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Goa Institute of Management

Foreword
It is a matter of great pride for me to write the foreword for Ityukta,
the Newsletter for our very own Marketing Club - MECCA.

We, the batch of GIM Y2K had founded MECCA, way back in 1999,
to bring together like-minded students who got excited about Sales &
Marketing, Brands, Advertising, Market Research and Consumer Behaviour. I still remember we even ran a Name & Logo contest
amongst students. There was voting and only then we finalised on the name MECCA. All this in a physical
world... I wish there was Facebook and connectivity then, perhaps we would have got more participation.

Our first major initiative was a Quiz for the industry and colleges called WIZBIZ, which happened soon after
forming the club. The reason I feel proud is the very fact that not just MECCA and WIZBIZ survived, but it
scaled unprecedented heights. Today, GIM WIZBIZ happens to be one of the biggest and most sought after B
-School Corporate quiz in the country with Major Prize Money, and I still remember us toiling from Panjim to
Ponda for meagre amount of sponsorships. Today MECCA is also organising National Level Case Study competitions, with a lot of fanfare. All these initiatives should help MECCA and GIM to scale greater heights.

This note will be incomplete without mentioning the entrepreneurial drive of few of the other founding members, who toiled hard to make the Club and WIZBIZ a success. Mainak Chakravarty, Aruni Ghosh, Chetan
Ghadge, Kaushik Ghate, Ankur Mittal, Vijay Sequeira, Girish Nair, Jason Rego, Jaideep Kumar, Saurav
Mukherjee, Himanshu Narang, and Shishir Jha. I know I have missed many others, and it is going to come
back to bite me later.

I take this opportunity to thank every member of MECCA of the subsequent batches. I have met quite a few
of them over the years and every time felt proud of their achievements and drive to make MECCA even bigger. Today, for that matter, we have the first Newsletter as well.
All the Best and here's to new beginnings!
Cheers!

Sagnik Ghosh
Batch of 2000
Founding Member - MECCA - The Marketing Inveterate

Senior Vice President


Head of Brand and Marketing Strategy
Star Network
-----------

Goa Institute of Management

MARKETING ESSENTIALS
Terms that you should know!

Marketing Mix
(4 Ps )

MARKETING REVISION
Marketing: is an organizational function and
a set of processes for creating, communicating, and delivering value to customers and
for managing customer relationships in ways
that benefit the organization and its stakeholders.

1.

Anything that can be offered to a market


for attention, use or consumption that
might satisfy a want or need. It includes
any tangible item, services, ideas, concepts or a person.

Evolution of Marketing

Simple Trade
Revolution)

Era

Production Era (1860s 1920s)

Sales Era (1920s 1940s)

Marketing Department Era (1940s


1960s)

Marketing Company Era (1960s


1990s)

Relationship Marketing Era (1990s


2010)

Social/Mobile Marketing Era (2010


Present)

Marketing is the
art of creating,
communicating,
and delivering
value to the
customer and
shareholders

Product

(Pre-Industrial

2. Price
The sum of the values that consumers
exchange for the benefits of having or
using the product or services.
3. Place (Distribution Channel)
A set of interdependent organizations
involved in the process of making a
product or service available for use or
consumption by the consumer or business user.
4.

Promotion

Promotion is coordination of methods


of communication that a marketer may
use to provide information to different
parties about the product. Promotion
comprises elements such as advertising,
public relations, personal selling, etc.
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Market

A place where buyers and sellers meet, goods


and services are offered for sale, and transfer
of ownership occurs.

A Business has
only two
functions:
Marketing and
Innovation

Roles comprising the Market

The Marketer

The Decision Maker

The Consumer

The Purchaser

The Influencer

Segmentation, Targeting and Positioning


Market Segmentation

Difference between Needs, Wants and


Demands
Needs
Needs are basic human requirements and
include food, clothing and shelter. An extended part of the needs today has become education and healthcare.

The process of dividing a broad market into


subsets of consumers, businesses or
countries who have, or are perceived to have
common goals, interests and priorities and
then designing and implementing strategies to
target them.
Bases of segmentation

Wants

Geographic Segmentation

Needs become wants when they are directed


to specific objects that might satisfy the
human needs.

Demands

Size of metropolitan area:


according to size of population

Human wants that are backed by buying


power.

Region: by continent, country, state or even


neighbourhood
segmented

Population density: often classified as urban,


suburban or rural
Climate: according to weather patterns
common to certain geographic region

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Demographic Segmentation

Age

Education

Gender

Ethnicity

Family Size

Occupation

Income

Nationality

Religion

Socio Economic Classes

Defining the abilities of the company


and resources needed to enter a market

Analysing
competitors
resources and skills

Considering the companys abilities


compared to the competitors abilities

Deciding on the actual target markets

on

their

Psychographic Segmentation

Grouping customers according to their


lifestyle. Few tools to measure lifestyle:
Activities

Interests

Opinions

Attitudes

Values

Behavioural Segmentation

Based on actual customer behaviour towards


products. Few variables to measure:
Benefits sought

Usage rate

Brand loyalty

Readiness to buy

Positioning
Positioning is the act of designing a
companys offering and image to occupy a
distinctive place in the minds of the target
market.
It can also be defined as, All the activities
undertaken by a marketer to create and
maintain the concept of value regarding its
brand in the minds of customers as against its
competitors brands.

User status: potential, first-time, regular, etc.


Occasions: holidays and events that stimulate
purchases

Targeting
The process of evaluating each market
segments attractiveness and selecting one or
more segments to enter.
After the most attractive segments are selected, a company should not directly start
targeting all these segments other important
factors come into play defining a target
market. Four sub activities form the basis for
deciding on which segments will actually be
targeted.
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Three important types of targeting strategies:


Strategy
Undifferentiated
Concentrated/
Niche
Differentiated

Description
Sending the same promotional
message to everyone
Designing a promotional message that communicates the
benefits desired by a single
specific segment
Designing more than one promotional message, with each
communicating different benefits

Meso Environment

The industry in which a company operates


and the industry markets. Meso environment
consists of factors of the market wherein the
business is active:
Distribution

Competition

Competitors

General industrial factors

Micro (Internal) Environment

Small forces within the company that affect


its ability to serve its customers. Factors that
affect micro environment are:

Situational
Analysis is the
foundation of a
marketing plan

Customers

Employees

Competitors

Supplier

Shareholders
Marketing Environment
The market environment is a marketing term
and refers to factors and forces that affect a
firms ability to build and maintain successful
relationships with customers.
There are three levels of the environment:

Macro Environment

Macro environment refers to those factors


which are external forces in the companys
activities. Few elements of macro environment are:
Economic

Political

Legal

Socio-cultural

Demographic

Technological

Positive coordination between different departments creates good internal environment


and hurdles of coordination between different departments damages internal environment.

Situational Analysis
A situational analysis often is called the
foundation of a marketing plan. A situational
analysis includes a thorough examination of
internal and external factors affecting a
business. It creates an overview of the
organization that will lead to a better
understanding of the factors that will
influence its future.

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5C Analysis

5C analysis is an environmental scan on five


key areas especially applicable to marketing
decisions. They are:
1.

2.
3.

Company: analysis of the internal


conditions of the organization, its
resources and product
Customers: analysis of markets, customer segments
Competitors: analysis of
organizations

competing

4.

Collaborators: analysis of the people


with whom it is possible to establish cooperation (distributors, suppliers, etc.)

5.

Climate/Context: analysis of other environmental conditions of the business


operation (political, economic, social/
cultural, technological)

Opportunities

Can we enter new market?

Can we expand our product line?

Can we grow the market size?

Threats

Are we likely to get new competitors?

Will new government policies hold up


our business?

Are we defenceless to economic downturns?

Other products that may be substituted


for our product?

SWOT Analysis
Strength

Do we have a unique competitive advantage?

Do we have sufficient financial resources?

Are we known as the market leader?

Do we have most modern technologies?

Weakness

Do we have lack of a clear strategic direction?

Are our facilities obsolete?

Is our profitability lesser than others?

Do we have internal operating problems?

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Customer Value

Customer value has two aspects: desired value


and perceived value.
Desired value refers to what customers desire
in a product or service. Perceived value is the
benefit that a customer believes he or she
received from a product after it was
purchased.
Customer Satisfaction
The level to which a products perceived
performance matches a buyers expectations.
Value Chain Analysis

Porters Five Forces Analysis


The Porter model involves scanning the
environment for threats from competitors
and identifying problems early on to
minimize threats imposed by competitors.

Threat of new entrants: New entrants


affect the companys profit as the consumers have more variety to choose
from

Bargaining power of buyers: Their


ability to affect the price and demanded
quantity of given product/service

Threat of substitute: More than one


firm producing similar or the same
product or service

Bargaining power of suppliers: Companys dependence on resources the


suppliers provide to create their product
or service

Rivalry among existing competitors:


Rivals fighting to be dominant in the
market, to stay in business and maximize profit

Value Chain Analysis is a useful way of thinking through the ways in which you deliver
value to your customers, and reviewing all of
the things you can do to maximize that value.

It takes place as a three stage process:

Activity Analysis, where you identify the


activities that contribute to the delivery
of your product or service.

Value Analysis, where you identify the


things that your customers value in the
way you conduct each activity, and then
work out the changes that are needed.

Evaluation and Planning, where you decide what changes to make and plan
how will you make them.

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PESTEL Analysis

Technological

Political

Technological factors affect the cost and


quality of the outputs. These also determine
the barriers to entry and minimum efficient
production level.

Political factors affects the organizations in


terms of government regulations and legal
issues and define both formal and informal
rules under which the firm must operate.

Automation

Rate of technological change


R&D activity

Political stability

Tax policy

Environmental

Employment and labour law

Environmental factors refer to ecological and


environmental aspects such as weather, climate and climate change. Climate change is a
hot topic these days and organizations are
restructuring their operations thus giving
space to innovation and concept of Green
Business.

Economic
Economic factors affect the business operations and decision making of the organization. For example, the predicted recession is
preventing the organizations from increasing
the workforce.

Economic growth

Interest rates

Inflation rate

Social
Social factors refer to the cultural and demographic aspects of the environment. For example, increase in the health consciousness
may affect the demand of the companys
product.

Age distribution

Population growth rate

Emphasis on safety

Career attitudes

Legal
Legal factors influence the companys operation, its cost, and the demand for its products.

Consumer law

Anti-trust law

Employment law

Discrimination law

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Strategic Marketing Planning


Planning
Refers to matching an organizations
resources with the available market
opportunities over the long run.

It defines the present state or purpose of an


organization.
Vision

Defines the optimal desired future state


of what an organization wants to
achieve over time

Provides guidance and inspiration as to


what an organization is focussed on
achieving in the coming years

Strategic Planning
The process of developing and maintaining
strategies to maximize the capabilities of
organizations to achieve the objective in the
changing marketing environment.
Opportunity Window
Refers to the limited amount of time available during which, a firms resources coincide
with a particular market opportunity.

Objectives and Goals


Refers to the achievement of a desired outcome.
Tactic

Means by which a strategy is implemented.

Mission Statement
Refers to over-all boundaries of an organizations activities, which includes three aspects:

What customers it serves

What needs it satisfies

What type of product it offers

Strategic Business Units (SBUs)


A unit of the company that has a separate
mission and objectives and that can be
planned independently from other company
businesses.
To be identified as an SBU an entity should:

Be a separately identifiable business

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Boston Consulting Group (BCG) Matrix


The Boston Consulting groups product
portfolio matrix (BCG) is designed to help
with long-term strategic planning, to help a
business consider growth opportunities by
reviewing its portfolio of products to decide
where to invest, to discontinue or develop
products.
This framework assumes that an increase in
relative market share will result in an increase in the generation of cash. This assumption often is true because of the experience curve; increased relative market share
implies that the firm is moving forward on
the experience curve relative to its competitors, thus developing a cost advantage. A
second assumption is that a growing market
requires investment in assets to increase capacity and therefore results in the consumption of cash. Thus the position of a business on the growth-share matrix provides an
indication of its cash generation and its cash
consumption.
Stars
In Stars the market growth rate is high as well
as the product growth rate is also high and
capturing a large market size. They need
heavy investment and excellent strategies.
Whenever the market growth will slow down,
product can turn into Cash Cows category.
Cash Cows
In Cash Cows market growth rate is low but
the product growth rate is either stable or
high relative market growth rate. Due to established products they need less investment

to hold their market share. Thus they produce a lot of cash and profit margin is relatively high.

Question marks
In question marks the market growth rate is
high but the product growth is either stable
or decreasing. They required a lot of cash to
hold their market share. Managers have
question marks for low-share. Managers may
be plan for new investments.
Dogs
In Dogs, the market growth rate is low and
the product growth rate is also low. They
may generate enough cash to maintain
themselves but do not promise to be large
sources of cash. All such products are near
to decline stage.

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Igor Ansoff Matrix

Market Research

The matrix focusses on the firms present


and potential products and markets
(customers). By considering ways to grow
via existing products and new products, and
in existing markets and new markets. There
are four possible product-market combination:

Research is the development, interpretation


and communication of decision-oriented
information to be used in all phases of the
marketing process.
Why Research?
Competitive pressure
Expanding market
Customer expectation
Cost of a mistake
Marketing Research Projects
Define the objective
Objective is to solve a problem. Research is
not a solution but no solution can be discovered without research.
Conduct a Situational Analysis

Market Penetration the firm seeks to


achieve growth with existing products in
their current market segments, aiming to increase its market share.
Market Development the firm seeks
growth by targeting its existing products to
new market segments.

Product Development the firms develops new products targeted to its existing
market segments.

A situational analysis often is called the


foundation of a marketing plan. A situational analysis includes a thorough examination
of internal and external factors affecting a
business. It creates an overview of the organization that will lead to a better understanding of the factors that will influence its
future.
Conduct an Informal Investigation
Informal investigation consists of gathering
readily available information from the company, middlemen, competitors, advertising
agencies, and consumers.

Diversification the firm grows by diversifying into new businesses by developing


new products for new markets.

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Place and conduct a Formal Investigation


Formal investigation consists of gathering
primary and secondary data and their resources.
Primary Data are the new data gathered
specifically for the project at hand.
Secondary Data are available data, already
gathered for some purpose.

Sources of Primary Data


Marketing to B2B

Survey Method
Mail Survey
Personal Interviews
Observation Method
Experimental Method
Analyse the Data
The end of the investigation is the researchers conclusions and recommendations in the form of a written report.
Conduct a Follow Up
Researcher should follow up their studies to
determine whether their results and recommendations are being used as well as improving the research data in the future.

While marketing to a B2B you want to focus


on the logic of the product. You do this by
focusing on the features of the product.
There is little to no personal emotion involved in the purchasing decision. You want
to focus on understanding the organizational buyers and how they operate within the
confines of their organization's procedures.
The B2B market has a thirst for knowledge
and they are information seekers.
Marketing to B2C
While marketing to a consumer you want to
focus on the benefits of the product. Their
decision is more emotional. Consumers are
different and demand a variety of distribution channels for convenience, not so with
the B2B market. Consumers are less likely to
be interested in a lengthy marketing message. They will want you to get right to the
point. Consumers don't want to work to understand your benefits, instead they will
want you to clearly point out the benefits to
them.

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B2B vs. B2C


Size of B2B vs
B2C Markets

Purchasing
Power

Sales Process

Cost of a Sale

Purchase Decision

The Value of
Brand

B2B
B2B markets are generally
small vertical markets, often
niche in size, comprised of a
few thousand sales prospects
to maybe as large as 100,000
prospects.
B2B sales typically have a
purchasing process that is
usually defined in months
and the sale is complex, often taking additional months
to complete.
B2B sales require consultative selling
(selling based on understanding a client's needs and
developing a relationship of
trust).

B2C
B2C markets that are typically
large broad markets of tens to
thousands to millions of sales
prospects.
B2C sales have short purchasing periods of anywhere from
a few minutes (the impulse
buy), to a few days.

B2C sales are usually direct to


the consumer or involve a retailer. The sales approach is a
traditional product sell of
convincing the consumer
they need the product or service being sold.
B2B sales are "higher ticket" B2C sales can range in cost
purchases usually costing
from a rupee to a few thoufrom just a few thousand ru- sand rupees. Except, for cars
pees to tens of millions of
and homes.
rupees.
The decision to purchase in B2C purchase decisions tend
B2B sales is generally driven to be made based on want
by need and budgets theremore than need or a budget
fore; it tends to be a very ra- and, therefore, are triggered by
tional decision.
more emotional decisions.
Brand identity in B2B marBrand identity in B2C markets
kets is created through peris created through advertising
sonal relationships and con- and now social media.
sultative selling.
Marketing vs. Sales

Marketing
Sales
Emphasis is on customer wants
Emphasis is on the product
Company first determines customers Company first makes the product and
wants and then figures out how to then figures out how to sell it
make and deliver a product to satisfy
those wants
Management is profit oriented
Management is sales volume oriented
Planning is long run oriented, in terms Planning is short run oriented, in
of new products, tomorrows market terms of todays products and markets
and future growth
Needs of sellers are stressed
Wants of buyers are stressed
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Product Classification
Consumer Product: Product bought by
final consumer for personal consumption.
Convenience Product
Product that the consumer usually buys
frequently, immediately and with a
minimum of comparisons and buying
efforts. Ex: Toothpaste
Shopping Product
Good that the customer purchase after
the process of selection. It requires
comparison on the basis of suitability,
quality, price, and style. Ex: Clothing
Speciality Product
Products with unique characteristics or
brand identification for which a significant group of buyers are willing
to make a special purchase effort. Expensive and fashionable shopping
goods like designer wear clothing.

Industrial Product: Product bought by individuals and organizations for further processing or for using in facilitating business.
Materials and Parts
Farm product, ex: Fruits, Cotton, etc.
Natural product, ex: Fish, Iron, etc.
Capital Items
Capital items of office accessories, installations, equipment, operating materials, etc.
Supplies
Operating supplies (DVDs, office stationeries)
Services
Maintenance and repair services

Unsought Product
Products that the consumer either does
not know about or do not want to
think normally before buying. It has
some emotional feelings attached. Ex:
Donations

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Product Life Cycle


The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business
that are trying to manage the life cycle of
their particular products.

will buy the product have already purchased


it), or because the consumers are switching to
a different type of product. While this decline
may be inevitable, it may still be possible for
companies to make some profit by switching
to less-expensive production methods and
cheaper markets.

Introduction Stage This stage of the cycle could be the most expensive for a company launching a new product. The size of
the market for the product is small, which
means sales are low, although they will be
increasing. On the other hand, the cost of
things like research and development, consumer testing, and the marketing needed to
launch the product can be very high, especially if its a competitive sector.
Growth Stage The growth stage is typically characterized by a strong growth in
sales and profits, and because the company
can start to benefit from economies of scale
in production, the profit margins, as well as
the overall amount of profit, will increase.
This makes it possible for businesses to invest more money in the promotional activity
to maximize the potential of this growth
stage.

Product Life Cycle Stages

Maturity Stage During the maturity


stage, the product is established and the aim
for the manufacturer is now to maintain the
market share they have built up. This is
probably the most competitive time for
most products and businesses need to invest
wisely in any marketing they undertake.
They also need to consider any product
modifications or improvements to the production process which might give them a
competitive advantage.
Decline Stage Eventually, the market for
a product will start to shrink, and this is
whats known as the decline stage. This
shrinkage could be due to the market becoming saturated (i.e. all the customers who
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Business Market
All organizations that buy goods and services for use in the production of other
products and services that are sold, rented,
or supplied to others.
Organizational buying
It is the decision making process by which a
formal organizations establish the need for
purchased products and services and identify, evaluate and choose among alternative
brands and suppliers.
Types of Buying Situation
Straight re-buy
A business buying situation in which the
buyer routinely reorders something without
any modifications.
Routine vendors from the approved vendor list
Low involvement, minimal time commitment
Ex: Papers for printing

Participants in the Business Buying Process


Buying Centre: All the individuals and
units, who are participating, in the process
of business buying decisions.
Users: Members of the organization who
will use the product or service; users often
initiate the buying proposal and help define
product specification.
Influencers: People in an organizations
buying centre who affect the buying decision, they often help define specifications
and also provide information for evaluating
alternatives.
Deciders: People in the organizations buying centre who have formal or informal
power to select or approve the final suppliers.
Gatekeepers: People in the organizations
buying centre who control the follow of information to others.

Modified re-buy
A business buying situation in which the
buyer wants to modify product specifications, prices, terms, or supplier.
Moderate level of involvement and time
commitment
Ex: Desktop computers
New Task
A business buying situation in which the
buyer purchases a product or services for
the first time.
High level of involvement and time
commitment
Ex: Selecting a website design/media
firm
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Business Buying Process

Problem Recognition
The first stage of the business buying
process in which someone in the
company recognizes a problem or
need that can be met by acquiring a
good or a service.
General Need Description
At this stage of business buying process,
company describes the general characteristics and quantity of a needed
item.

Order-routine Specification
The buyer writes the final order with the
chosen supplier(s), listing the technical specifications, quantity needed,
expected time of delivery, return policies and warranties.
Performance Review
The buyer rates its satisfaction with suppliers, deciding whether to continue,
modify, or drop them.

Product Specification
Organization decide on the product and
specifies the best technical product
characteristics of a needed item.
Value Analysis
An approach to cost reduction, in which
components are studied carefully to
determine if they can be redesigned,
standardized or made by less costly
methods of production.
Supplier Search
Buyer tries to find the best vendor available.
Proposal Solicitation
The buyer invites qualified suppliers to
submit proposals.
Supplier Selection
The buyer reviews proposals submitted
and selects a supplier or suppliers.

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Brand Strategy
Line Extension
Using successful brand name to introduce
additional items in given product category under the same brand name, such
as new flavours, forms, colours, added
ingredients, or package sizes. Ex:
Hyundai i20, Hyundai Verna, Hyundai
Creta

Brand
A name, term, sign, symbol, or design, or a
combination of these intended to identify
the goods or services of one seller or group
of sellers and to differentiate them from
those of competitors.
Brand Equity

The value of a brand, based on the extent to


which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents,
trademarks, and channel relationship.
Reason for Branding

Brand Extension
Using the same brand name to launch new
or modified products in new categories. Ex: Honda Cars, Motorcycle,
Generators and Marine Engines
Multi Brands
In this strategy, company market their
products with different brand for each
product. Ex: P&G Gillette, Ambi
Pur, Olay, Duracell, etc
New Brands
In this strategy company introduces new
brands just to increase their number of
brand or to enter in the new market.

For consumers to differentiate between


two products
To help shopkeepers manage their shelf
To help consumers to get consistent
quality
Co-Branding
The practice of using established brand
names of two different companies on the
same product.

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New Product Development Strategy

Test Marketing

Idea Generation

Before the full introduction of the product,


marketer tests the market with realistic approach by free sampling of the product or
by any other sources.

The systematic search for new product by


generating ideas through research and development.

Commercialization

Idea Screening
Screening new product ideas in order to accept good ideas and drop poor ones.
Concept and Image Development
A product concept is a detailed version of
the new product idea stated in meaningful
consumer terms. A product image is the way
consumers perceive an actual or potential
product.

After the test marketing, organization decides whether it should be launched or not.
If the test market is in the favour of the organization, they go ahead for commercialization.

Concept Testing
Concept testing is the process of testing
new product concepts, with a group of target consumers to find out the perception of
the consumer.
Marketing Strategy Development
Designing an initial marketing strategy for a
new product based on the product concept.
Business Analysis
In the process of business analysis we are
analysing the sales, costs, revenue and profit
of the new product, to find out whether
these factors satisfy the companys objectives or not.
Product Development
Developing the product concept into a
physical product in order to assure that the
product idea can be turned into a workable
product.

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PRICE
The sum of the values that a consumers exchange for the benefits of having or using
the product or services.
Types of Cost
Fixed costs
These are that type of costs which occurs at
the establishment of the organization. The
costs are not affected with the production
or sales level.
Variable costs
These are that type of costs which occurs
with each extra unit produce or sale. These
costs are directly related with the level of
production.
Total costs
Total Cost is the sum of the fixed and variable costs, for any given level of production.
Factors Affecting Pricing Decision
Internal Factors

Marketing Objective

Marketing Mix Strategy

Cost

Organizational Consideration
External Factors

The Market

Demand

Competition

Environment

Value Based Pricing


Setting price based on buyers perceptions
of value rather than on the sellers cost.
Competition Based Pricing
Setting prices based on the prices that competitors charge for similar products.
New Product Pricing Strategies
A. Market Skimming Pricing
Setting a high price for a new product to
skim maximum revenues from the segments
willing to pay the high price. The company
desires to make fewer but generate handsome revenue.
B. Market Penetration Pricing
Setting a low price for a new product in order to attract a large number of buyers and
a large market share.
Product Mix Pricing Strategies
A. Product Line Pricing Setting the price
steps between various products in a product
line, based on differences of different
products cost, features, and competitors
prices.
B. Optional Product Pricing Optional
product pricing is the pricing of accessory
products along with a main product or price
for extra value added with the main product.
C. Captive Product Pricing Setting a price
or products that must be used along with a
main product, such as blades for a razor and
film for a camera.

General Pricing Approaches


Cost Based Price
Cost-plus pricing
Adding a standard mark-up to the
cost of the product.
Breakeven pricing
In this pricing approach we tried to
achieve our break even in our desired
time period.

D. By Product Pricing Setting a price for


by products in order to make the main
products price more competitive.
E. Product Bundle Pricing In this approach we create package rates by combining several products and offering the bundle
at a reduced price.

Goa Institute of Management

Price Adjustment Strategies


A. Discount and Allowance Pricing
a. Cash Discount
Cash discount is for those customers who
pay their bills punctually or in advance.
b. Quantity discount
Quantity discount is reduction in price for
those customers who purchases in bulk
quantity.
c. Functional discount
This discount is offered by the seller for the
member of the trade channel who performs
certain function for seller, such as selling,
storing, and record keeping.
d. Seasonal discount
The seller offers this discount, for those
buyers, who purchase merchandise or services out of season.

e. Allowance
Allowance is promotional Money paid by
the manufacturers to the retailers against his
performance or as per agreement.
B. Segmented Pricing
Selling a product or service at two or more
prices, where the difference in prices is
based on the differences in the environment
of the segment.

C. Psychological Pricing
In this approach price is based on the perceptions of the consumer for the product.
D. Reference Pricing
Price that buyers carry in their minds and
refer to when they look at a given product.

E. Promotional Pricing
Temporarily pricing products below the list
price, and sometimes even below cost, to increase short-run sales.
F. Geographical Pricing
a. FOB Origin Pricing
A geographical pricing strategy in which
goods are placed free on board a carrier and
the customer pays the actual freight from the
factory to the destination.
b. Uniform-delivered pricing
A geographical pricing strategy, in which the
company charges the same price plus freight
to all customers, regardless of their location.
c. Zone Pricing
A geographical pricing strategy, in which the
company divide their all clients location in
different zones as per distance with the production house and fix charges for each zone.
All customers within a zone pay the same
price. The more distance of zone causes
higher the price
d. Basing Point Pricing
A geographical pricing strategy in which the
seller designates some city as a basing point
and charges all customers the freight cost
from that city to the customer location, regardless of the city far from the production
house.
e. Freight-absorption Pricing
A geographical pricing strategy in which the
company absorbs all or part of the actual
freight charges in order to get the business.

Goa Institute of Management

Promotion Mix

A. Advertising
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
B. Personal Selling
It is personal presentation by the firms sales
force for the purpose of making sales and
building customer relationship.
C. Sales Promotion
It is short-term incentives, to encourage the
purchase or sale of a product or service.
D. Public Relations
Building good relations with the companys
various publics and corporate clients by
publicity and interacting in favourable
moods and media, as well as handling unfavourable rumours, stories and events are also the part of public relation.

E. Direct Marketing
Direct communications with targeted individual consumer to obtain an immediate response and development of long-term relationship.
Integrated Marketing Communication
The concept under which a company carefully integrates and coordinates its many
communications channels to deliver a clear,
consistent, and compelling message about
the organization and its products.
Developing Effective Communication

Identifying the Target Audience


Objective
Designing a Message
Message Contents
Message Structure
Choosing Media

Personal Communication Channel/


Non-personal Communication Channel
Selecting the Message Source
Collecting Feedback

Advertising objective
It is a specific communication task to create
awareness within a specific target audience,
during a specific period of time.
Advertising Agency
A marketing services firm that assists companies in planning, preparing, implementing,
and evaluating all or portions of their advertising programs.
Types of Advertising Agencies

Creative Agency
Agency on Record (AOR) or Media
Buying Houses
Public Relation
Off Line Advertising Agency
Production Houses
Strategic Planners

Direct Marketing
Direct communications with targeted individual consumers to achieve an immediate
response and develop long lasting customer
relationships. This communications is carried out through E-mail, Direct mail, Telephone, Catalogues, Fax, etc.

Forms of Direct Marketing

Face to Face Marketing


Telemarketing
Direct Mail Marketing
Catalogue marketing
Direct Response Television Marketing
Kiosk Marketing

Goa Institute of Management

Goa Institute of Management

Goa Institute of Management

The event being exclusively for PGP1s saw enthusiastic participation from the
batch with 31 teams participating in the intensive round 1. Only 8 teams made it
to the final round, which was Print-Ad analysis.
Team Victorious Secret were the winners with a superb interpretation of the Ad.
Team Brand Pakodas came runners-up.
Special mention to team Neophytes which stood at 3rd position.

Goa Institute of Management

Round 2: Ad Analysis
Print Ad : Garnier Fructis

Winning Team: Victorious Secret


Sudhanshu B
Sukrit S
Apoorva R

Prathiba P

Runners-Up: Brand Pakoda


Aditya S
Dinraj P
Deeksha A
Shishir S

Goa Institute of Management

Advertisement Analysis : Victorious Secret - Brandwich Winners

This Ad primarily rests on the idea of Less is More. The minimalistic setting of the ad where
the setting is only a picture of a man and a woman with a tagline communicates the message of
being a Unisex product. If the intention was to emphasise the product being a unisex one, then
the campaign was successful in communicating the same. First impression of the Ad is deceiving. The photographer plays an optical illusion where at first sight, it seems as if the hair is his
beard. On closer inspection, one realises that it is in fact a clever positioning of a woman in
front of the man, making it seem as if it is his beard whereas it is actually her hair.
There is a contrast bias which pulls the reader to take a closer look. This is accentuated by the
pale background and the dark clothes worn by the models. The Rule of thirds which says
that the subject must be positioned on one third of the canvas to draw attention instead of the
centre is used to complement the setting. In contrast to mainstream hair care product ads
where the models hair is shown in an exaggerated lustrous manner, the lighting used here is
natural. This makes the product more relatable to the aam aadmi in Switzerland. The placement of the text is in line with the ad itself where it is all black accentuating the contrast effect.
In addition to this, the flow of the advertisement is not jarring to the eye and actually complements the movement of the eyes without effort on part of the reader. Hence, the blank spaces
are utilised efficiently, making the readers focus on the ad and not just be passive readers.
The message communicated is the versatility of the hair care product. The truth communicated
is not exaggerated by using an exclamation point. Rather, the use of a period makes it complete. Whereas other brands focus on gender specific hair care products, the focus here is to
highlight the universal utility of the product. The idea that couples can go buy one shampoo
shared by them, signified by the hooking of his hand on her back pockets, sends a message that
not all things need to be bought separately. The bald head and her hair together also emphasise
the hair itself and ensure that focus is not drawn away to anything else.
The Font used for the tagline is youth appealing and hence, hits the bullseye in ensuring that
the message of being cool and trendy youth can relate to it. The tattoos and the attire of the
models also appeal for the same. They are looking straight into the camera, as if looking directly into the eyes and making them look more confident. This sends a message of persuasion as
well.
In a nutshell, the minimalistic ad portrays a gender neutral product by a multinational company
whose tagline directly translates into for all hair types. This makes it more youth centric
whos USP is confidence and being bold and different.

Goa Institute of Management

Advertisement Analysis : Brand Pakoda - Runners-up


Picture in this print advertisement creates a casual yet bold mood which we believe works very
well. The elements creating aforesaid mood are tattooed arms of the male character and posture in which he is standing with the female character. The picture is as lovely to look at as it is
clever. This ad intends to position itself as an unisex brand.
At the right bottom corner, the ad says Fur jeden thartyp - a German statement meaning for
all hair type, this ad intends to break the bounds of the conventional thinking that hair care
products are meant to be used by the females only. Advertisement has brilliantly used the negative space by keeping it plain and solid so as to draw an undivided attention towards the characters and brands tagline. The environment here is typical well-lit studio. Minimum usage of colour and focuses attention on hair. The Garnier logo looks like a blend of arial and Avant garde
gothic, apparently a custom font. The frutics font seems to be Friz quadrata TT.
The item being advertised here is garnier frutics which includes the product range of shampoo
and conditioner. In Indian culture it has started playing a key role as India has a rich demography and consists of millions of youngsters who have become hair conscious lately. Other reason being the increasing disposable income. These reasons make it important to focus on
building brand image among the youngsters, especially those with decision making power in
buying.
Political changes in India such as FDI in retail market, an advertisement like this can come
handy when it comes to attracting the youths where other international brands are competing
for the same market segment. Social challenges in India including stereotype thinking is also
addressed here and one of them is facial hair grooming.
The ad seems to be very clear and firm on STP i.e. segmentation, target market and positioning.

Goa Institute of Management

Standing (L to R): Bhanu Nangru, Pratik Mandavia, Chinmay Datar


Sitting (L to R) : Paurnima Nalawade, Pratyay Mukhopadhyay, Prachi Jauhari
For any Feedbacks/Suggestions:
Write to us at mecca@gim.ac.in
Or Contact
Bhanu Nangru

9582582285

Chinmay Datar

9892516705

Paurnima Nalawade

9890620916

Prachi Jauhari

7409068202

Pratik Mandavia

9923229009

Pratyay Mukhopadhyay 9804674805

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Goa Institute of Management

Goa Institute of Management