MARKETING MANAGEMENT 12

UNITS NOTES
Unit: Introduction to Marketing Management –
Detailed Notes

1. What is Marketing?

Marketing is the process of identifying customer needs, creating value, and satisfying those
needs profitably.

Definition by Philip Kotler:

“Marketing is a social and managerial process by which individuals and groups obtain what
they need and want through creating and exchanging products and value with others.”

2. Core Concepts of Marketing

Needs, Wants, and Demands

• Needs: Basic human requirements (e.g., food, clothing, shelter)

• Wants: Needs shaped by culture and personality (e.g., Pizza, Jeans)
• Demands: Wants backed by purchasing power

Market Offerings

• Products, services, ideas, experiences offered to satisfy needs and wants.

Value and Satisfaction

• Customer Value = Benefit – Cost

• If customers are satisfied, they return.

Exchange & Transactions

• Exchange: Giving something to get something in return.

• Transaction: A completed exchange (e.g., paying ₹50 for a cold drink).

Markets

• A market consists of all potential buyers who share a need or want.

 3. What is Marketing Management?

Marketing Management is the process of planning, organizing, implementing, and

controlling marketing activities to achieve organizational goals by satisfying customer needs.

Focus: “Profitable customer relationships”

4. Importance of Marketing Management

Area Importance
Customer Satisfaction Builds trust, loyalty, repeat business
Competitive Advantage Helps beat competitors through innovation
Business Growth Drives sales, revenue, and expansion
Brand Building Creates identity and reputation
Market Understanding Helps adapt to customer and market trends

5. Functions of Marketing Management

1. Market Research – Collecting information about market and customer needs.

2. Product Planning – Developing new products and improving existing ones.
3. Pricing – Deciding the right price to balance value and profit.
4. Distribution (Place) – Ensuring products reach customers at the right time and place.
5. Promotion – Advertising, sales promotion, PR to inform and persuade.
6. Customer Relationship Management (CRM) – Building long-term relationships.
7. Marketing Control – Evaluating results and improving strategies.

6. Evolution of Marketing Concepts

Concept Focus Slogan

Production Concept Low cost, availability “Cheaper and available”
Product Concept Quality, innovation “Better product wins”
Selling Concept Aggressive selling “Sell what we make”
Marketing Concept Customer satisfaction “Make what we can sell”
Societal Concept Customer + Society welfare “Sustainable and ethical marketing”

7. Scope of Marketing Management

 • Goods marketing – FMCG, electronics, fashion, etc.
• Services marketing – Hotels, banking, healthcare.
• Rural and Urban marketing – Different approaches for different markets.
• Digital marketing – Online ads, social media, SEO, etc.
• International marketing – Marketing across national borders.

8. Objectives of Marketing Management

• Increase sales and market share

• Improve customer loyalty
• Build brand image
• Ensure customer satisfaction
• Achieve business profitability

9. Challenges in Marketing Management

• Rapid technology changes

• Highly competitive markets
• Changing consumer behavior
• Ethical and environmental concerns
• Managing customer data (privacy, security)

10. Example to Understand Marketing Management

Company: Apple

• Market Research: Finds what features users want

• Product Planning: Designs high-tech, sleek products
• Pricing: Premium pricing strategy
• Distribution: Exclusive outlets + online stores
• Promotion: Smart ads, launch events
• CRM: Excellent after-sales support
• Control: Reviews sales, upgrades features

Unit: The Marketing Process – Detailed Notes

**1. What is the Marketing Process?

The marketing process is a step-by-step method that companies use to understand customer
needs, create value, and build strong customer relationships to capture value in return.**
 It’s a 5-step model often represented as:

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1. Understand the marketplace and customer needs
2. Design a customer-driven marketing strategy
3. Develop an integrated marketing mix (4Ps)
4. Build profitable customer relationships
5. Capture value from customers to create profits and customer equity

2. Step-by-Step Explanation of the Marketing Process

Step 1: Understand the Marketplace and Customer Needs

• Identify needs, wants, and demands

o Needs: Basic requirements (e.g. food)
o Wants: Shaped by society (e.g. pizza)
o Demands: Wants backed by money
• Study market offerings (products/services)
• Conduct market research to know:
o Customer preferences
o Competitor activity
o Trends and opportunities

Step 2: Design a Customer-Driven Marketing Strategy

• Define target market: Who are you selling to? (age, location, needs)
• Decide value proposition:

What unique value will your product offer?

(Example: “Low price with high quality” or “Luxury with innovation”)

• Choose a marketing orientation:

Orientation Focus
Production Low cost, mass production
Product Quality and innovation
Selling Aggressive selling techniques
Marketing Customer satisfaction
Societal Customer + society welfare
 Step 3: Construct an Integrated Marketing Program (Marketing Mix –
4Ps)

Develop strategies that deliver the value promised.

• Product – What to offer? Design, features, quality, branding

• Price – At what cost? Discounting, credit terms, strategy
• Place (Distribution) – Where to sell? Online, retail stores, distributors
• Promotion – How to communicate? Ads, social media, events, PR

All 4Ps must be aligned to attract the target audience.

Step 4: Build Profitable Customer Relationships

Focus on creating loyalty and customer satisfaction.

• Use CRM (Customer Relationship Management)

o Personalization
o Consistent service
o Post-sale support
• Increase customer lifetime value (CLV)
o Keep existing customers happy
o Encourage repeat purchases
• Turn customers into brand advocates

Step 5: Capture Value from Customers

If customers are happy, they return the value to the business.

• Earn profits and market share

• Gain customer equity = Total combined lifetime values of customers
• Improve brand image, customer loyalty, and business growth

3. Summary of the Marketing Process

Step Focus Goal

1 Understand customer needs Market research, segmentation
2 Create marketing strategy Targeting & value proposition
3 Implement marketing mix 4Ps (Product, Price, Place, Promotion)
4 Build customer relationships Loyalty, satisfaction, CRM
5 Capture value Profits, equity, long-term success
 4. Real-Life Example: Amul

• Step 1: Understood middle-class need for affordable dairy

• Step 2: Targeted Indian households with slogan “The Taste of India”
• Step 3: 4Ps – Good quality products, reasonable pricing, wide distribution
• Step 4: Strong brand loyalty & emotional connection
• Step 5: Became India’s largest dairy brand

5. Benefits of Following the Marketing Process

• Structured decision-making
• Better customer understanding
• Competitive advantage
• Higher customer satisfaction
• Long-term profitability

Unit: Marketing Environment – Detailed Notes

1. What is Marketing Environment?

The marketing environment refers to all the external and internal factors that affect a
company's ability to develop and maintain successful customer relationships.

It includes everything that influences marketing decisions – customers, competitors,

laws, trends, technology, etc.

2. Types of Marketing Environment

Marketing environment is mainly divided into two parts:

1. Micro Environment
2. Macro Environment

3. Micro Environment (Immediate Environment)

These are the factors close to the company that affect its day-to-day operations.
 Main Elements of Micro Environment:

Element Description
Internal departments (Marketing, Finance, HR, R&D) must work
Company
together.
The target market – individuals, businesses, govt. or international
Customers
buyers.
Firms competing for the same customers – direct and indirect
Competitors
competitors.
Suppliers Provide raw materials and inputs – affect cost and quality.
Marketing Help in promoting, selling, and distributing products (e.g.,
Intermediaries wholesalers, agents, retailers).
Any group that can impact the business (media, NGOs, local
Publics
communities).

Companies must manage all micro elements well to stay competitive.

4. Macro Environment (Wider/External Forces)

These are broad external factors that affect all companies and industries, not just one.

Main Elements of Macro Environment:

Environment
Description & Examples
Type
Population size, age, gender, education, family structure (e.g., more young
Demographic
population → more smartphone sales).
Income level, inflation, employment, interest rates (e.g., recession reduces
Economic
luxury product sales).
Natural resources, climate, environmental laws (e.g., plastic ban → change
Natural
in packaging).
Innovation, automation, internet, mobile apps (e.g., rise of digital
Technological
marketing).
Laws, regulations, government policies, trade rules (e.g., GST, consumer
Political/Legal
protection laws).
Socio-Cultural Beliefs, lifestyle, culture, traditions (e.g., vegetarian products in India).
Global trade trends, international competitors, exchange rates, global
Global
pandemics, etc.

Companies cannot control these, but they must adapt to survive and grow.
 5. Importance of Marketing Environment

Reason Explanation
Helps Identify Opportunities Market trends and gaps can be spotted.
Anticipate and manage risks (e.g., economic
Helps Avoid Threats
slowdown).
Aids Strategic Planning Set goals according to environment.
Improves Customer
Respond better to changing preferences.
Understanding
Assists in Competitive Advantage Monitor competition and respond smartly.

6. Environmental Scanning

Environmental Scanning means collecting, analyzing, and using information about the
environment to make marketing decisions.

Steps in Environmental Scanning:

1. Observe changes in environment

2. Collect relevant data
3. Analyze impact on business
4. Formulate strategies accordingly

7. Real-Life Example: Patanjali Ayurved

• Demographic: Focused on health-conscious Indians

• Cultural: Used Indian traditions and Ayurveda
• Economic: Provided affordable products
• Political: Benefited from “Make in India”
• Technological: Expanded through online selling
Result: Gained huge market share in a short time

8. Differences Between Micro and Macro Environment

Feature Micro Environment Macro Environment

Scope Company-specific Affects entire industry
Control Partially controllable Not controllable
Examples Suppliers, Customers Economy, Technology, Politics
Response Can be managed through strategy Need to adapt and plan
 9. Summary Chart

Type Elements Examples

Company, Customers, Competitors, Suppliers, Amazon working with delivery
Micro
Publics partners
Demographic, Economic, Natural, Tech, Political,
Macro GST law, Youth trend, AI tools
Cultural

Unit: Consumer Buying Behaviour – Detailed Notes

1. What is Consumer Buying Behaviour?

Consumer buying behaviour refers to the thoughts, feelings, and actions people take before,
during, and after purchasing a product or service.

It helps marketers understand why, how, what, when, and where consumers buy.

2. Importance of Studying Consumer Behaviour

Reason Explanation
Understand customer needs Helps in creating suitable products
Design effective marketing mix Products, price, place, promotion aligned with buyer mindset
Predict buying patterns Understand trends and future behaviour
Build customer satisfaction Personalised service builds loyalty
Gain competitive advantage Deliver better value than competitors

3. Types of Consumer Buying Behaviour

Based on involvement and difference between brands, there are 4 types:

Type Characteristics Example

High involvement, big differences between
Complex Buying Buying a car
brands
Dissonance- High involvement, few differences between
Buying tiles or AC
Reducing brands
Buying salt or
Habitual Buying Low involvement, few differences
toothpaste
Variety-Seeking Low involvement, many differences Trying new chips
 Type Characteristics Example
brand

4. Stages in the Consumer Buying Process (5-Step Model)

1. Problem Recognition
o Buyer realizes they have a need (e.g., phone not working)
2. Information Search
o Looks for options: online, friends, reviews
3. Evaluation of Alternatives
o Compares features, price, reviews
4. Purchase Decision
o Chooses the brand/shop and makes the purchase
5. Post-Purchase Behaviour
o Is the customer satisfied or facing buyer's regret?

Marketers must support the buyer at each stage.

5. Factors Influencing Consumer Behaviour

A. Cultural Factors

• Culture: Values and beliefs from family and society

• Sub-culture: Religion, language, geography (e.g., South Indian cuisine)
• Social Class: Income, education, status (upper, middle, lower class)

B. Social Factors

• Family: Parents, spouse, children influence choices

• Reference Groups: Friends, celebrities, influencers
• Roles and Status: A person's role (student, manager) affects their purchases

C. Personal Factors

• Age and Life Cycle: Teen vs married person’s needs differ

• Occupation: Doctors vs construction workers buy different items
• Lifestyle: Health-focused, tech-savvy, traditional etc.
• Personality: Bold, introvert, luxury-lover etc.

D. Psychological Factors

• Motivation: What drives the buyer (Maslow’s hierarchy – see below)

• Perception: How the buyer interprets marketing messages
• Learning: Based on experience (good or bad)
• Beliefs and Attitudes: Developed over time and hard to change
 6. Maslow’s Hierarchy of Needs (Motivation Theory)

A very popular theory explaining what motivates consumers to buy:

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5. Self-Actualization (growth, creativity)
4. Esteem (status, respect)
3. Social (love, friendship, belonging)
2. Safety (job security, health)
1. Physiological (food, water, shelter)

People buy according to their current level of needs.

7. Buying Roles in Consumer Behaviour

In a buying decision, different people may play different roles:

Role Meaning Example

Initiator Suggests the need to buy Child wants a toy
Influencer Influences decision Friend recommends a phone
Decider Takes the final decision Father chooses the model
Buyer Actually makes the purchase Mother pays for it
User Uses the product Child uses the toy

8. Consumer vs Business Buying Behaviour

Feature Consumer Buying Business Buying

Buyer Individuals/families Companies/government
Volume Small quantity Large quantity
Decision Process Short and personal Long and formal
Emotional Influence More emotional More rational
Buyer Knowledge Limited Professional and experienced

9. Real-Life Example: Smartphone Purchase

• Problem: Old phone is slow

• Info Search: Watch YouTube reviews
• Evaluation: Compare Samsung vs Xiaomi
• Purchase: Buy during Amazon sale
• Post-purchase: Reviews shared online
 10. Summary Chart

Step Key Concept

Definition Why and how customers buy products
Process Need → Search → Evaluate → Buy → Post-use
Influencing Factors Cultural, Social, Personal, Psychological
Buying Roles Initiator, Influencer, Decider, Buyer, User
Maslow’s Theory Needs-based motivation
Types of Buying Complex, Dissonance-reducing, Habitual, Variety
Marketer's Objective Understand and influence buyer behaviour

Unit: Business Buyer Behaviour – Detailed Notes

**1. What is Business Buyer Behaviour?

Business buyer behaviour refers to the decision-making process and actions of

organizations (not individuals) when they purchase products or services for:

• Resale
• Production
• Daily operations

It is also called Organizational Buying Behaviour or Industrial Buying Behaviour.

2. Characteristics of Business Buying Behaviour

Characteristic Description
Few but large buyers Fewer buyers, but buy in bulk quantities
Close supplier
Long-term, loyal relationships with trusted suppliers
relations
Professional buying Trained staff or committees make decisions
Complex process More formal, detailed, and multi-step than consumer buying
Demand depends on consumer demand (e.g., tire demand comes
Derived demand
from car demand)
Inelastic demand Demand doesn't change much with price fluctuations
Multiple decision-
Technical, financial, and administrative people involved
makers
 3. Types of Business Buying Situations

Type Meaning Example

First-time purchase, high risk, detailed A company buying ERP software for
New Task
evaluation the first time
Modified Buyer wants to change product specs,
Changing printer paper brand
Rebuy price, or supplier
Straight Regular monthly purchase of office
Routine purchase with no changes
Rebuy tea

4. Participants in Business Buying Process (Buying Center Roles)

In business buying, many people from different departments participate:

Role Function Example

Users Use the product Employees using office laptops
Influencers Define needs, suggest specs IT team suggesting laptop brand
Buyers Handle contracts and purchase Purchase manager
Deciders Final approval authority Senior management
Gatekeepers Control information flow Admin or secretary screening suppliers

5. Steps in the Business Buying Process

1. Problem Recognition
o Company identifies a need (e.g., need for a new supplier)
2. General Need Description
o Define the need clearly (e.g., type of laptops required)
3. Product Specification
o Decide technical features, quantity, quality, etc.
4. Supplier Search
o Look for potential vendors (online, references, tenders)
5. Proposal Solicitation
o Request quotations or bids from selected suppliers
6. Supplier Selection
o Evaluate proposals based on quality, cost, delivery
7. Order-Routine Specification
o Finalize terms like price, delivery, payment, support
8. Performance Review
o Evaluate supplier after delivery; decide future business
 6. Factors Influencing Business Buying Behaviour

A. Environmental Factors

• Economic conditions, competition, technology, political climate, legal rules

B. Organizational Factors

• Company’s policies, procedures, objectives, and structure

C. Interpersonal Factors

• Influence of relationships among people in the buying center

D. Individual Factors

• Age, education, personality, risk-taking ability of participants

7. Comparison: Business vs Consumer Buying

Feature Business Buying Consumer Buying

Buyer type Organizations Individuals or households
Purchase volume Large Small
Decision process Formal and complex Informal and quick
Number of participants Multiple Mostly one
Nature of product Often technical, raw materials Finished products
Demand type Derived Final/Direct

8. Real-Life Example: A School Buying Computers

• Users: Teachers and students

• Influencers: IT staff
• Deciders: Principal and Board
• Buyers: Purchase department
• Gatekeepers: Admin staff managing vendor calls

9. Summary Chart

Topic Key Points

Definition Buying process of organizations
Key Features Bulk buying, formal process, derived demand
 Topic Key Points
Buying Roles Users, Influencers, Deciders, Buyers, Gatekeepers
Types of Buying New task, Modified rebuy, Straight rebuy
Steps in Buying Process 8 steps from problem recognition to performance review
Influencing Factors Environment, Org culture, Personal traits

10. Key Tips for Marketers

• Build long-term relationships

• Offer customized solutions
• Focus on reliability, after-sales support
• Be patient – the process is longer than consumer sales
• Maintain professional communication

Unit: Segmentation, Targeting & Positioning (STP) –

Detailed Notes

1. Introduction to STP

STP stands for:

• Segmentation – Dividing the market

• Targeting – Choosing which segment(s) to serve
• Positioning – Creating a unique image in the minds of customers

STP helps marketers understand customer needs and deliver focused solutions.

2. Market Segmentation

Market Segmentation means dividing the total market into smaller, meaningful groups
(segments) of customers with similar needs, behaviors, or characteristics.

Benefits of Segmentation

• Understand customer needs better

• Design better marketing strategies
• Optimize use of resources
• Improve customer satisfaction

Bases of Market Segmentation

 Basis Description Examples
Geographic Based on location Country, State, City, Climate
Demographic Based on population statistics Age, Gender, Income, Education
Psychographic Based on lifestyle and personality Social class, Values, Interests
Behavioral Based on customer behavior Usage rate, Loyalty, Benefits sought

A company may use multiple bases for more accurate segmentation.

3. Criteria for Effective Segmentation

Criterion Explanation
Measurable Segment size, purchasing power can be measured
Accessible Segment can be reached effectively
Substantial Segment is large and profitable
Differentiable Segments respond differently to marketing efforts
Actionable Firm can develop strategies to attract the segment

4. Targeting

Targeting is the process of selecting one or more market segments to enter and serve.

Targeting Strategies

Strategy Description Example

Undifferentiated
One offer for all Salt, sugar
(Mass)
Different offers for each Cars for youth, families, luxury
Differentiated
segment buyers
Concentrated (Niche) Focus on one specific segment Rolex watches for premium users
Tailored to individuals or local
Micromarketing Personalized shoes, local ads
areas

5. Positioning

Positioning is the process of creating a distinct image of the product in the mind of the
target customer.

It answers:
Why should a customer choose your product over others?
 Steps in Positioning

1. Identify competitors
2. Understand customer perception
3. Find unique value/differentiator
4. Choose a positioning strategy
5. Communicate the position clearly

6. Positioning Strategies

Strategy Description Example

Value-based Focus on high value “More for less” like Walmart
Benefit-based Highlight specific benefit Sensodyne – for sensitive teeth
Usage/Occasion Position for a specific use Red Bull – energy boost
User-based Position for a target user Johnson’s Baby for infants
Competitor-based Compare with rivals Pepsi vs Coke

7. Positioning Statement

A positioning statement summarizes the brand’s position in the market.

Format:

“For [target segment], the [brand] is the [frame of reference] that [point of difference]
because [reason to believe].”

Example:

“For busy professionals, Uber is the smart transportation app that saves time and effort
because of its fast and reliable service.”

8. Perceptual Mapping

A visual tool to compare brands based on two dimensions (e.g., price vs quality).
It shows how customers perceive different products or brands.

Use: Helps in identifying gaps or repositioning opportunities.

9. STP in Real Life (Example)

Example: Nike

• Segmentation: Demographic (age), Psychographic (athletes, fitness lovers)

• Targeting: Active youth and sports people
• Positioning: “Just Do It” – Focus on motivation, performance, empowerment

10. Summary Table

Step Description
Segmentation Divide the market into groups
Targeting Choose which group(s) to serve
Positioning Create a unique and strong brand image

11. Importance of STP in Marketing

• Makes marketing efforts more efficient and effective

• Helps in customer satisfaction and loyalty
• Allows competitive advantage
• Reduces waste of resources
• Improves branding and communication

Unit: Product Management – Decisions, Development

& Lifecycle

1. What is Product Management?

Product Management involves planning, developing, launching, and managing a product

through its entire life cycle to meet customer needs and business goals.

It includes strategic decisions about:

• What products to offer

• How to develop them
• When and how to introduce them
• When to modify or remove them

2. What is a Product?

A product is anything that can be offered to the market to satisfy a want or need.
 Levels of Product

1. Core Product – Basic benefit (e.g., communication in a phone)

2. Actual Product – Design, brand, quality, features (e.g., iPhone)
3. Augmented Product – Extra services (warranty, support)

3. Types of Consumer Products

Type Description Examples

Convenience Low price, frequently bought Soap, toothpaste
Shopping Compared on quality/price Shoes, electronics
Specialty Unique features, brand preference Rolex watch
Unsought Not actively sought by customers Insurance, funeral services

4. Product Line and Product Mix

Term Description
Product Line Group of related products
Product Mix Total products company offers

Product mix dimensions:

• Width – Number of product lines

• Length – Total products
• Depth – Variants per product
• Consistency – Similarity among products

5. Product Decisions (Product Strategies)

A. Product Attributes

• Quality
• Features
• Design
• Style

B. Branding Decisions

• Brand name, brand positioning, brand sponsorship (e.g., private label, licensed
brands)
 C. Packaging Decisions

• Functionality, protection, branding, visual appeal

D. Labeling

• Information, legal compliance, promotional use

E. Product Support Services

• Customer service, installation, warranties

6. New Product Development (NPD)

Creating a new product from idea to market launch.

Steps in NPD Process

1. Idea Generation – From customers, employees, R&D, competitors

2. Idea Screening – Filter good ideas from bad ones
3. Concept Development & Testing – Detailed version of the idea is tested
4. Business Analysis – Cost, sales, profit estimation
5. Product Development – Actual product creation
6. Test Marketing – Product is tested in real markets
7. Commercialization – Full-scale launch

7. Product Life Cycle (PLC)

The PLC shows how a product behaves over time in the market, from launch to withdrawal.

Stages of PLC

Stage Characteristics Strategies

Introduction High cost, low sales, slow growth Create awareness, heavy promotion
Growth Rapid sales growth, competitors enter Improve quality, expand market
Maturity Peak sales, intense competition Product differentiation, price offers
Decline Falling sales, product outdated Cut costs, discontinue or reposition

Not all products follow the same curve. Some may skip stages or stay longer in maturity.

8. Strategies for Each PLC Stage

Introduction

• High promotion cost

• Skimming or penetration pricing
• Limited product variety

Growth

• Improve product features

• Add new segments
• Enter new channels

Maturity

• Promote brand loyalty

• Offer discounts
• Modify packaging or features

Decline

• Drop unprofitable versions

• Focus on niche segments
• Plan exit or relaunch

9. Reasons for New Product Failure

• Poor market research

• Incorrect pricing
• Weak promotion
• Poor timing
• Lack of competitive advantage
• Product doesn’t meet customer need

10. Role of a Product Manager

• Define product vision

• Conduct market research
• Coordinate with R&D, sales, marketing
• Monitor product performance
• Plan lifecycle strategies

11. Real-Life Example

Example: Apple iPhone

• NPD: Developed with advanced features after market research

• PLC: Moves from introduction to maturity yearly with new models
• Branding: Strong brand identity, premium pricing
• Packaging: Sleek and minimalistic, boosts appeal

12. Summary Table

Topic Key Points

Product Levels Core, Actual, Augmented
Product Mix & Line Width, Length, Depth, Consistency
Product Decisions Branding, Packaging, Labeling
NPD Process 7-step development process
Product Life Cycle Introduction to Decline
Product Strategy per Stage Awareness to exit plans

Unit: Product Management – Brand and Branding

Strategy

1. What is a Brand?

A brand is a name, term, symbol, or design that identifies a seller's product and differentiates
it from others in the market.

Brand Definition: A brand is more than just a name or logo. It represents the total
experience that a customer has with a company, product, or service.

Components of a Brand:

• Brand Name – The part that can be spoken (e.g., Apple, Nike)
• Brand Mark – The symbol, design, or logo (e.g., Nike Swoosh)
• Brand Equity – The value derived from consumer perception, experience, and
recognition
• Brand Personality – The set of human characteristics associated with the brand (e.g.,
fun, reliable, innovative)

2. Importance of Branding
 • Differentiation: Helps distinguish products from competitors
• Loyalty: Builds customer trust and loyalty
• Premium Pricing: Strong brands can charge higher prices
• Recognition: Brands create visibility and awareness
• Emotional Connection: Brands can create an emotional connection with consumers

3. Types of Brands

Type Description Example

Product Brand Specific to a product Coca-Cola, iPhone
Represents a company as a
Corporate Brand Apple, Samsung
whole
Generic Brand Unbranded, common product Sugar, Flour
Private Label Great Value (Walmart), Kirkland
Owned by a retailer
Brand (Costco)

4. Brand Equity

Brand Equity is the value of a brand based on consumer perceptions, experiences, and
associations.

Components of Brand Equity:

• Brand Awareness: Degree to which customers can recognize or recall the brand
• Brand Loyalty: Repeat purchase behavior, emotional attachment
• Perceived Quality: Consumer perception of the quality of the brand’s products
• Brand Associations: Mental connections with the brand, such as attributes, image, or
personality

Benefits of Strong Brand Equity:

• Increased sales and customer loyalty

• Ability to charge premium prices
• Competitive advantage

5. Branding Strategy

A Branding Strategy is a long-term plan to build a successful brand.

Branding Strategies:
 1. Brand Positioning: Define what your brand stands for in the consumer’s mind.
Example: Volvo – safety and reliability.
2. Brand Name Selection: Choose a name that reflects brand values and is easy to
remember.
Example: Nike (Greek goddess of victory).
3. Brand Sponsorship: The relationship between the product and its company or brand.
Types of brand sponsorship:
o Manufacturer’s Brand (e.g., Coca-Cola)
o Private Label (e.g., Great Value by Walmart)
o Co-Branding (e.g., Nike and Apple for fitness trackers)
4. Branding Policies: Guidelines to ensure consistent branding across all channels and
touchpoints.

6. Types of Branding Strategies

Strategy Description Example

Individual
Each product has a unique brand Unilever: Dove, Axe
Branding
Family Virgin Group: Virgin
Use the same brand name for all products
Branding Mobile, Virgin Airlines
Extend existing brand name to new product Coca-Cola: Diet Coke, Coke
Line Extension
categories Zero
Brand Use a well-known brand to launch new
Apple: iPhone, iPad, Mac
Extension products in unrelated categories
Two or more brands collaborate to promote a Nike and Apple (fitness
Co-Branding
product tracker)

7. Brand Positioning Strategies

Brand positioning is the space a brand occupies in the minds of consumers relative to
competitors.

Positioning Strategies:

1. By Product Attributes or Benefits: Focus on a key feature or benefit

Example: Head & Shoulders – “anti-dandruff shampoo.”
2. By Use or Application: Position based on the product's usage
Example: Gatorade – for athletes.
3. By Product Class: Differentiate from competing product categories
Example: Rolex – luxury watch, not just a timepiece.
4. By Product User: Position for a specific target group
Example: Dove – for real women, not just models.
5. By Competitor: Position against a direct competitor
Example: Pepsi vs Coca-Cola.
 8. Brand Development Strategies

Brand development involves creating new brands or expanding the reach of an existing
brand.

Brand Extension:

• Leveraging an existing brand to enter new product categories or markets.

• Example: Apple extending its brand from computers to phones, tablets, and
wearables.

Line Extension:

• Introducing additional variations of the same product.

• Example: Coca-Cola introducing Diet Coke or Coca-Cola Zero.

Multibranding:

• Offering multiple brands within the same category to capture different market
segments.
• Example: Marriott offers Ritz-Carlton, Courtyard, and Fairfield Inn.

New Brands:

• Launching entirely new brands in different categories or markets.

• Example: Virgin Group launching Virgin Galactic.

9. Managing a Brand Portfolio

A brand portfolio is a collection of all the brands owned by a company.

Types of Brand Portfolio Strategies:

1. House of Brands: Company owns multiple brands that are independent of each other
o Example: Procter & Gamble (Tide, Pampers, Gillette)
2. Branded House: The company’s brand is the main identity, and sub-brands support it
o Example: Virgin (Virgin Airlines, Virgin Mobile)

Brand Hierarchy:

A brand hierarchy defines the levels of brand names used within a company’s portfolio
(e.g., corporate brand, product line, individual product).
 10. Brand Repositioning

Brand repositioning involves changing the position of the brand in the market or customer’s
mind.

Reasons for Repositioning:

• Shifts in consumer preferences

• Increased competition
• Poor brand performance
• Expansion into new markets

Methods of Repositioning:

• Changing product features

• Changing target market
• Changing brand associations or personality

11. Brand Loyalty

Brand Loyalty refers to the degree of attachment customers have to a particular brand,
resulting in repeat purchases.

Levels of Brand Loyalty:

1. Brand Recognition: Customers recognize the brand but may not prefer it.
2. Brand Preference: Customers prefer the brand over others but may choose
alternatives.
3. Brand Insistence: Customers will only buy the brand and will not consider
substitutes.

Benefits of Brand Loyalty:

• Increased customer lifetime value

• Reduced marketing costs
• Strong word-of-mouth promotion

12. Brand Challenges

• Brand Dilution: When a brand loses its strength due to overextension or poor
management.
• Branding Confusion: Occurs when customers are unsure of the brand’s value or
meaning.
• Global Branding: Adapting a brand’s message for different international markets.
 13. Real-Life Example of Branding Strategy

Example: Nike

• Brand Personality: Empowerment, innovation, and performance.

• Positioning: "Just Do It" – an empowering slogan that resonates with athletes and
fitness enthusiasts.
• Brand Loyalty: Strong emotional connection with athletes and fitness-conscious
individuals.

14. Summary Table

Concept Key Points

Brand Definition Name, symbol, and design to differentiate products
Brand Equity Value from consumer perceptions and associations
Branding Strategies Positioning, brand extensions, co-branding
Brand Development Strategies Brand extension, line extension, multibranding
Brand Loyalty Degree of customer attachment to the brand

Unit: Pricing

1. What is Pricing?

Pricing is the process of determining the monetary value that will be exchanged for a
product or service. It is one of the 4 P’s (Product, Price, Place, and Promotion) of marketing.

Pricing Objectives:

• Maximize Profit: Charge the highest price that customers are willing to pay.
• Market Share: Set a price that allows the company to increase its market share.
• Survival: Lower prices to continue operating in a competitive environment.
• Status Quo: Maintain existing prices to avoid price wars.

2. Importance of Pricing

• Revenue Generation: Price directly impacts the revenue of the company.

• Competitive Advantage: Price can be used to compete in the market.
 • Brand Positioning: Pricing helps in positioning the product in the market as
premium, economy, or value-for-money.
• Profitability: The right price maximizes profit, helping the business to thrive.

3. Factors Affecting Pricing Decisions

Internal Factors:

1. Company Objectives: Profit maximization, market share, etc.

2. Marketing Strategy: Pricing aligns with overall marketing goals (e.g., penetration
pricing, skimming pricing).
3. Cost Structure: Fixed and variable costs need to be covered through pricing.

External Factors:

1. Demand Conditions: Elasticity of demand and consumer behavior.

2. Competition: Prices set in response to competitor offerings.
3. Market Conditions: Economic conditions, government regulations, etc.
4. Customer Perception: The value that customers associate with the product.

4. Types of Pricing

Based on Cost:

1. Cost-Plus Pricing: Adding a fixed markup to the cost of the product.

o Formula: Price = Cost + Markup
o Example: If a product costs $100 to produce and a company adds a 30%
markup, the selling price is $130.
2. Target Return Pricing: Setting a price to achieve a specific return on investment
(ROI).
o Formula: Price = (Cost + Desired Return on Investment) / Number of Units.

Based on Demand:

1. Penetration Pricing: Setting a low initial price to enter a competitive market and
gain market share.
o Example: Netflix offering discounted plans to attract customers.
2. Price Skimming: Setting a high price initially and then gradually lowering it over
time.
o Example: Apple’s new iPhones are launched at a premium price, which drops
after a few months.

Based on Competition:
1. Competitive Pricing: Setting the price based on competitors' prices for similar
products.
o Example: Gas stations often have prices that are similar to nearby
competitors.

Based on Customer Value:

1. Value-Based Pricing: Setting a price based on the perceived value of the product to
the customer, rather than the cost of production.
o Example: Luxury brands such as Rolex set high prices based on their
perceived prestige and quality.

5. Pricing Strategies

Market Penetration Pricing:

• Set a low price to enter a competitive market and increase market share.
• Suitable for products with high potential demand.
• Works well in price-sensitive markets.
• Example: Fast-food chains offering value meals.

Price Skimming:

• Set a high initial price, then gradually lower it over time.

• Often used for new, innovative products.
• Helps recover high development costs quickly.
• Example: Consumer electronics, like smartphones or gaming consoles.

Psychological Pricing:

• Pricing designed to have a psychological impact, making the price seem lower.
• Example: $9.99 instead of $10 or "Buy One, Get One Free" offers.

Prestige Pricing:

• Setting a high price to signal luxury and quality.

• Targets consumers who associate high prices with superior quality.
• Example: Rolex watches, Ferrari cars.

Odd-Even Pricing:

• Setting prices that are just below a round number, such as $99.99 instead of $100.
• Creates the illusion of a better deal.

Bundling Pricing:
 • Offering multiple products or services together at a reduced price.
• Example: Fast-food chains offering combo meals or software packages.

Geographical Pricing:

• Different prices are charged in different geographic locations, based on factors like
shipping costs, demand, and economic conditions.
• Example: International pricing for the same product may vary in different countries.

6. Pricing Tactics

Discount Pricing:

• Reducing the price temporarily to attract customers.

• Types of Discounts:
1. Seasonal Discounts: Price reductions for off-season products.
2. Cash Discounts: Offered to customers for early payments.
3. Promotional Discounts: Temporary reductions for special promotions.
4. Quantity Discounts: Price reductions for purchasing in bulk.

Dynamic Pricing:

• Adjusting prices based on demand and other factors, commonly used in industries like
airlines or hotels.
• Example: Prices for flights change based on the time of booking, demand, and
season.

Penetration Pricing:

• Introducing a new product at a low price to quickly attract a large number of

customers.
• Example: Streaming services like Hulu, Disney+ offer low introductory prices to
attract users.

7. Pricing Policies

Pricing policies define the approach a company uses to set prices in various conditions.

Price Discrimination:

• Charging different prices for the same product or service to different customers.
• Types:
1. First-degree: Charging different prices based on individual preferences (e.g.,
auction prices).
 2. Second-degree: Offering lower prices based on purchase quantity (e.g.,
wholesale).
3. Third-degree: Charging different prices to different market segments (e.g.,
student discounts).

Price Fixing:

• A situation where competing companies agree to set a price for a product or service,
which is illegal in many countries (antitrust laws).

8. Psychological Factors in Pricing

• Price-Quality Inference: Consumers often assume that higher-priced products are of

better quality.
• Reference Pricing: Consumers compare the price of a product to an established
reference price (e.g., the regular price or a competitor’s price).
• Price-Ending Effects: Prices ending in .99 or .95 are perceived as lower than those
ending in a whole number.

9. Pricing in the Global Market

International Pricing Factors:

1. Currency Fluctuations: Changes in exchange rates can affect product prices in

foreign markets.
2. Tariffs and Taxes: Import duties and taxes impact the final price of products sold
internationally.
3. Local Competition: Prices may need to be adjusted to remain competitive in foreign
markets.

Global Pricing Strategies:

1. Standard Pricing: Setting a single price for all international markets.

2. Localized Pricing: Adjusting prices based on the specific economic conditions of
each market.
3. Market-Oriented Pricing: Setting prices based on the market demand in each
country.

10. Ethical Issues in Pricing

1. Price Gouging: Setting excessively high prices during emergencies or shortages (e.g.,
after natural disasters).
 2. Deceptive Pricing: Misleading customers by advertising prices that are not actually
available.
3. Predatory Pricing: Setting very low prices with the intent to drive competitors out of
the market.

11. Summary Table of Pricing Strategies

Strategy Description Example

Penetration Pricing Low initial price to capture market share Netflix, Spotify
Price Skimming High initial price, gradually reduced iPhone launch
Psychological Prices designed to appeal to consumer
$9.99 instead of $10
Pricing psychology
Prestige Pricing High price to signal luxury and quality Rolex, Ferrari
Offering multiple products together at a
Bundling Pricing Fast-food combo meals
lower price
Geographical International pricing of
Different prices in different regions
Pricing products

12. Conclusion

Pricing is a crucial element of marketing strategy, directly influencing revenue, competition,

and market perception. Marketers must carefully consider both internal factors (cost,
objectives) and external factors (competition, market conditions) when setting prices. They
should also understand customer psychology to develop effective pricing strategies that align
with their target market’s expectations.

Unit: Distribution Management

1. What is Distribution Management?

Distribution management is the process of managing the flow of goods and services from
the manufacturer to the end customer. It involves ensuring that the product reaches the
consumer in the right condition, at the right time, and at the right price.

Key Objectives of Distribution Management:

• Ensure efficient movement of products from manufacturers to consumers.

• Minimize distribution costs while maximizing effectiveness.
• Ensure customer satisfaction through timely and reliable delivery.
• Develop a distribution network that is flexible and responsive to market demands.
 2. Distribution Channels

A distribution channel is a set of interdependent organizations or intermediaries that work

together to make a product or service available to consumers.

Types of Distribution Channels:

1. Direct Channels:
o Manufacturer to Consumer: The producer sells directly to the final
consumer without any intermediaries.
o Example: Direct sales via online stores like Apple or Nike.
2. Indirect Channels:
o Manufacturer to Wholesaler to Retailer to Consumer: The product passes
through one or more intermediaries before reaching the final consumer.
o Example: Most consumer goods like food, clothing, and electronics.
3. Dual Distribution:
o The product reaches the consumer through both direct and indirect channels
simultaneously.
o Example: A company may sell products directly online and through third-
party retail stores.

Channel Members:

• Producers: The makers of the product.

• Wholesalers: Intermediaries that buy products in bulk from manufacturers and sell
them in smaller quantities to retailers.
• Retailers: Sell products to the final consumer.
• Agents/Brokers: Intermediaries who facilitate transactions between manufacturers
and wholesalers or retailers.

3. Types of Distribution Systems

Intensive Distribution:

• The goal is to make the product available in as many locations as possible.

• Suitable for low-cost, frequently purchased products.
• Example: Coca-Cola, toothpaste.

Selective Distribution:

• Products are available in selected locations or outlets.

• Suitable for products that require more care or have special features.
• Example: Electronics, branded clothing.

Exclusive Distribution:
 • Products are available in only one or a few outlets in a specific geographic area.
• Suitable for luxury or high-end products.
• Example: Luxury cars, designer clothing.

4. Factors Affecting Distribution Decisions

1. Product Factors:

• Type of Product: Perishable products require faster distribution systems, while

durable goods may have longer distribution cycles.
• Product Size & Weight: Large or bulky products require different distribution
channels.
• Value of Product: Expensive products may be distributed through exclusive
channels, while low-cost products require intensive distribution.

2. Market Factors:

• Geographical Spread: If the market is spread out, companies may use multiple
distribution channels.
• Consumer Behavior: Consumers’ buying habits will influence the type of
distribution.
• Market Size: Larger markets may require more intensive distribution strategies.

3. Company Factors:

• Financial Resources: A company’s ability to invest in a distribution network

influences its choice of channels.
• Channel Control: Companies may choose distribution systems where they can
maintain control over the product and the brand image.

4. Environmental Factors:

• Government Regulations: Laws and regulations may affect distribution strategies

(e.g., restrictions on foreign imports).
• Technology: Advances in logistics technology influence the efficiency and scope of
distribution networks.

5. Distribution Management Decisions

Channel Design Decisions:

• Deciding on the type of distribution channels to be used and how they should be
structured.
• Factors to consider:
o The number of intermediaries to be included in the channel.
 o The geographical coverage required.
o The type of product and target market.

Channel Organization Decisions:

• Deciding how the channel members will be organized to work together effectively.
• Includes decisions on:
o Vertical Marketing System (VMS): All levels of the channel work together
under a unified strategy.
o Horizontal Marketing System (HMS): Two or more companies at the same
level of the distribution channel collaborate.

Channel Management Decisions:

• Motivation of Channel Members: Encouraging distributors and retailers to push the

product.
• Training: Ensuring that all channel members are knowledgeable about the product.
• Evaluation and Control: Regularly monitoring the performance of channel members
to ensure they are meeting set objectives.

6. Distribution Logistics

Logistics refers to the planning, implementation, and control of the physical movement of
goods and services from the point of origin to the end consumer.

Components of Distribution Logistics:

1. Transportation: Deciding on the mode of transport (e.g., road, rail, air, sea) that best
suits the product and market.
2. Warehousing: The storage of products until they are needed for sale. Effective
warehousing can lower costs and improve service.
3. Inventory Management: Managing the stock levels to ensure product availability
without overstocking or understocking.
4. Order Processing: Ensuring that customer orders are received, processed, and
shipped promptly.
5. Packaging: Protecting products during transportation and handling while making
them attractive to consumers.

7. Channel Conflict

Channel conflict occurs when there is a disagreement or clash between different members of
the distribution channel. There are two types:

1. Vertical Conflict: Disagreements between different levels of the same channel (e.g.,
manufacturer vs. retailer).
 o Cause: Price setting, delivery schedules, or profit margins.
2. Horizontal Conflict: Disagreements between members at the same level of the
channel (e.g., two retailers competing for the same product).
o Cause: Competition, territorial disputes, or pricing issues.

Managing Channel Conflict:

• Clear communication between all channel members.

• Cooperative pricing and marketing efforts.
• Conflict resolution strategies such as negotiation or legal agreements.

8. Distribution Channel Trends

• E-commerce: Online platforms are changing traditional distribution networks.

• Direct-to-Consumer (DTC): Brands like Warby Parker and Casper are bypassing
traditional retailers to sell directly to customers.
• Omnichannel Distribution: Integrating both online and offline channels to create a
seamless customer experience.
• Sustainability: Companies are focusing on eco-friendly distribution methods and
packaging.

9. Global Distribution Management

Expanding into international markets introduces new challenges and opportunities for
distribution management:

Challenges:

• Cultural Differences: Adapting distribution strategies to fit different consumer

behaviors in various countries.
• Regulations and Tariffs: Complying with local laws, taxes, and tariffs in
international markets.
• Logistical Complexity: Managing the movement of products across borders can
involve complex logistics.

Opportunities:

• Access to new markets.

• Reduced dependence on local markets.
• Global partnerships and alliances for more efficient distribution.

10. Summary of Distribution Channels

 Type of
Description Example
Distribution
Intensive
Available in as many outlets as possible Coca-Cola, snacks
Distribution
Selective
Available in selected outlets only Electronics, fashion brands
Distribution
Exclusive Luxury cars, high-end
Limited to one or a few outlets per region
Distribution watches
Direct Channel Manufacturer sells directly to consumer Apple, Amazon
Product passes through intermediaries Most consumer goods like
Indirect Channel
(wholesalers, etc.) groceries

11. Conclusion

Effective distribution management is key to delivering products to consumers efficiently and

cost-effectively. A good distribution system improves product availability, reduces costs, and
enhances customer satisfaction. Companies need to carefully design their distribution
channels and manage logistics to meet market demands, both locally and globally.

Unit: Promotion Management - Managing Non-

Personal Communication

1. What is Promotion Management?

Promotion management is the process of managing various promotional activities to

communicate with customers and persuade them to purchase products or services. The goal is
to inform, persuade, and remind customers about the brand, product, or service.

Non-personal communication refers to communication channels that do not involve face-to-

face interaction between the company and consumers. Instead, they involve mass
communication methods, such as advertising, public relations, sales promotions, and direct
marketing.

2. Types of Promotion

Promotions can be divided into two major types:

1. Personal Communication:
o Direct interaction between the company and the consumer.
o Examples: Sales calls, face-to-face meetings.
2. Non-Personal Communication:
 o Mass communication where there is no direct contact between the sender and
receiver.
o Examples: Advertising, public relations, direct marketing.

This unit focuses on non-personal communication.

3. Elements of Non-Personal Communication

Non-personal communication generally includes the following tools:

1. Advertising:
o Definition: Paid, non-personal communication aimed at informing or
persuading a target audience to buy a product or service.
o Media Types: Print (newspapers, magazines), Broadcast (TV, radio), Online
(social media, websites), Out-of-home (billboards, transit ads).
2. Sales Promotion:
o Definition: Short-term incentives or activities designed to encourage the
purchase or sale of a product or service.
o Types of Sales Promotions:
▪ Consumer promotions: Coupons, contests, discounts, rebates.
▪ Trade promotions: Discounts, trade shows, dealer incentives.
3. Public Relations (PR):
o Definition: Activities designed to create a positive image of the company and
its products in the eyes of the public.
o Tools: Press releases, media coverage, sponsorships, community relations.
4. Direct Marketing:
o Definition: Direct communication with consumers to generate a response or
transaction.
o Methods: Direct mail, email marketing, telemarketing, catalogs.

4. Advertising in Non-Personal Communication

Advertising is a key tool in non-personal communication and is a paid form of

communication that attempts to persuade or inform the target audience about a product or
service.

Key Decisions in Advertising:

1. Advertising Objectives:
o Informing: Used when the product is new or needs awareness.
o Persuading: Used for products that are already known but require
differentiation.
o Reminding: Used to keep the brand in consumers' minds after the purchase.
o Reinforcing: Used to assure consumers that they made the right purchase
decision.
 2. Advertising Budget:
o The budget for advertising is usually determined by factors such as marketing
objectives, the target audience, and available resources.
o Methods of setting budgets:
▪ Percentage of Sales: Allocating a fixed percentage of sales revenue.
▪ Objective and Task: Setting a budget based on specific promotional
objectives and tasks.
▪ Competitive Parity: Matching competitors' advertising budgets.
3. Advertising Message:
o Message Strategy: The core message that the company wants to
communicate. This includes the product's unique selling proposition (USP)
and the desired emotional appeal.
o Message Execution: The way the message is presented to the audience. This
involves the tone, style, and medium of delivery.
4. Media Selection:
o Choosing the right media channels based on the target audience, budget, and
message goals.
o Media Options:
▪ Television: Wide reach, visual and auditory appeal.
▪ Radio: Cost-effective, good for reaching specific demographics.
▪ Digital Media: Social media, search engines, online ads.
▪ Print Media: Newspapers, magazines, billboards.
5. Media Scheduling:
o Deciding when and how often the advertisements will appear. Common
scheduling strategies include:
▪ Continuous: Ads run consistently throughout the year.
▪ Flighting: Ads run in intervals.
▪ Pulsing: A combination of continuous and flighting, with increased
intensity during certain periods.

5. Sales Promotion in Non-Personal Communication

Sales promotion aims to encourage immediate action from consumers, such as purchasing a
product or visiting a store. It involves offering incentives that add value to the product.

Types of Sales Promotion:

1. Consumer-Oriented Sales Promotion:

o Coupons: Discounts or offers provided through vouchers.
o Samples: Free trials or product samples given to potential customers.
o Contests & Sweepstakes: Competitions that offer prizes to encourage
participation.
o Rebates: Partial refunds on the purchase price.
o Loyalty Programs: Reward systems for repeat customers.
2. Trade-Oriented Sales Promotion:
o Discounts: Price reductions offered to intermediaries or resellers.
o Trade Shows: Events where companies exhibit their products to potential
buyers.
 o Dealer Incentives: Financial rewards to dealers for promoting the product.

Sales Promotion Techniques:

• Point-of-Purchase (POP) displays to attract attention and encourage impulse buying.

• Bundling: Offering products together at a discounted price.

6. Public Relations (PR) in Non-Personal Communication

Public Relations is about creating a positive public image and managing relationships with
the public, investors, and media.

PR Tools:

1. Press Releases: Written statements shared with the media to inform the public about
company news.
2. Media Relations: Working with journalists and media outlets to secure positive press
coverage.
3. Sponsorships: Associating the brand with events or causes to enhance image.
4. Community Relations: Engaging in social responsibility initiatives and charitable
activities.
5. Crisis Management: Addressing negative situations to protect the company’s
reputation.

PR efforts are often less about direct sales and more about building brand awareness,
credibility, and trust.

7. Direct Marketing in Non-Personal Communication

Direct marketing involves communicating directly with potential customers to generate a

response or transaction.

Direct Marketing Techniques:

1. Direct Mail: Sending promotional material like brochures, catalogs, or offers directly
to consumers' mailboxes.
2. Email Marketing: Sending targeted promotional messages through email.
3. Telemarketing: Contacting potential customers by phone to sell products or services.
4. Online Marketing: Using digital channels like social media, search engines, and
websites for direct communication with customers.
5. Catalogs: Printed or digital lists of products sent to consumers.

Direct marketing is highly measurable and allows for targeted communication, often with a
clear call to action.
 8. Managing Non-Personal Communication Effectively

Effective management of non-personal communication involves:

1. Integrating all Promotional Tools: Coordinating advertising, sales promotion,

public relations, and direct marketing to create a unified brand message.
2. Audience Segmentation: Identifying different segments of the target market and
tailoring messages to their needs and preferences.
3. Consistency: Ensuring that the brand message remains consistent across all channels.
4. Monitoring & Evaluation: Regularly measuring the effectiveness of promotional
activities through metrics such as sales, brand awareness, and consumer feedback.

9. Conclusion

Non-personal communication plays a crucial role in shaping the public’s perception of a

brand and influencing purchasing decisions. By using various tools like advertising, sales
promotions, public relations, and direct marketing, companies can create strong connections
with their target audiences. A well-managed promotional strategy can build brand awareness,
increase sales, and enhance customer loyalty.

Unit: Personal Communication Channels

1. What is Personal Communication?

Personal communication refers to the direct, face-to-face interaction between a company (or
its representatives) and the target audience. It involves interpersonal communication where a
person communicates with another person or a group of people, and this interaction allows
for immediate feedback.

Personal communication is effective in building personal relationships, fostering trust, and

having a direct influence on purchasing decisions. It is often more impactful than non-
personal communication because it is more interactive and personalized.

2. Types of Personal Communication Channels

Personal communication channels are primarily divided into two categories:

1. Personal Selling
2. Word of Mouth Communication
Let's dive into each of these:

3. Personal Selling

Personal selling is a direct form of communication where a sales representative interacts

with potential customers to persuade them to make a purchase. This form of communication
is personalized, and it allows the salesperson to address individual needs, concerns, and
questions.

Key Elements of Personal Selling:

1. Salesperson's Role:
o The salesperson serves as the communicator between the company and the
consumer. They provide detailed information, address concerns, and help
close sales.
o Salespeople are essential in industries where products require explanation,
customization, or involve a high level of service.
2. Process of Personal Selling:
The personal selling process usually follows several key steps:
o Prospecting: Identifying potential customers who may be interested in the
product.
o Pre-approach: Gathering information about the prospects to tailor the sales
pitch.
o Approach: Making initial contact with the prospect.
o Presentation: Explaining the features, benefits, and value of the product.
o Handling Objections: Addressing any concerns or objections that the
prospect may have.
o Closing the Sale: Persuading the prospect to make the purchase.
o Follow-up: Ensuring customer satisfaction and building long-term
relationships.
3. Personal Selling Methods:
o Retail Selling: Salespeople in retail stores interact with customers to help
them find the products they need.
o B2B Selling: Personal selling in the business-to-business context involves
more complex products and services that require detailed explanations and
negotiations.
o Telemarketing: Using the telephone to sell products directly to consumers.
4. Advantages of Personal Selling:
o Allows for immediate feedback and addressing customer concerns.
o Personalized, one-on-one communication builds relationships.
o Flexible and adaptable to the needs of the customer.
o Effective for complex or high-value products.
5. Disadvantages of Personal Selling:
o High cost due to the need for a sales force.
o Limited reach compared to mass communication channels.
o Time-consuming and may require long periods to close sales.
 4. Word of Mouth Communication

Word of mouth (WOM) communication refers to the informal exchange of information

between people regarding products, services, or brands. It happens when customers share
their experiences, opinions, and recommendations with friends, family, or even strangers.

Word of mouth can be either positive (e.g., recommending a product to a friend) or negative
(e.g., warning someone about a bad product experience).

Importance of Word of Mouth Communication:

1. Trust and Credibility:

o WOM is highly trusted because people often believe the recommendations or
warnings of friends, family, or colleagues more than advertisements.
o Consumers trust personal experiences, making WOM a powerful tool for
influencing purchase decisions.
2. Types of Word of Mouth:
o Organic WOM: Natural sharing of opinions without any external
encouragement (e.g., discussing products during a casual conversation).
o Amplified WOM: Encouraged or stimulated by the company through
marketing efforts (e.g., referral programs, social media sharing).
3. Role of Social Media in WOM:
o With the rise of social media, WOM communication has expanded
exponentially. Consumers now share their experiences online, which can go
viral and spread across large audiences.
o Reviews and ratings on platforms like Amazon, Yelp, and Google are key
forms of amplified WOM.
o Companies can use social media influencers to enhance WOM by having
trusted individuals promote their products.
4. Factors Influencing Word of Mouth:
o Product Quality: High-quality products or services are more likely to
generate positive WOM.
o Customer Service: A great customer service experience can result in positive
WOM.
o Emotional Connection: If a consumer feels emotionally connected to a
product or brand, they are more likely to talk about it.
o Brand Reputation: Established brands with a good reputation naturally
generate more WOM.
5. Advantages of Word of Mouth:
o Highly credible and persuasive due to trust in personal recommendations.
o Low cost as it occurs organically.
o Influences a large number of potential customers without the need for mass
advertising.
6. Disadvantages of Word of Mouth:
o Negative WOM can harm a company’s reputation quickly and may spread
faster than positive feedback.
o It is difficult to control or manage WOM since it is based on individual
opinions.
o WOM depends on the number of people in a person’s network; the more
influential the network, the greater the impact.
 5. Integrating Personal Communication with Other Marketing Strategies

While personal communication is a powerful tool in influencing consumer behavior, it should

be integrated effectively with other marketing strategies to create a unified approach.

Integrating Personal Selling with Other Marketing Mix Elements:

• Advertising: Personal selling can be used to follow up on advertising campaigns,

answer questions, and close sales.
• Sales Promotion: Salespeople can highlight promotional offers or incentives to push
sales.
• Public Relations: Salespeople can engage in PR activities to build relationships and
credibility in the marketplace.

Integrated Marketing Communications (IMC):

• IMC is about creating a consistent brand message across all communication channels,
including personal communication, advertising, and public relations.
• By combining personal selling with mass media channels, companies can reinforce
their messages and create a more effective overall marketing strategy.

6. Personal Communication in the Digital Age

In today’s digital world, personal communication channels are not limited to face-to-face
interactions. Many personal communication tools now operate through digital platforms.

1. Social Media: Companies can use social media platforms like Facebook, Instagram,
and LinkedIn for direct communication with consumers, offering a more personal
touch.
2. Live Chat: Many websites now offer live chat support, allowing customers to have
direct, personalized conversations with representatives.
3. Influencer Marketing: Partnering with influencers allows brands to communicate
directly with followers in a personal and relatable way.

7. Conclusion

Personal communication channels, such as personal selling and word of mouth, play a vital
role in building relationships with customers and influencing their purchasing decisions.
These channels offer the advantage of immediate feedback and a more personalized
experience, which can lead to stronger customer loyalty and higher conversion rates.

Effective management of personal communication, along with integration with other

marketing strategies, can enhance the overall marketing efforts of a company.