will be sold and
delivered. Place relates to distributing products via various channels,
including physical retail locations, online platforms and supply chain
management.

Promotion: Promotion involves the activities used to communicate

and promote the product or service to the target audience. This
includes advertising, public relations, sales promotions, and other
marketing communication strategies. Promotion focuses on
communicating valuemarketing
The traditional through advertising, public
mix, consisting of therelations, sales
4Ps (Product, Price,
promotions, personal selling, andPromotion,
digital marketing.
and Place), has been extended to encompass the 7Ps of Marketing,
acknowledging the unique challenges and considerations in service-based
industries and modern
marketing practices
 People: In service industries, the role of people becomes
paramount. This includes not only the employees directly involved in
service delivery but also the customer's experience with them. Staff
training, competence, courtesy, and interaction all contribute
to the overall service experience. Interactions between service
providers and customers are given significant attention, recognizing
the human element's impact on customer satisfaction and loyalty.
Process: Process refers to the operational procedures and
workflows that contribute to delivering a service. It involves
ensuring a seamless and efficient customer journey, from
inquiry and booking to delivery and after-sales service. Well-
designed processes enhance the consistency and quality of service,
ensuring that customer expectations are met at every step.
Businesses need to map out, streamline, and continuously improve
 Physical Evidence: Physical evidence pertains to the tangible
cues that customers encounter during their interactions with a service.
This could include the physical environment, facilities, equipment,
branding, and any tangible elements that influence the customer's
perception of the service quality. In service businesses like hotels,
restaurants, or healthcare, the physical environment plays a crucial
role in shaping customer opinions and building trust.

Case: Apple's Marketing Mix Strategy

 “Obsess Over Customers” - Jeff
Bezos
5. Consumer Satisfaction

Consumer satisfaction is the measure of how well a product or

service meets or exceeds customer expectations. It's a crucial
factor in building brand loyalty, repeat business, and positive word-of-
mouth. By focusing on consumer satisfaction, marketers can enhance
customer experiences, identify areas for improvement, and establish long-
term relationships with their target audience.

Measuring consumer satisfaction involves various methods such as

surveys, questionnaires, NPS, customer reviews, social media monitoring,
focus groups, interviews, mystery shopping, online analytics, complaint
analysis, post-purchase surveys and churn & retention rates.
Case: Myntra's
Net Promoter Score (NPS): NPS measures Shift toof
the likelihood Mobile-Only
customers E-
Commerce and Reintroduction of Website
recommending a product or service to others.
6. Digital Marketing:

Utilizing online platforms and

digital technologies to reach
and engage customers. Digital
marketing includes search
engine optimization (SEO), pay-
per-click (PPC) advertising,
email marketing, social media
marketing, and online content
creation.
Importance
1. Customer Awareness and Acquisition: Marketing helps businesses create
awareness about their products or services among potential customers. Through
various marketing channels such as advertising, social media, and content
marketing, businesses can attract the attention of their target audience and
acquire new customers.
2. Brand Building and Differentiation: Effective marketing strategies help
businesses build and strengthen their brand identity. By communicating the
unique value proposition of their offerings, businesses can differentiate
themselves from competitors and create a lasting impression in the minds of
consumers.
3. Customer Engagement and Retention: Marketing facilitates ongoing
engagement with customers, fostering loyalty and repeat business. Through
strategies like email marketing, social media engagement, and loyalty
programs, businesses can maintain relationships with existing customers,
encouraging them to make repeat purchases and become brand advocates.
4. Market Research and Insights: Marketing function in business often involves
market research to understand customer needs, preferences, and trends. By gathering
and analyzing data, businesses can make informed decisions about product development,
pricing strategies, and target markets, thereby increasing their chances of success in
competitive environments.

5. Revenue Generation: Ultimately, marketing is instrumental in driving revenue for

businesses. By effectively promoting products or services to the right audience,
businesses can increase sales and revenue streams, leading to business growth and
profitability.

6. Adaptation to Market Changes: In today’s dynamic business environment, markets

are constantly evolving. Marketing helps businesses stay agile and responsive to changes
in consumer behavior, technological advancements, and competitive landscapes. By
monitoring market trends and customer feedback, businesses can adapt their strategies
to remain relevant and competitive.

7. Support for Sales and Distribution: Marketing activities complement sales efforts
by generating leads, nurturing prospects, and facilitating the sales process. Through
marketing collateral, sales presentations, and promotional materials, businesses can
support their sales teams in closing deals and expanding their customer base.
Marketing Concept
1 2
Marketing Purchase &
Research Store
(Customer (Procurement of
Needs) Material)

6
Customer 3
Delight
Process &
(Achieving Design
Customer
Satisfaction)

5 4
Selling Warehouse
(Meeting (Storing
Customer Finished
Demand) Product)
Evolution of
Marketing
Concepts
The Production Concept

The production concept suggests that people prefer products and services that are
easily available and affordable, which is essentially the idea of mass production.

The Industrial Revolution introduced mass production, allowing goods to be produced

on a larger scale and at less cost. As per the concept cheaper products naturally
created demand.

Managers of production-oriented businesses concentrate on achieving high

production efficiency, low costs and mass-distribution.

Demand is more than that of supply. Brands that focus on mass production keep
costs low and sell to a large customer base. Each item sold attracts a low-profit
margin, but selling at a very high volume ensures that profit remains high.

That’s why Amazon can offer such low prices on its products, and why H&M can sell
clothes at affordable prices.
Product concept

The product concept emphasizes that buyers prioritize a product’s

quality, features, and benets. Product-focused buyers seek innovation
and uniqueness rather than solely seeking the lowest price. This phase
emphasized product development and improvement.

Industrialization led to a surplus of goods. Businesses were eager to

differentiate their products from competitors. They began highlighting
product features and quality to stand out. The focus was on creating
superior products that would naturally attract customers.

The product concept can lead to what Theodore Levitt called “

Marketing Myopia”.
Marketing Myopia

Theodore Levitt, a marketing professor at Harvard Business School,

coined the term "marketing myopia" in 1960. Sellers pay more
attention to the specific products they offer than to the benefits and
experiences produced by the products.

They focus on the “wants” and lose sight of the “needs.”

● Focusing on the present
● Ignoring industry trends
● Failing to adapt
● Overlooking the bigger picture
The Selling Concept

The selling concept is founded on the belief that customers will not purchase an

adequate quantity of a product or service unless they are actively persuaded to do

so.

After World Wars, economies were recovering, and there was a need to stimulate
demand. Businesses recognized the need to actively promote and sell products.

Aggressive sales tactics, advertising, and promotions were employed to

boost sales

This concept assumes that consumers typically show buying inertia or resistance
and must be coaxed into buying.

Suitable for unsought goods, insurance, encyclopedias etc.

Example

● Brands that aggressively promote Black Friday (and Cyber Monday), such
as Amazon, although many big brands also use very similar tactics.
● Brands that heavily rely on email marketing — think of those that flood your
inbox with daily emails that advertise discounts, sales, and special offers.
These brands constantly strive to capture your attention with their latest deals.
● Cold calling or emailing on a large scale without properly qualifying leads –
any tactic that prioritizes quantity over quality, emphasizing that “it’s all
about the numbers,” aligns with the sales concept.

Moreover, aggressively pushing for a sale without adequately assessing a lead’s

suitability, disregarding a customer’s refusal, employing manipulative tactics, or
making extravagant promises are all indicative of the sales concept.
Marketing concept

The marketing concept marked a significant shift towards customer

orientation. Businesses realised the importance of understanding customer
needs and wants to create products that meet those demands. Market
research and customer-focused strategies gained prominence.

The mid-20th century saw economic growth, increased consumerism, and

heightened competition. Businesses recognized the importance of
understanding customer needs and preferences to create products that align
with them. The Marketing Concept emerged, emphasising consumer
research, segmentation, and delivering superior value to customers.

Pillars of marketing concepts are customer needs, integrated

marketing, target market, profitability.
The societal marketing concept

The Societal Marketing Concept evolved, urging businesses to consider

not only customer needs but also societal well-being. Companies began
aligning their strategies with ethical and responsible practices.

It is necessitated because of environmental deterioration, resource

shortages, explosive population growth, world hunger and poverty and
neglected social services

It is based on the Montier principle. It states that companies

should be encouraged, by governments and other customers, to
provide society with goods rather than merely accumulating
capital. Companies are therefore obliged to consider societal
marketing even when they intend simply to make a profit.
Societal marketing serves the purpose of aiming at a type of long-term
sustainability within society, which is achieved through the creation of
awareness about mindless consumerism.

It has been said that society cannot escape the influence of past,
present, and future generations when it comes to marketing. Human
beings are affected by both market forces (such as price) using
economic indicators or human behavior in relation to these indicators.
Marketing
Process
Understanding the Marketplace/Situation Analysis

This initial phase involves conducting market research to gain insights

into customer demographics, preferences, behaviors, and needs. It helps
businesses identify opportunities and develop products or services that
cater to their target market.

External environment – macro environment (Political, cultural,

technological, demographic)

Internal environment – Micro environment ( employees, suppliers,

competitors, channel partners)

Situation analysis should include past, present, and future aspects

Framework for situational analysis

5 C analysis – company, customers, competitors, collaborators,

climate.

Company Culture

The Tata Group, one of India's largest conglomerates, is known for its
strong ethical values and social responsibility. This culture has
influenced their marketing decisions by emphasising corporate social
responsibility (CSR) in their branding. For instance, Tata Tea's "Jaago Re"
campaign focused on social issues like voter awareness, corruption,
climate change aligning with their culture of social consciousness.

Jaago Re -TATA TEA

Company

The Taj Group of Hotels showcased its

employees' extraordinary courage during
the 26/11 Mumbai attacks in later
marketing campaigns as a testament to the
unwavering commitment to guest safety
and exceptional service. Through
compelling narratives, individual stories of
heroism, and visuals depicting their
employees as real-life heroes, Taj conveyed
a powerful message of resilience and
dedication. These campaigns humanised
the brand, fostering a deep emotional
connection with customers and reinforcing
the hotel's commitment to providing a safe
and memorable guest experience, even in
the face of adversity.
Customers: The needs, wants, and behaviours of the company's target customers.
This is the most important factor in the micro marketing environment, as the
company's success ultimately depends on its ability to satisfy the needs of
its customers. If the company's target customers change their needs or wants, the
company will need to adjust its marketing strategies accordingly.

Netflix used to focus on licensing movies and TV shows from other studios.
However, as customers started to demand more original content, Netix
began to invest in its own productions. This strategy has been successful,
and Netix has become one of the most popular streaming services in the
world.

Competitors: The other companies that sell similar products or services to the same
target customers. The company needs to understand its competitors'
strengths and weaknesses, as well as their marketing strategies, in order
to develop effective marketing strategies of its own. If new competitors enter
the market, the company may need to lower its prices or differentiate its products or
services in order to remain Competitive.

Walmart and Amazon

SWOT Analysis
Marketing Strategy

Based on the insights gathered, the next step is to formulate a marketing

strategy that prioritizes delivering value to customers. This involves
defining the target market, positioning the product or service, and
developing a unique selling proposition that resonates with the audience.
● Segmentation
● Targeting
● Positioning
● Value proposition to the target market(unique value the product
delivers)
Marketing Mix
7P’s of marketing
Original 4 Ps

A marketing expert named E. Jerome McCarthy created the Marketing

4Ps in the 1960s.

The marketing 4Ps are also the foundation of the idea of marketing
mix.

The original 4 Ps were Product, Price, Place, and Promotion. These were
introduced by Jerome McCarthy in his book Basic Marketing: A Managerial
Approach 1960s.

Additional 3 Ps

In 1981, academics B.H. Booms and M.J. Bitner added three more elements to
the marketing mix: People, Process, and Physical Evidence.

The 7 Ps model is appropriate for businesses that specialize in services or

highly differentiated products. The 4 Ps model is more useful for small
businesses that sell standard products.
1. Product
A product is an item that is built or produced to satisfy the needs of
a certain group of people.

The product can be intangible or tangible as it can be in the form of

services or goods.

You must ensure to have the right type of product that is in demand
for your market.

So during the product development phase, the marketer must do an

extensive research on the life cycle of the product that they are
creating.
2. Price

Price is the amount that consumers will be willing to pay for a product.
Marketers must link the price point to the product's real and perceived value,
while also considering supply costs, seasonal discounts, competitors'
prices, and retail markup.

In some cases, business decision-makers may raise the price of a product to

give it the appearance of luxury or exclusivity. Or, they may lower the price
so more consumers will try it.

Marketers also need to determine when and if discounting is appropriate. A

discount can draw in more customers, but it can also give the impression
that the product is less desirable than it was.
UNIQLO, headquartered in Japan, is a global manufacturer of casual wear.
Like its competitors Gap and Zara, UNIQLO creates low-priced, fashion-forward
garments for younger buyers.

What makes UNIQLO unique is that its products are innovative and high-
quality. It accomplishes this by purchasing fabric in large volumes, continually
seeking the highest-quality and lowest-cost materials in the world. The
company also directly negotiates with its manufacturers and has built
strategic partnerships with innovative Japanese manufacturers.

UNIQLO also outsources its production to partner factories. That gives it the
flexibility to change production partners as its needs change.

Finally, the company employs a team of skilled textile artisans that it sends to
its partner factories all over the world for quality control. Production managers
visit factories once a week to resolve quality problems.
3. Place

Place is the consideration of where the product should be available—in

brick-and-mortar stores and online—and how it will be displayed.

The decision is key: The makers of a luxury cosmetic product would

want to be displayed in Sephora and Neiman Marcus, not in Walmart or
Family Dollar. The goal of business executives is always to get their
products in front of the consumers who are the most likely to buy them.

That means placing a product only in certain stores and getting it

displayed to the best advantage.

The term placement also refers to advertising the product in the right
media to get the attention of its target audience of consumers.
For example, the 1995 movie GoldenEye was the 17th installment in the
James Bond movie franchise and the first that did not feature an Aston
Martin car. Instead, Bond actor Pierce Brosnan got into a BMW Z3.
Although the Z3 was not released until months after the film had left
theaters, BMW received 9,000 orders for the car the month after the
movie opened.
4. Promotion

The goal of promotion is to communicate to consumers that they need

this product and that it is priced appropriately. Promotion encompasses
advertising, public relations, and the overall media strategy for
introducing a product.

Marketers tend to tie together promotion and placement elements to

reach their core audiences. For example, in the digital age, the "place"
and "promotion" factors are as much online as offline. Specifically, that
means where a product appears on a company's web page or social
media, as well as which types of search functions will trigger targeted ads
for the product.
Coca-Cola's "Share a Coke" campaign is an excellent example of a promotion mix done
right.

In 2011, the company integrated various promotion mix elements to create a cohesive
marketing strategy that resonated personally with consumers.

Advertising played a huge role. The campaign was everywhere — on billboards, TV ads,
and social media. This created a buzz that was hard to ignore and drove people to
actively seek out these personalized bottles.
Implementation & Control

Results of the marketing effort should be monitored closely.

As the market changes, the marketing mix can be adjusted to accommodate

the changes.

Often, small changes in consumer wants can addressed by changing the

advertising message.

As the changes become more significant, a product redesign or an entirely

new product may be needed.

Marketing process does not end with implementation – continual monitoring

and adaptation is needed to fulfill customer needs consistently over the long
term – Sustainable Marketing
Sustainable marketing

Sustainable marketing
 Cola
Wars
of
1980
https://www.youtube.com/watc
h?v=BceO3LZM1OM
Back in the 1980s, when Pepsi-Cola was trying to claim some of the
market share from Coca-Cola, Pepsi used segmentation to target certain
key audiences. They focused on an attitude and loyalty segmentation
approach and divided the market into three consumer segments:

1. Consumers with a positive attitude to the Coke brand who were 100%
loyal to Coke.
2. Consumers with a positive attitude to the Pepsi brand who were 100%
loyal to Coke.
3. Consumers with a positive attitude to both brands, with
loyalty to both, who switched their purchases between both
brands.

Pepsi had always focused their marketing efforts on the third segment, as
it was the most attractive and had the highest return on investment.
Focusing on customers loyal to Coke was considered a waste of time and
money, as they were unlikely to change their purchasing habits.
 MARKET
SEGMENTATION
Why Segment?

Markets are rarely homogeneous - they are complex.

Market aggregation strategy: appropriate where there are few

differences in needs

Where needs are diverse, segmentation:

● View the market from the customer’s position
● Design more sharply focused strategies
● Identifies opportunities for new products
Market Aggregation Strategy
Segmentation
Basis For Segmentation

i) Demographics: Segmenting the market based on

demographic variables such as age, gender, income,
education, occupation, marital status, and geographic
location. This helps identify groups with similar demographic
profiles that may exhibit common needs or buying behaviours.
ii) Psychographics: Segmenting based on psychographic
variables, which include attitude, values, interests,
personality traits, lifestyle, and opinion. This approach
goes beyond demographic characteristics to understand the
psychological and behavioural aspects that influence consumers’
iii) Behavioural: Segmenting based on consumer behaviour,
such as usage pattern, brand loyalty, buying frequency,
benefits sought, and product usage occasions. This helps
identify distinct segments based on how customers interact with
products or services.
iv) Geographics: Segmenting the market based on geographic
variables such as culture, language, climate, and population
density. This approach helps in grouping the customers based on
where they live and where they go for shopping.
v)Multi-attribute segmentation via geo clustering combines
multiple variables to identify smaller, better-defined target groups
Levels of Segmentation
1. Segment Marketing: This level of segmentation involves dividing the
market into distinct groups or segments based on common characteristics
such as demographics, psychographics, or behavioural traits. Businesses then
develop tailored marketing strategies and offerings to target each segment
separately.

For example, a clothing retailer might target different segments based

on age groups (e.g., children, teenagers, adults) and offer specific
clothing lines and promotions for each segment.

2. Niche Marketing: Niche marketing involves targeting a small and well-

defined subset of the market that has specialised needs or preferences.
Instead of catering to a broad segment, businesses focus on serving a niche
market with unique products, services, or expertise.

For instance, a company specialising in organic and gluten-free snacks

may target health-conscious individuals with specific dietary
requirements.
3. Local Marketing: Local marketing aims to target customers in a specific
geographic area or locality. Businesses customise their marketing efforts to suit
the preferences and characteristics of the local market. This approach recognises
that consumer behaviour and needs can vary across different regions or
communities.

An example would be a restaurant running location-specific promotions or

sponsoring local events to attract customers in a particular
neighbourhood.

4. Individual Marketing: Also known as one-to-one marketing or personalised

marketing, this level of segmentation involves tailoring products, services, and
marketing messages to individual customers based on their unique preferences,
behaviour, and characteristics. Advances in technology and data analytics have
made individual marketing more feasible, allowing businesses to deliver highly
customised experiences and recommendations.

For instance, e-commerce platforms may use customer browsing and

purchase history to provide personalised product recommendations.
Effective Segmentation Criteria
1.Measurable: The size and purchasing power profiles of your market should be
measurable, meaning there is quantifiable data available about it. A consumer’s
profiles and data provide marketing strategists with the necessary information on how
to carry out their campaigns.

It would be difficult to create advertisements for markets that have little to

no data or for audiences that can’t be measured. Always ask whether there is a
market for the kind of product or service that your business wants to produce then
define how many possible customers and consumers are in that market.

2. Accessible: Accessibility means that customers and consumers are easily reached
at an affordable cost. This helps determine how certain ads can reach different
target markets and how to make ads more profitable.

A good question to ask is whether it’s more practical to place ads online, on print, or
out of house. For example, gather data on the websites a specific target market usually
visits so you can place more advertisements on those websites instead.
3. Substantial: The market a brand should want to penetrate should be a
substantial number. You should clearly define a consumer’s profiles by gathering
data on their age, gender, job, socio-economic status, and purchasing power. It
doesn’t make sense to try and reach an unjustifiable number of people — you’re just
wasting resources. However, you also don’t want to market the brand to a group too
small that the business doesn’t become profitable.

4. Differentiable: When segmenting the market, you should make sure that
different target markets respond differently to different marketing strategies. If a
business is only targeting one segment, then this might not be as much of an issue.
But for example, if your target market is college students, then it’s essential
to create a marketing strategy that both freshman students and senior
students react to in the same positive way. This process ensures that you are
creating strategies that are more efficient and cost-effective.

5. Actionable: Lastly, your market segments need to be actionable, meaning that

they have practical value. A market segment should be able to respond to a
certain marketing strategy or program and have outcomes that are easily
quantifiable. As a business owner, it’s important to identify what kind of
Market Targeting

A target market is a group of customers with shared demographics who have been
identified as the most likely buyers of a company's product or service.

A group of customers that the business has decided to aim in its marketing efforts.
Identifying the target market is important for any company in the development and
implementation of a successful marketing plan. Focus on segment(s) which provide
most value.

The target market determines significant factors about the product itself. A company may
tweak certain aspects of a product, such as the amount of sugar in a soft drink, so that it
appeals more to consumers in its target group.

Broadly speaking, a product may be designed for a mass market or a niche

market.

Coca-Cola had branched out to almost all the countries and has a universal
market whereas Gatorade is targeting athletes as a drink for them
Patterns of Target Market Selection
1. Single Segment Concentration

The company may adopt this strategy if it has strong market position, greater
knowledge about segment-specific-needs, specified reputation and probable
leadership position.

2. Selective Segment Specialisation

The company selects a number of segments each of which is attractive, potential and
appropriate. There may be little or no synergy among the segments, but this strategy
has the advantage of diversifying the firm’s risk.

3. Market Specialisation

Here the company takes up a particular market segment for supplying all relevant
products to the target group.

Targeting multiple segments may result in cost economies

4.Product specialization

Product specialisation occurs when a company sells certain products to several different
types of potential customers. Product specialisation promises strong recognition of customer
within the product areas. Super Precision Components supply small nuts and screws for use
in military, industry and daily use.

5. Full market coverage

The company attempts to serve all customer groups with all the products they might need.
Only very large firms can undertake a full market coverage strategy that can be done in 2
ways:

i. Undifferentiated marketing or convergence

The company ignores market segment differences and goes after the whole market with one
market offer. It focuses on a basic buyer need rather than on differences among buyers.

ii. Differentiated marketing or divergence

The company operates in several market segments and designs different programmes for
each segment. It creates more total sales than the former.
What is Positioning?

● Market positioning is the strategic act of establishing a

unique and favorable perception of a product or brand in the
minds of consumers compared to competitors.
● Essentially, market positioning makes a promise to
customers, conveying the value a company offers above
other options and showing why it’s the best choice.
● The act of designing the firm’s market offering so that
it occupies a distinct and valued place in the minds of
its target customers.
Physical &
Perceptual
Product
Positioning
This approach focuses on the technical and tangible attributes of a product. It’s
about the measurable and objective characteristics of the product.

Key Features:
● Technical Orientation: Emphasis is placed on how the product performs or
its physical characteristics, such as size, weight, speed, or durability.
● Data-Driven: Uses quantitative and objective data to assess attributes.
● Multidimensional: Can incorporate many factors such as product
specifications, features, and price.
● R&D Implications: Product innovations are directly tied to research and
development, as improvements in physical attributes often come from
technical advancements.

Example:

A car manufacturer positioning its product based on fuel efficiency (measured in

miles per gallon) or engine horsepower. These are physical attributes that can be
objectively measured.
This approach emphasizes the consumer’s perception of the product. It focuses
on how the product is viewed in terms of emotional or subjective attributes.

Key Features:
● Consumer Orientation: Centers around the customer’s emotions, attitudes,
and perceptions.
● Marketing Research Dependent: Requires surveys, focus groups, or other
tools to understand how consumers perceive the product.
● Simplified Dimensions: Typically focuses on a few key attributes, such as
brand trust, luxury, or innovation.
● Impact of Communication: Product positioning relies heavily on advertising,
messaging, and branding strategies to shape consumer perception.
● Interpretative R&D Implications: Insights need to be interpreted to align with
R&D efforts to cater to the desired perception.

Example:

A luxury watch brand positioning itself as a symbol of status and elegance. The
focus here isn’t on technical specs but on how the brand makes customers feel
and what it represents in their minds.
FOGG- "no gas, more value"
Many consumers were dissatisfied with deodorants because they felt the gas in aerosol sprays led to
quick depletion.

Positioning Statement: Fogg was positioned as a "no gas" perfume spray, focusing on value for money
and long-lasting use.

Tagline: "Fogg chal raha hai?" (Is Fogg being used?) reinforced its practical positioning.

Highlighted its liquid-based formula, claiming more sprays per bottle compared to competitors.

Made this differentiation prominent in its advertising, turning a technical feature into a compelling
reason to buy.

While high-end perfumes often focus on luxury and exclusivity, Fogg targeted value-conscious Indian
consumers with:

Simple, relatable ads showcasing regular people.

Messages that resonated with middle-class practicality rather than aspiration.

Its humorous, direct ads appealed to a broad Indian audience.

Steps in the Positioning Process (7)

Identify relevant set of competitive products serving a

target market.

Identify the set of determinant attributes that define the “product

space” in which positions of current offerings are located.

Collect information from a sample of customers and potential

customers about perceptions of each product on the
determinant attributes.
 Determine product’s current location (positioning) in the product
space and intensity thereof.

Determine customers’ most preferred combination of determinant

attributes.

Examine the fit between preferences of market segments and current

position of product (market positioning).

Write positioning statement or value proposition to guide development

and implementation of marketing strategy.
Unique selling proposition vs Unique value proposition
Four major positioning errors

● Under positioning: This occurs when a brand or product fails to clearly

communicate its unique value proposition or stand out from competitors. The
result is that consumers see it as just another generic product in a crowded
market. Smaller toothpaste brands
● Over positioning: The brand positions itself so narrowly that it appeals to a
very small segment of the market, potentially alienating a wider
audience.Tiffany & Co.
● Confused positioning: The brand sends mixed or inconsistent messages
about what it stands for, leaving customers unclear about its identity or value
proposition.Park Avenue
● Doubtful positioning: The brand makes claims that are either unrealistic,
unverified, or inconsistent with its image, leading to skepticism from customers.
Ayurvedic or herbal cosmetic brands have faced doubtful positioning
because they claim 100% natural or organic ingredients,
Right Positioning is Critical

Nestle Maggi noodles launched in 1983

Noodles a new concept in Indian households

Two options for Nestle

● As a dinner item
● As a snack item

Targeted at children
Developing a Positioning Strategy

Positioning possibilities:
■ Attribute positioning
■ Benefit positioning
■ Use or application positioning
■ User positioning
■ Competitor positioning
■ Product category positioning
■ Quality or price positioning
Which Positioning to Promote?
ATTRIBUTE POSITIONING

Positioning on attribute
● Size
● No of years in existence
● Culture

Disneyland

Positioned as the largest

manmade park in the
world
BENEFIT POSITIONING

Focusing on the unique benefits that consumers can only gain from your
product or service.

Uber and Lyft are examples of brands that emphasize benefits.

USE / APPLICATION POSITIONING.

Use or application positioning is a marketing strategy that focuses on

how a product or service can be used or applied in specific situations,
emphasizing its practical benefits to consumers.

This approach highlights the unique applications or scenarios in which

the product excels, thereby differentiating it from competitors and
making it more relevant to target customers.
USER POSITIONING

In user-based positioning, businesses focus on a specific type of user or

customer to make their product more appealing. For example, a
company might position its product as ideal for students.

An example of such user-based positioning is how Microsoft positions its

Surface Pro tablet as ideal for students.
 COMPETITOR POSITIONING

Competitive positioning is a marketing strategy that refers to how a

marketing team can differentiate a company from its competitors. The
position of the company depends on how the value it provides with
goods and services compares to the value of similar goods and services
in the market.
This strategy essentially points the
finger at their opposite to say “We’re
the opposite of this”.
The Dollar Shave Club indirectly used
Gillette’s expensive feature heavy
razors as a point of focus, highlighted
the pain-points and offered an
alternative.
PRODUCT CATEGORY POSITIONING

Product category positioning is a strategy that places a product within a

specific category to help customers understand how it fits into their
lives. It's a foundational tool that helps businesses create an effective
marketing strategy and maintain a distinct brand identity.

Coca-Cola has consistently focused

on happiness, quality, the joy of
sharing and friendship. These
sources cited the current “Taste
the Feeling” and historical
“Always” taglines.
QUALITY OR PRICE POSITIONING

Quality and price positioning are related in that consumers often

associate higher prices with higher quality. Price positioning is the
process of setting a price point for a product or service that reflects its
perceived value to customers.
Traditional Vs Digital Marketing

Traditional Marketing:
● Traditional marketing is the old-way of marketing
Technique.
● It refers to a kind of promotion, and advertisement
includes flyers, billboards, TV ads, radio ads, print
advertisements, newspaper ads, etc. which companies
used in the early period to market their product.
● The four phases of Traditional Marketing are Interest,
Awareness, Desire, and Decision.
Digital Marketing

Digital marketing involves many of the same principles as traditional

marketing and is often considered an additional way for companies to
approach consumers and understand their behavior.

Companies often combine traditional and digital marketing techniques

in their strategies. But digital marketing also comes with its own set of
challenges.

Digital marketing started to become popular with the widespread

adoption of the internet in the 1990s
POEM framework

The POEM is a marketing methodology used by digital marketing experts to formulate the
social media marketing strategy, and it stands for Paid, Owned, and Earned Media.

It is an approach used to promote a product or service and looks at how the right mix of
media channels can attract more customers, deepen and strengthen relationships with
existing customers, and push the business towards ultimate goals of growth and success.

Digital marketers use the POEM model to develop the basic framework and implement
digital marketing strategies.

The frameworks help companies improve their marketing strategies and achieve goals and
targets.

It involves listing and selecting channels to roll out the marketing communication and what it
needs to make the plan successful.
Shared Media

Sponsored or Boosted Social Media Posts: These posts are a combination

of paid and owned media. This is because while paying to show the post to a
specific audience, the post content itself is considered owned media because you
have created it, and it lives on your social media account page.

Sponsored or Paid Influencers: Posts from paid influencers are a

combination of paid and earned media. Without payment, influencers’
comments or recommendations would be considered earned media. However,
once influencers get paid to promote your brand, that earned media turns into
paid media (with an earned media spin).

Social Media Share Requests: Social media share requests could represent a
combination of earned media (the shared social media post) and owned media, if
the organization requesting the share drafted or crafted the text for the post.
Benefits of the POEM Framework

Paid Media - Brands have larger control over Paid Media. Brands can use
paid media for better targeting of their customer, hence it’s easier to test
campaigns and brands can see immediate results.

Owned Media - Brands have total control over their owned Media. Owned
channels can help brands develop strong relationships with customers and
attract new customers.

Earned Media - Earned Media can ensure higher quality of visits and helps
build awareness, and trust amongst existing and potential customers.

All 3 elements of a POEM framework don’t work individually, but hand in

hand. A good marketing strategy consists of all 3 working in a strategic
combination.