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Earlier approaches
Orientation Profit driver Western European timeframe Description A firm focusing on a production orientation specializes in producing as much as possible of a given product or service. Thus, this signifies a firm Production exploiting economies of scale until the minimum efficient scale is reached. A Production until the 1950s methods production orientation may be deployed when a high demand for a product or service exists, coupled with a good certainty that consumer tastes will not rapidly alter (similar to the sales orientation). A firm employing a product orientation is chiefly concerned with the quality of Quality of Product until the 1960s its own product. A firm would also assume that as long as its product was of a the product high standard, people would buy and consume the product. A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not determining new consumer desires as such. Consequently, this entails simply selling an already existing product, and using Selling 1950s and Selling promotion techniques to attain the highest sales possible. Such an orientation methods 1960s may suit scenarios in which a firm holds dead stock, or otherwise sells a product that is in high demand, with little likelihood of changes in consumer tastes that would diminish demand. The 'marketing orientation' is perhaps the most common orientation used in contemporary marketing. It involves a firm essentially basing its marketing plans Needs and around the marketing concept, and thus supplying products to suit new 1970 to Marketing wants of consumer tastes. As an example, a firm would employ market research to gauge present day customers consumer desires, use R&D to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure persons know the product exists.

Contemporary approaches
Orientation Profit driver Western European timeframe Description Relationship marketing / Relationship management Building and keeping good customer relations Emphasis is placed on the whole relationship between suppliers and customers. The aim is to provide the best possible customer service and build customer loyalty. In this context, marketing takes place between businesses or organizations. The product focus lies on industrial goods or capital goods rather than consumer products or end products. Different forms of marketing activities, such as promotion, advertising and communication to the customer are used. Similar characteristics to marketing orientation but with the added proviso that there will be a curtailment of any harmful activities to society, in either product, production, or selling methods. In this context, "branding" is the main company philosophy and marketing is considered an instrument of branding philosophy.

1960s to present day

Business marketing / Industrial marketing

Building and keeping relationships between organizations

1980s to present day

Social marketing

Benefit to society

1990s to present day


Brand value

1980s to present day

The term marketing mix was coined in an article written by Neil Borden called The Concept of the Marketing Mix. He started teaching the term after he learned about it from an associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients"; one who sometimes follows recipes prepared by others, sometimes prepares his

own recipe as he goes along, sometimes adapts a recipe from immediately

available ingredients, and at other times invents new ingredients no one else has tried.



Robert F. Lauterborn proposed a four Cs classification in 1993 which is more consumer-oriented version of the four Ps that attempts to better fit the movement from mass marketing to niche marketing.


corporation Commodity






Consumer Orientation





Marketing Mix
Core Mix Producer Oriented Model Consumer Oriented Model Combination of Both Consumer Orientation

Place Price

Place Price

Convenience Cost

Channel Cost

Access Value

People Process Physical Evidence

People Process Physical Evidence


Consumer Circumstances Corporation (Org, Comp,Stakeholder)


What is a Product?
A Product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need Includes:

Physical Goods Services (activities, benefits, etc. that are intangible -- do not result in
ownership of a physical good)

Events Persons Places Organizations Ideas Combinations of the above


Products, Services, and Experiences

Tangible good Pure tangible with good accompanying services
Hybrid offer Service with accompanying minor goods Pure service


Auto with accompanying repair services

Airline trip Doctors with Restaurant accompanying exam snacks

The Product-Service Continuum


Levels of Product
(p. 294, Figure 8.1)
Product is a complex bundle of benefits

3. Augmented Product
Additional services & benefits (unexpected)

Delivery & credit Brand name Quality level Core benefit or service Features Aftersale service


2. Actual Product
The physical product or service


What the consumer is really buying (addresses underlying need or problem )

1. Core product


Consumer Products Classification

Convenience Products
Buy frequently & immediately

Based on buying behavior g influences strategy

Shopping Products
Buy less frequently, planned,

with minimum purchase effort

carefully compare alternatives

Intensive/widespread distribution Mass promotion by producer E,g., candy, laundry detergent

Selective distribution Promotion by producer & retailers E.g., clothing, cars, appliances

Specialty Products
Special purchase effort, but

Unsought Products
New innovations, & products

little comparison of brands

Exclusive distribution

consumers dont want to think about (no initial desire to buy)

Require much promotion
(usually personal selling)

Carefully targeted promotions by producer & retailer

E.g., Lamborghini, Rolex, Prada

Individual Product Decisions

Product attributes Branding Packaging & labeling

Product support services


Product Attributes
(pp. 299-301)
Marketings role represent the voice of the consumer
Developing a product or service involves defining the benefits that it will offer such as: Product quality
Ability of product to perform its functions; includes level (performance quality) & consistency (conformance quality) Help to differentiate the product from the competition Style = appearance Design = performance / function (as well as appearance)

Product features
Product style & design


Brand = name, term, sign, symbol, design that

identifies the maker or seller of a product

Branding = most distinctive skill of marketers

Quality & value


Advantages to consumers (a promise) Brand equity (power & value) the enduring asset



Defense against price competition


Leverage with resellers


Major Branding Decisions

Brand Name Selection Protection Brand Sponsor Manufacturers brand Private brand Licensing licensed brand Co-branding Brand Strategy New brands Multibrands Line extensions Brand extensions

Brand Name
(pp. 302-303)
Mr. Clean U-Haul Tide Kodak In-N-Out Energizer Crest Xerox Pepsi

Suggest product benefits and qualities

Healthy Choice Business Week I Cant Believe Its Not Butter Nike Cheerios Nova g Caribe (not Goodrich, Hyundai)

Easy to pronounce, recognize, remember Distinctive not too similar to competitors names Translates to other languages
Enco g Exxon

Capable of trademark protection (

no infringement not too generic (e.g., Lite g Miller Lite)

IMPORTANT: Protect from becoming generic

(aspirin, nylon, linoleum, thermos, escalator, shredded wheat) Scotch Tape Jell-O Kleenex Post-It Coke Xerox Rollerblade Windex FedEx Razor

Brand Sponsor
(pp. 303-306)
Manufacturers brands national brands Private brands retailer / store brands Growth ! Battle of the brands Major source of advantage to retailers Source of advantage to manufacturers of private brands Licensed brands fees & royalties to owner of name Very profitable in short-term, but risks Celebrities, cartoon characters, designers Corporate brand licensing Co-Branding joint venture or licensing Benefit of broadened consumer appeal Partnership risks Risks to brand equity


Brand Strategies
(Figure 8.4, pp. 306-309)
Name: Existing

Most new products (new flavors, forms, colors, ingredients, package sizes) (P & G, Estee Lauder, Seiko)

Existing Line Extension

Product Category:


(Bic pens g Bic razors)

Brand Extension



New Brands

New Brands & Multibrands: + unique positioning, brand equity Extensions widely used but most fail ! Many risks
+ instant awareness, faster acceptance, less $ to introduce - failure of new product reflects on original - name may be inappropriate - line extensions cannibalize original (little, or even negative, sales increase) - dilutes positioning - loses specific meaning & brand equity 20

Product Line Decisions

Product Line Length h
Result of line extension strategy (costs h, evaluate/prune)



Lengthen within current range of quality & price + Prestige - May not be credible

Lengthen beyond current range of quality & price

Upward Downward

+ Appeals to valueoriented consumers - Erodes image/positioning - Cannibalizes

Packaging & Labeling

Packaging is not just a container Packaging and labeling:

Sell the product silent salesperson in self-service environment

Identifies, describes, promotes

Offer customer benefits & competitive advantage

E.g., convenience, aesthetic value

Safety issues

Product Differentiation
Creating a value package that is better/different than competitions in a way that is meaningful to the customer

Not just how is your product different but distinctive ? The key phrase is meaningful to the customer A black toothpaste would be different but absurd!

What is the need for differentiation?

Product Differentiation
Different consumers have different tastes, same old will not do Consumers like to switch too Consumers like to be unique Novel stimuli are more noticed

A white person here would be instantly noticed Need to stand apart from the crowd Else, will be a me-too product

So how can one differentiate a product?

Product Differentiation
Differentiation Through Quality

Quality is the extent to which product meets customer needs and wants Can be either Performance, Conformance, Durability or Style Everest spices, acc to MR Stanfords CS Dept, Mumbai Dabbawallas sheer performance sets them apart

Differentiation Through Performance Quality

Product Differentiation
Differentiation Through Conformance

Differentiation Through Durability

Zero Defect Quality, Standardization McDonalds Japanese Cars Sundaram Fasteners

Godrej bureaus for instance Volvo trucks

Product Differentiation
Differentiation Through Style/Status

Designer wear Rolex watches Mercedes Benz Indian software companies for instance

Differentiation Through Price

Differentiation Through Channel Management

Examples would Dell and Amazon

Product Differentiation
Differentiation Through Innovation

One must work hard at differentiation, else a problem in the long run Sometimes, diff attribute may be irrelevant e.g. Pears transparency Generally, good companies will have a key strength

Sony, Apple, 3M

Must be exploited to the hilt

Services Marketing

Dramatic growth -- additional challenges

Cant be seen, tasted, felt, heard, or smelled before purchase (provide signals, tangibilize) Cant be separated from service providers



(internal marketing company to employees) (interactive marketing employees to customers) Quality depends on who provides service, and when
Cant be stored for later sale or use (match supply & demand)

Variability Perishability

The Service-Profit Chain & Internal Marketing (pp. 318-319)

5. Healthy service profits and growth
1. Internal service quality
Hiring, training, empowering, etc.

4. Satisfied and loyal customers 3. Greater service value

2. Satisfied and productive service employees



Price is the sum of all the values that consumers exchange for the benefits of having or using a product or service.
Price has historically been the major factor affecting buyer choice; but non-price factors have become increasingly important. The only element in the marketing mix that produces revenues; all others represent costs. Often handled poorly too cost-oriented & tactical, rather than customer-value oriented & 32 strategic.

Factors Affecting Price Decisions

Internal Factors
Costs (variable + fixed) (the floor) (experience curve or learning curve) Marketing objectives Marketing mix strategy

External Factors Pricing Decisions

Nature of the market & demand (the ceiling) Competition Other environmental factors (economy, resellers, government & societal concerns)


Internal Factors: Marketing Objectives

Product Quality Leadership
High prices to cover higher performance quality and R & D

Market share leadership

Marketing Objectives

Low as possible prices to become the market share leader

Current Profit Maximization

Choose the price that produces the maximum current profit (short-term)


Low prices to cover variable costs and some fixed costs to stay in business (s-t)

Low prices to prevent competition from entering the market Temporary low prices to create excitement or draw more customers Nonprofit organizations full or partial cost recovery


External Factors: Types of Markets

Pricing in Different Types of Markets
Pure Competition
Many sellers, few entry barriers, individual sellers have little effect on price (undifferentiated product Going rate pricing no control over pricing)& price wars

Pure Monopoly
Single seller

Monopolistic Competition

Many sellers who trade over a range of prices (consumers perceive product as differentiated sellers have control)

Oligopolistic Competition

Few sellers, very sensitive to each others pricing (relatively undifferentiated product no control)

External Factors: Consumer Perceptions of Price & Value

Demand Curve represents the number of units a market will buy in a given time period under different (changing) prices
normal demand price & quantity are inversely related (demand curve slopes downward) Price Elasticity refers to how responsive demand will be to a change in price.
Price Elasticity of Demand = % Change in Quantity Demanded % Change in Price

Price Elasticity of Demand

Price Inelastic Demand demand hardly changes with
a small change in price (market is not price sensitive)

P2 P1 Q2 Q1

| %rQ | < 1 | %rP |

|-10%| = 1 | 20%| 2
necessity unique, superior inexpensive few substitutes hard to compare

price h revenue h price i revenue i


Quantity Demanded

P1 Q2 Q1

Elastic Demand demand changes greatly with a small change in price (market is price sensitive)

| %rQ | > 1 | %rP | Quantity Demanded

|- 60%| = 3 | 20%|

price h revenue i price i revenue h

Prestige Goods Demand

(pp. 381)
Price h Quantity Demanded h (over a relevant range)

P2 P1 Q1 Q2

Quantity Demanded

Demand curve may slope upward:

Happens most often when: Product quality difficult for consumers to judge Consumers perceive that price indicates quality (you get what you pay for)

General Pricing Approaches

(pp. 384-390)
Costbased pricing add a standard markup to the product cost

Very popular:

But rarely makes sense:

+ simple + perceived as fair + minimizes price competition (becomes going rate)

- must be certain of costs - ignores competition - ignores consumer perceptions Only works if competitors have the same cost structure, and all use ~same markup Competition driven pricing going rate + Collective wisdom + Avoids price wars in oligopoly - Little control over price

General Pricing Approaches

(pp. 386-390, Fig. 10.7)
costs), as the key to pricing. Cost-Based Pricing
Value-based pricing uses buyers perceptions of price (not sellers
Right combination of value and price (e.g., value-pricing, EDLP)

Value-Based Pricing

Cost Price Value Customers
Product-driven Starts with product & must convince customers its worth the price

Value Price Cost Product
Customer-driven Starts with customers & designs the product to price target costing (p. 376) 40

Market-Skimming Pricing
Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay the high price.

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.
12 - 41

Product Mix Pricing Strategies

Product Line Pricing
Setting price steps between product line items.

Price points

Optional-Product Pricing
Pricing optional or accessory products sold with the main product
12 - 42

Product Mix Pricing Strategies

Captive-Product Pricing
Pricing products that must be used with the main product

High margins are often set for supplies Fixed fee plus a variable usage rate
12 - 43

Services: two-part pricing strategy

Product Mix Pricing Strategies

By-Product Pricing
Pricing low-value by-products to get rid of them

Product Bundle Pricing

Pricing bundles of products sold together
12 - 44

Price Adjustment Strategies

Discount / allowance Segmented Psychological Promotional Geographical International
Types of discounts
Cash discount Quantity discount Functional (trade) discount Seasonal discount

Trade-in allowances Promotional allowances

12 - 45

Price Adjustment Strategies

Discount / allowance Segmented Psychological Promotional Geographical International
Types of segmented pricing strategies:
Customer-segment Product-form pricing Location pricing Time pricing

Also called revenue or yield management Certain conditions must exist for segmented pricing to be effective
12 - 46

Price Adjustment Strategies

Conditions Necessary for Segmented Pricing Effectiveness
Market is segmentable Lower priced segments are not able to resell Competitors can not undersell segments charging higher prices Pricing must be legal Costs of segmentation can not exceed revenues earned

Segmented pricing must reflect real differences in customers perceived value

12 - 47

Price Adjustment Strategies

Discount / allowance Segmented Psychological Promotional Geographical International
The price is used to say something about the product.
Price-quality relationship Reference prices Differences as small as five cents can be important Numeric digits may have symbolic and visual qualities that psychologically influence the buyer
12 - 48

Price Adjustment Strategies

Discount / allowance Segmented Psychological Promotional Geographical International
Temporarily pricing products below the list price or even below cost Loss leaders
Special-event pricing Cash rebates Low-interest financing, longer warranties, free maintenance

Promotional pricing can have adverse effects

12 - 49

Price Adjustment Strategies

Promotional Pricing Problems
Easily copied by competitors Creates deal-prone consumers May erode brands value Not a legitimate substitute for effective strategic planning

Frequent use leads to industry price wars which benefit few firms
12 - 50

Price Adjustment Strategies

Discount / allowance Segmented Psychological Promotional Geographical International
Types of geographic pricing strategies:
FOB-origin pricing Uniform-delivered pricing Zone pricing Basing-point pricing Freight-absorption pricing
12 - 51

Price Adjustment Strategies

Discount / allowance Segmented Psychological Promotional Geographical International
Prices charged in a specific country depend on many factors
Economic conditions Competitive situation Laws / regulations Distribution system Consumer perceptions Cost considerations

12 - 52

Price Changes
Initiating Price Cuts is Desirable When a Firm:
Has excess capacity Faces falling market share due to price competition Desires to be a market share leader
12 - 53

Price Changes
Price Increases are Desirable:
If a firm can increase profit, faces cost inflation, or faces greater demand than can be supplied.

Methods of Increasing Price Alternatives to Increasing Price

Reducing product size, using less expensive materials, unbundling the product.
12 - 54

Price Changes
Buyer reactions to price changes must be considered.

Competitors are more likely to react to price changes under certain conditions.
Number of firms is small Product is uniform Buyers are well informed
12 - 55

Price Changes
Respond To Price Changes Only If:
Market share / profits will be negatively affected if nothing is changed. Effective action can be taken:

Reducing price Raising perceived quality Improving quality and increasing price Launching low-price fighting brand
12 - 56

Public Policy and Pricing

Pricing within Channel Levels

Competitors can not work with each other to set prices

Firms may not sell below cost with the intention of punishing a competitor or gaining higher long-run profits or running a competitor out of business.
12 - 57

Predatory pricing

Public Policy and Pricing

Pricing across Channel Levels
Price discrimination Retail price maintenance Deceptive pricing
Bogus reference / comparison pricing Scanner fraud Price confusion

12 - 58

Place represents the location where a product can be purchased.
It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

Physical distribution are activities involved in transporting products from the producer to the consumer: Mode of transport
Warehousing & Storage Order processing Inventory control

through which the ownership of goods flow on its way from the producer to the customer Distributor
Super-stockist Wholesalers Retailers Channels of distribution are the routes

Instruments that determine the intensity & manner in which goods or services will be made available
Types of channels, density of distribution, trade-relation mix, merchandising advise




Duty Free Stores Airports

Hypermart-Store Signage's

Availability- Place
Large Format stores

Large Format Stores


Shoppers Stop

Big Bazaar

Retail brands

Nokia Store

Global Players in India



Modern Grocery Store

Local stores
Local kirana stores

Promotion activities are meant to communicate & persuade the target market to buy the companys products This is done by:-

Advertising Personal selling Sales promotion- POS Public Relations Word of mouth Viral advertising

Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has five distinct elements advertising, personal selling, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the five principal elements together Advertising covers any communication that is paid for, from and cinema commercials, radio and Internet adverts through print media and billboards.


Above the line (ATL) is an advertising technique using mass media to promote brands. Major above-the-line techniques include TV and radio advertising, print advertising and internet banner ads. This type of communication is conventional in nature and is considered impersonal to customers. The ATL strategy makes use of current traditional media: television, newspapers, magazines, radio, outdoor, and internet. It differs from BTL (Below the line), that believes in unconventional brand-building strategies, such as direct mail.

BTL- Below the line

The terms "below the line" promotion or communications, refers to forms of nonmedia communication, even non-media advertising. Below the line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in FMCG products, but also for industrial products.


Whats the difference between Above the line and below the line advertising? Below the line (BTL) is an advertising technique. It uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than ATL (Above the line) strategy. These may include activities such as direct mail, public relations and sales promotion for which a fee is agreed upon and charged up front.

Below the Line

Below the line advertising typically focuses on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates The term "Below the Line" is rapidly going out of fashion in advertising circles as agencies and clients switch to an 'Integrated Communication Approach.' BTL is a common technique used for touch and feel products. Those consumer items where the customer will rely on immediate information than previously researched items. BTL techniques ensures recall of the brand while at the same time highlighting the features of the product.

Integrated Communication Approach

Definition: A management concept that is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation.

Through the line-TTL

Through the line" refers to an advertising strategy involving both above and below the line communications in which one form of advertising points the target to another form of advertising thereby crossing the "line". An example would be a TV commercial that says 'come into the store to sample XYZ product'. In this example, the TV commercial is a form of "above the line" advertising and once in the store, the target customer is presented with "below the line" promotional material such as store banners, competition entry forms, etc

Personal selling
Personal Selling: Face to face personal communication- Eureka Forbes In person selling, tele-marketing Advertising- Mass communication efforts through media Sales Promotion- Communication through contests, OOH, trade shows, free samples, yellow pages, call helplines

Personal Selling
Personal Selling

Discount coupons
Discount coupons

Publicity- Communicating with an audience by personal or non-personal media that are not paid for delivering the message Print media news, broadcast media newsUTI,PTI, Reuters, annual reports, speeches by employees


Known companies
Recognizable companies


Fly High

Examples-Lux Same theme over the years


Celebrity endorsement
Using famous people to attract target segment

ICICI Bank- Print Ad

Brand Ambassador Star Power

TV Channels

TV Channels

TV Channels

TV Channels

TV Channels

More than just news

Entertaining information to add spice

First thing in the morning

Print Media
Print- Newspapers & Magazines


Print Media
Newspapers & Magazines

Read everywhere

Newspapers you could read

Economic Times Business Standard Mint Hindu Businessline Business News in daily newspapers The Hindu

Growing radio stations in India

Radio Stations
Numerous- FM

Radio channels
Meow targets at women

Bajaate Raho- Red FM

Radio on the internet

On the internet

Videos can be uploaded

Companies upload their corporate films

Sales Staff & PR

Sales staff often plays an important role in word of mouth and Public Relations

Public Relations
Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum.

Press Release
Press Release

Public Relations
Press Conferences

Media Entertainment

PR Material
Press kit to be given to press with all info.

Press Conference
Spokesperson of the company talks to the press

Client Meetings
Word of mouth publicity

Word of mouth publicity

Word of mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication but now includes any type of human communication, such as face to face, telephone, email, and text messaging

Word of mouth publicity


Word of mouth publicity

At meetings

Responding to competitor activity & messages You may have seen similar activity in cola ad wars

Reports in media
Cola war shifts to a new turf The famous cola wars have found a new battleground the Indian fields. The worlds largest beverage company CocaCola, like its rival PepsiCo, is finalising plans for sourcing fruit from India for its juice brands.

Cola vans act as OOH

Pepsi van

Cola signages

Vending Machines
Vending machine- Note both brands

Recognizable logos
Coke vs Pepsi

Sales Promotion
Yeh Dil Maange More!!!

Point of Sales
Point of sales (POS) or checkout refers to both a checkout counter in a shop, and the location where a transaction occurs

POS Display

Cola Ads-Promotion
Cola drinks- Thums Up, Coca Cola

Vodafone vs Airtel


Telecom Ad- Messages

Airtel- Now Airtel removes distances across India. Vodafone- Happy to Help Spice- Faltoo callers ki No Entry

Vodafone vs Airtel Ads

Celebrity endorsement

Reliance Telecom

Reliance Mobile- Hritik

Reliance Mobile
Hritik Roshan

What an idea, Sirji

Walk when you talk

OOH- Idea Cellular

Idea Cellular
IDEAs ad campaigns based on the theme of Democracy; Championing a world without caste; Championing a world in which no one suffers from the disability to communicate; and Education for All, have been a huge success amongst all categories of audience.

Effectiveness of Campaign
The testimony of the success of the campaign is reflected from the rapid growth of IDEAs subscriber base in the country. The Aditya Birla Group company has grown to become the 3rd largest private GSM operator with over 43 million subscribers across 16 service areas, nationally.

Bus shelters
Same message across all media


Signages & Gates

Brands using OOH


Mobile truck- OOH

Outdoor trucks with billboard

Trade Shows & Events

Trade Shows Events

Wall paintings- Shutters


Airline Ad Wars
Marketers should be ready to face communication challenges Jet Airways- Weve Changed Kingfisher- We made them change Go Air- Weve not changed; we are still the smartest way to fly

Ad wars
In Mumbai- Same location on Nariman Point

Viral Marketing- Word of mouth

Viral marketing depends on a high passalong rate from person to person. If a large percentage of recipients forward something to a large number of friends, the overall growth snowballs very quickly. If the pass-along numbers get too low, the overall growth quickly fizzles.

Viral Marketing
Word of mouth

Word of Mouth Publicity

On the internet
On the Internet, viral marketing is any marketing technique that induces Web sites or users to pass on a marketing message to other sites or users, creating a potentially exponential growth in the message's visibility and effect.

Hotmail- Excellent Viral Marketing

Hotmail--One example of successful viral marketing is Hotmail, a company, now owned by Microsoft, that promotes its service and its own advertisers' messages in every user's e-mail notes.

Hotmail- Viral Marketing

In 1996, Hotmail was a particularly unique email service in that it was free, could be accessed anywhere, and would allow the user to have multiple accounts. One of the interesting things Hotmail did was it would attach the message "Get your free email at Hotmail" at the bottom of every email sent by a Hotmail user. Once the receiving user clicked on the word "Hotmail" they were taken to Hotmail's homepage where the free email service was further explained. The plan, original at the time, worked. By 1998, Hotmail had accumulated 12 million subscribers. Hotmail eventually sold to Microsoft for a cool $400 million.

Cadburys in UK
Cadbury's Dairy Milk 2007 Gorilla advertising campaign was heavily popularised on YouTube and Facebook.

Gorilla is a British advertising campaign launched by Cadbury Schweppes in 2007 to promote Cadbury Dairy Milk-brand chocolate. The 90-second television and cinema advertisement, which formed the centrepiece of the 6.2 million campaign, was created and directed by Juan Cabral and starred actor Garon Michael. The campaign itself, which comprised appearances on billboards, print newspapers and magazines, television and cinema spots, event sponsorships and an internet presence, was handled by advertising agency Fallon London, with the online segment contracted out to Hyper.

Gorilla Ad Campaign
Gorilla Campaign

Definition- Viral Marketing

The buzzwords viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of pathological and computer viruses. It can be word-of-mouth delivered or enhanced by the network effects of the Internet. Viral promotions may take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, or even text messages. The basic form of viral marketing is not infinitely sustainable.

Going Viral
Funny Helpful & Unique Controversial Amazing & Spectacular Schematic

Word of Mouth
Word of Mouth

Viral Marketing- Internet

Social Networking sites

Close to 35 million internet users in India

According to Internet market research firm comScore Inc. India had 34.6 million Internet users (who access the Web from their homes/offices) in June, of which at least 65%, or 22.61 million, accessed social networking sites. These figures have meant that people have kept launching new social sites in India fuelled by the hype but success is still far for them.

T-Shirts with company & Logo message

Inflated Balloons

Scooter covers