Unit 4 – Marketing dimensions

4.1 Rural marketing- concept, prospects, challenges, strategies for effective rural marketing
4.2 Relationship marketing- meaning, importance
4.3 E-marketing- meaning, types, advantages
4.4 Social media marketing- concept, platforms for social media marketing
4.5 Viral Marketing- concept, advantages
4.6 M-Commerce- meaning, advantages, limitations
4.7 Green marketing- concept, importance, challenges
4.8 Network marketing- concept, advantages
4.9 Marketing ethics- concept, importance, unethical practices in marketing
4.10 Case Studies

Rural Marketing

Rural marketing is a systematic process of marketing goods and services to the rural people
in rural areas. It is a subcategory of marketing itself that aims to promote products in rural
areas. This is done in areas where most people are engaged in agriculture and other related
activities. Rural marketing is a way to reach out to the mixed rural population, including
farmers, artisans, small business owners, and other rural consumers who usually have a very
low income.
According to the National Sample Survey Organization (NSSO), rural marketing is buying,
selling, and promoting goods and services in rural areas. Rural marketing is distinct from
urban marketing as it has to deal with different customers whose needs are also different.
Also, their preferences and buying behaviour are different. Rural marketing is a complex
process in which rural consumers have unique socio-economic and cultural factors affecting
their buying behaviour.
Definition of Rural Marketing by Philip Kotler: Philip Kotler, the father of modern marketing,
has defined rural marketing as "the process of planning, executing, and promoting the
distribution of agricultural inputs, produce, and rural products and services to create an
exchange that satisfies individual and corporate objectives."
Rural marketing is creating, promoting, and distributing goods and services to rural
consumers, ideally in a rural setup. Rural marketing is a crucial aspect of modern marketing
as well. It represents a significant portion of our economy. India's rural market is vast and
diverse, with over 70% of the residents living in rural areas today. Hence, rural marketing has
become a vital part of marketing strategies for firms.
Rural Marketing Examples
The following are some examples of thriving rural marketing campaigns in India.
 ITC e-Choupal: ITC's e-Choupal initiative is a formative example of a successful rural
marketing strategy. It is a web-based platform that provides farmers with details on
weather, market prices, and best agricultural practices, which helps them in proper
planning. Through e-Choupal, ITC also provides farmers with agricultural inputs like
seeds, fertilizers, and pesticides, which helps the agricultural sector grow.
 Amul: Amul is another example of successful rural marketing. Amul's "utterly butterly
delicious" campaign was successful in rural areas. Amul has created cheap and
localized products, viewing the needs of the rural audience.

Features of Indian Rural Market

1. Huge and scattered market (Huge market- prospect; scattered-challenge) - The rural
market is vast as more than two-thirds of the Indian population lives in rural areas. According
to the 2011 census, 833 million people forming 68.84 per cent of India’s population live in
rural areas. The rate of increase in rural population is also greater than that of urban
population. The rural population is scattered in over 650,000 villages. Moreover, it is scattered
over a wide geographical area.
2. Agriculture dependant (Challenge) - Agriculture is the main occupation of the rural
people. It accounts for nearly 60% of the rural income. Since agriculture is a seasonal
occupation, the demand pattern also follows a seasonal route. For example, the demand for
fertilizers is high during the start of Kharif and Rabi seasons. Similarly, the demand for
consumables and durables is high during the harvesting season. peak crop harvesting and
marketing seasons.
3. Diverse nature (Challenge) - The rural consumers differ from each other in terms of
religion, language, class, caste and other social and cultural factors. Further, buyers in rural
areas are of different types; some are simple, while some are sophisticated; some are extreme
rich, while some are extreme poor; some are highly educated, while some are complete
illiterate; some are dynamic and modern, while some are very rigid and orthodox; some
believe in quality and status, while some believe in availability and price.
4. Low standard of living (Challenge) - The standard of living of rural areas is low. This is
because of low literacy, low per capital income, low savings and social backwardness. An
average rural consumer has much lower income than his urban counterpart. This makes the
rural consumer more price sensitive than the urban counterpart. However, purchasing power
of the rural people is on rise.
5. Traditional outlook (Challenge) - The outlook of rural consumers is traditional. They
value old values and customs. Factors such as backwardness, limited exposure to the outside
world, illiteracy, low income, etc. are responsible for such an outlook.
They do not prefer changes. However, there has been a gradual change in demand pattern and
rural people have started demanding branded products.
6. Infrastructure facilities (Poor infrastructure-challenge; improvement-prospect) -
The Infrastructure facilities like roads, warehouses, communication system, financial facilities
are inadequate in rural areas. This makes physical distribution of products costly. However,
there is development of infrastructure facilities such as construction of roads, communication
network, rural electrification and public service projects in rural India, which has increased
the scope of rural marketing.
7. Market growth - The rural market is growing steadily over the years. The demand for many
new products is increasing in rural areas. Some of the products that are already established
in rural markets include textiles, bathing soaps, washing soaps and detergents, cooking
utensils, toothpastes, toothpowders, razor blades, packaged tea, TVs, fertilizers, pesticides,
tractors, harvesters, pump sets, tractors, bicycles, motor cycles, scooters etc. It is also seen
that in many products, the rate of growth is higher in rural markets as compared to urban
markets; e.g. packaged tea, detergent powders, washing soaps, detergent cakes etc.
8. Adjustments in marketing mix (Prospect) - The urban products cannot be dumped on
rural population. The rural marketing environment is different from that of an urban one.
Separate sets of products are designed for rural consumers to suit the rural demands. The
marketing mix elements have to be adjusted according to the requirements of the rural
consumers.
9. 4 A's of rural marketing mix - Marketing in Rural India is different than marketing in
Urban India, which makes companies think over the traditional marketing mix. Hence, The
4A's model has been developed for rural markets. The 4 A's- Affordability, Availability,
Awareness and Acceptability presents marketing mix elements from the consumers'
perspective:
i) Affordability: The per capital income of rural people is low. Hence products designed
for rural markets must keep affordability in mind. The affordability element does not
mean cheaper products, but designing products which match the needs of rural
consumers and provides value as perceived by them. In other words affordability here
means that it should be within their purchasing capacity. Many companies make
products available in smaller packs. FMCG companies came up with sachets and small
packs. Some product such as consumer durables can be made affordable by making
available the loan facility by having alliance with banks.
ii) Availability: Given the poor infrastructure, it is a great challenge to regularly reach
products to the rural markets. Marketer should plan to reach these markets on a regular
basis. They must make use of multiple supply chain models to reach to rural markets.
Some companies have adopted innovative distribution strategies to overcome this
problem. For instance, Hindustan Unilever's Shakti model and Colgate's bicycle
entrepreneurs to reach the interiors of rural markets. Trucks, auto rickshaws, cycle
rickshaws, camel carts are used in Rajasthan to deliver products to the rural market.
iii) Awareness: Creating awareness is yet another challenge in rural marketing.
Although access to mass media especially television is increasing in rural India, a large
part of rural India is yet less accessible to conventional advertising media. Hence along
with traditional media such as radio, television and outdoor, marketers must also use
 unconventional media for creating brand awareness. Wall paintings, road shows, folk
theatre etc. in the local language also play an important role in creating interest amongst
rural consumers. Elements like packaging, slogans, logo, colour of packaging etc. must
be designed according to the rural context. These must be highlighted prominently so
that consumers who can't read can recognise the product at the retail outlet.
iv) Acceptability: It is very important that rural consumers feel that the product is
designed as per their needs. Rural consumers prefer utility oriented products. Marketers
must also design products that are compatible with the infrastructure available in rural
areas. Coca-Cola provided low-cost ice boxes in the rural areas due to the lack of
electricity and refrigerators. It also provided a tin box for new outlets and thermocol box
for seasonal outlets. HDFC Standard LIFE topped private insurers by selling policies in
rural sector. The company tied up with non-governmental organizations and offered
reasonably-priced policies in the nature of group insurance covers.

Problems in Rural Marketing

1. Under developed people and underdeveloped markets: The impact of agricultural
technology is not felt uniformly throughout the country. Some districts in Punjab, Haryana
and the Western U.P. where the rural consumers are somewhat comparable to their urban
counter part; but there are large areas and grown of people who have repaired beyond the
technological breakthrough. In addition, the farmers with small agricultural land holding are
also unable to take advantage of the new technology.

2. Lack of power physical communication facilities: Nearly 50 percent of the villages in

India do not have all weather roads, physical communication to the villages is highly
expensive. Especially during the monsoon 4 months these villages become complete
inaccessible.

3. Inadequate media coverage for rural-communication: A large number of rural families

own radio and TV sets, there are also community radio and TV sets. These have been used to
diffuse agricultural technology to rural areas. However, the coverage relating to marketing is
inadequate.

4. Many languages and dialects: The number of languages and dialects vary from state to
state and region to region. This type of distribution of population warrants appropriate
strategies decide the extent of coverage of rural market.

5. Other problems of rural marketing are natural Calamities:

Of draught or examine rain, epidemics, primitive methods of cultivation, lack of printer
storage facilities, transportation problem and inadequate market intelligence, including long
chain of intermediaries between cultivator and farmer and wholesaler and retailers.

6. Vast cultural diversity - There are also problems of extending marketing efforts to small
villages with 200-500 population. Vast cultural diversity, vastly varying rural demographics,
poor infrastructure, low income levels and low levels of literacy often tend to lower the
presence of large companies in the rural markets.
7. Transport: Many rural areas are not connected by rail transport. Many roads have been
poorly surfaced and got severely damaged during monsoons. The use of bullock carts is
inevitable even today. Camel carts are used in Rajasthan and Gujarat in both rural and urban
sectors.

8. Low per capita Income:

The per capita income of rural people is low as compared to the urban people. Moreover,
demand in rural markets depends on the agricultural situation, which in turn depends on the
monsoons. Therefore, the demand is not stable or regular. Hence, the per-capita income is low
in villages compared with urban areas.

9. Low levels of literacy:

The level of literacy is lower compared with urban areas. This again leads to a problem of
communication in these rural areas. Print medium becomes ineffective and to an extent
irrelevant, since its reach is poor.

10. Prevalence of spurious brands and seasonal demand:

For any branded product, there are a multitude of local variants, which are cheaper and hence
more desirable. Also, due to illiteracy, the consumer can hardly make out a spurious brand
from an original one. Rural consumers are cautious in buying and their decisions are slow,
they generally give a product a trial and only after complete satisfaction they buy it again.

11. Different way of thinking:

There is a vast difference in the lifestyles of the people. The choice of brands that an urban
customer enjoys is not available to the rural customer, who usually has two to three choices.
As such, the rural customer has a fairly simple thinking and their decisions are still governed
by customs and traditions. It is difficult to make them adopt new practices. Warehousing
problem:

12. Warehousing facilities

Warehousing facilities in the form of godowns are not available in rural India. The available
godowns are not properly maintained to keep goods in proper conditions. This is a major
problem because of which the warehousing cost increases in rural India.

13. Problems in sales force management:

Sales force is generally reluctant to work in rural areas. The languages and dialects vary from
state to state, region to region, and probably from district to district. Since messages have to
be delivered in the local language, it is difficult for sales force to communicate with the rural
consumers. Sales force finds it difficult to adjust to the rural environment and inadequate
facilities available in rural areas.

14. Distribution problem:

Effective distribution requires village-level shopkeeper, taluka-level wholesaler/dealer,
district level stockiest/distributor, and company-owned depot at state level. These many tiers
increase the cost of distribution. Rural markets typically signify complex logistical challenges
that directly translate into high distribution costs. Bad roads, inadequate warehousing and
lack of good distributors pose as major problems to the marketers.
Strategies for effective rural marketing
In rural marketing, a firm has to undergo marketing efforts to satisfy rural segments, which
notably differ from urban segments in some aspects. Some of the strategies for effective rural
marketing from the marketing mix point of view are explained as under:

A. Product Strategies
1. New product designs - Marketers can penetrate the rural market by designing
innovative products keeping in view the life style of the rural target audience. They must
also take into account the environmental conditions in which the product will be used,
its functionality, convenience of operation and cost. Companies like LG, Philips and HUL
have successfully implemented such strategy. LG Electronics had developed customized
television for rural markets called “Sampoorna” which facilitated on-screen display in
regional languages. LG also designed semi-automatic washing machine with double the
capacity of its urban-based machines for rural markets as there are still many joint
families in rural India. A memory back up was also provided keeping in mind the
frequent electricity breakdowns in rural areas.

2. Alteration to the existing product - Product innovation requires heavy investment.

Hence, instead of completely designing the new product, marketers can make changes
to the existing product to suit the requirement of the rural customers.

3. Sturdy products - Rural people give immense importance to durability of a product.

They also have a psychological belief that products which are heavy in weight and bulky
in appearance are sturdier and long lasting. Given the fact that rural people in general
roughly handle the product, the product manufactured for rural market must be sturdy
to bear the rough handling by rural people. Union Carbide has heavy brass torches for
the rural markets instead of the slick plastic torches. Bullet motorcycle is popular in
village due to its [Link] has positioned their motorcycle “Rajdoot” as a
tough [Link] has designed personal computer specially for rural markets. This PC
can withstand adverse weather conditions like heat, humidity and dust and can operate
on alternative power sources such as truck or car batteries.

4. Packaging - Rural consumers prefer small packs. This is due to low purchasing power
and limited funds for shopping. Most of the companies such as HLL, Cavin kare, Proctor
& Gamble, Lipton, Godrej etc. have successfully launched their products in small sachet
packs Further, efforts should be made to evolve such types of packaging which suit the
rigorous rural conditions and pockets of rural consumers.

5. Servicing of the product - For the servicing of the products, it becomes cumbersome
for rural consumers to carry huge consumer durables to towns. Arrangements must be
made to provide accessibility to after sales service.

6. Brand name - The rural consumers are now becoming brand conscious. Brand
identity in rural markets is often created through the visual logo of the product, the
 colour of the product or the taste of the product. The brand name should instantly be
understood by the rural consumers. Rural consumers are unfamiliar with English and
absurd names. Many a times rural consumers ask for peelitikki or neelitikki in case of
washing soaps. Lifebuoy soap was popularly known as ‘lalsaboon’ while Eveready
batteries are popularly known as “Billy Chaap” identified by the cat and in rural areas.
Mahindra tractor’s brand ‘Bhumiputra’ has been popular among rural people.

7. Add on value - Marketers must offer suitable ‘odd-ons’ For example:Arvind Mills
entered rural market with its specially made ruff and Tuff brand. Britannia has ventured
into the rural market with tiger brand biscuits and is gaining market share with this
brand.

8. Utility oriented products - The rural consumers are more concerned with the
functional utility of the product than its appearance and sophistication. They like simple
and long-life products. They are interested in immediate results. They respond to those
products that suit their religious faith, and social norms and customs. They demand
products which can assists in their traditional occupations and life style. They also prefer
family-used products. They are less concerned with product services associated with
products like after-sales services, guarantee and warrantee, home delivery, and other
similar services. However, the taste of rural consumers is now changing. They have
started demanding novel products with distinctive features. Marketers must keep
consider these aspects for satisfying the rural consumers.

B. Pricing Strategies
Rural customers are price-sensitive and highly influenced by level of pricing. Price is the
strongest factor that affects their buying decision. They prefer products which are low in price
and medium in quality. They are easily attracted by price discounts and rebates. Following are
some of the pricing strategies that can be followed by marketers:

1. Low price points - Rural consumers are highly price conscious. Moreover, majority
of them are daily wage earners. They have to purchase a variety of daily needed items
with their limited earnings. Hence, marketers must introduce low-point price packs so
that it becomes affordable to them. Several companies are offering products at low-unit
price points in rural areas to increase their sales volume. Chik Shampoo was the trend
setter in the sachet market many years ago, when it introduced shampoo sachets at Rs.
1 to penetrate the rural market. Today HUL sells maximum number of its products,
ranging from shampoo to hair oil in sachet packs in rural areas.

2. Low cost packaging - The cost of a product can be brought down by using low-cost
packaging materials that are durable and aesthetic. The packaging need not be very
sophisticated as rural consumers are not willing to pay higher price for fancy external
appearances. Since they are interested in functional utility of the product, marketers can
adopt simple packaging. Few years ago, Britannia's Tiger biscuit became popular in rural
areas because of its small affordable packaging especially designed for rural consumers.
 3. Refillable / Reusable packaging - Rural consumers prefer refill and reusable packs
products like edible oils, health drinks, coffee etc. are available in refill packs. Packing
the product in the packs where such empty packs can be reused by the consumers also
encourages them to purchase the product. Reusable packs make them feel that they are
getting something free of cost. Companies have started packing fertilizers in low-
density/high-density polyethylene (LDPE/HDPE) sacks, which are not only tamper
proof but also reusable. Asian Paints had introduced emulsion in 10 litre and 20 litre
reusable bucket packs.

4. Application of value engineering - This is a technique which can be used to evolve

cheaper products by substituting the costly raw material with the cheaper one, without
sacrificing the quality or functional efficiency of the product, for instance, in food
industry, soya protein is being used instead of milk protein. Milk protein is expensive
while soya protein is cheaper but the nutrition value is same. The aim of value
engineering is to reduce the value of the product so that a larger segment of population
can afford it to buy.

5. Discounts - In order to stimulate demand, marketers must offer discounts on

products. Rural consumers normally buy household articles during festive occasions.
Special discounts must be offered to them to stimulate them to buy the products.

6. Credit facility - As the purchasing power of the rural customer is quite low, they tend
to purchase consumer durable products on credit. Marketers can collaborate with banks
and other financial institutions to sell their products on credit. Moreover, the process to
provide such credit facilities must not be cumbersome.

C. Distribution Strategies
Most marketers have distribution arrangements for villages with a population of at least 5000
people. While formulating specific strategies for distribution in rural areas, the characteristics
of the product, its shelf life and other factors have to be kept in mind. Some of the distribution
strategies for rural market are:

1. Distribution up to feeder market - Keeping in view the hierarchy of markets for the
rural consumers, the feeder markets and mandi towns offer excellent scope for
distribution. Stockists or wholesalers are appointed in such towns who arrange for
distribution in the interior areas.

2. Haats/Melas - The use of the captive audience points like haats and melas has
contributed significantly to rural sales. There are about 50,000 haats and 25,000 melas
are held annually. Haats are rural bazaars organized on a regular basis where people
from village and nearby places put up temporary shops to sell their produce. Haats
normally operate on a weekly basis. Haats are a readymade distribution network and
this large rural marketing system has been in existence since centuries. A large number
of wholesalers and retailers buy from haats for their village stores. Marketers can make
 use of such haats for effective distribution of their products in rural areas. Companies
like Mahindra, Hero Honda, Parle Products, Nestle, Dabur, Airtel, BSNL etc. have been
successful in generating sales through haats. Melas are also an important element of
India's culture and attracts crowds from all across the country. During melas marketers
gets an opportunity to interact with large number of consumers and can encourage trial
purchase.

3. Stockist’s van / Company owned vehicles - Delivery vans have become a popular
form of distribution in rural areas. These vehicles can serve two purposes. It can take
the products to the customers in every nook and comer of the market. The van can also
be used for sales promotions. Ever ready company had established an extensive
distribution network comprising 44 warehouses supplying the products to over 4,000
distributors using 1,000 vans. Selling through bullock cart/camel cart is used to market
in remote villages with no motorable roads.

4. Public Distribution System (PDS) - PDS is a system of distribution of essential

commodities to a large number of people through a network of fair price shops. The PDS
system in India has a huge infrastructure base that could be utilized for the distribution
of consumer products by the marketers. The products can thus reach remote rural areas.

5. Utilisation of multi-purpose distribution centres by petroleum/oil companies -

In order to cater to the rural areas the petroleum/oil companies have evolved multi-
purpose distribution centres in rural areas. In addition to petrol/diesel, lubricants, these
outlets also stock consumables agricultural inputs like fertilizers, pesticides and seeds.
The rural consumer who has tractors, oil-engine pump sets, two-wheelers etc.
frequently visit these outlets for their requirements. These outlets can be profitably
utilized for selling consumables and durable items also.

6. Use of co-operative societies - There are over 3 lacks co-operative societies

operating in rural areas for different purposes like marketing cooperatives, farmers
service cooperatives and other multi-purpose cooperatives. These cooperatives have an
arrangement for centralized procurement and distribution through their respective
state level federation. Such state level federation can be motivated to procure and
distribute consumables items and low value durable items to the members to the society
for serving to the rural consumers.

D. Promotion strategies
Rural customers can be attracted by local and regional promotional efforts. Following are the
promotion strategies for rural areas:

1. Advertising - Advertising in the rural context must be designed according to the need
of rural consumers. It must incorporate cultural nuances and regional language. Rural
media for advertising products can be broadly classified into conventional mass media
and non-conventional rural-centric media.
Conventional media
i) Newspapers and magazines: Local language newspapers and magazines are popular
among educated rural families. E.g. Dina Thanthi in Tamilnadu, Punjab Kesri in North
and Loksatta in Maharashtra.
ii) Television: Television is the fastest growing medium in rural India. With the
increasing ownership of television and the influx of cable and satellite television, this
medium is gaining new ground in rural areas. About 77% of villages receive TV
transmission. Regional channels are popular like SUN TV in Tamilnadu and Asianet in
Kerala.
iii) Radio: Radio is a well established medium in rural areas. Today, with the rise in the
number of FM radio stations, radio can be effectively used as a medium of rural
communication. Fertilizer and tractor companies and FMCG companies largely use this
medium for advertising.
iv) Cinema: Films in theatres attract large rural audience. Short advertisement films and
cinema slides can be used to disseminate product information. LIC and other private
insurance companies have been showing short movies in rural theatres to create
awareness about life insurance.
v) Outdoor: These include hoardings, wall paintings, illuminations and other displays.
Wall paintings are an effective and economical medium for advertising in rural areas.
Brightly painted walls near the village bus stops, cinema halls, banks, post office,
panchayat bhavan etc. generate lot of visibility among rural audience.
vi) Internet: Many companies are now using Internet for promoting their products in
rural areas. The e-choupal and other portals are ideal platforms for marketers to reach
to rural audience.

Non-conventional rural-centric media

i) Video vans: Many marketers now use video vans for promoting their products. These
vans exhibit films, audiovisual presentations, slide shows etc. They also provide space
for stocking samples and products for sale. Companies including Tata Tea, HUL, LG,
Colgate, TVS and several agri input companies have used video vans successfully to
deliver their customized messages.
ii) Haats, melas and mandis: These are useful media of rural communication which can
be used as platforms for to promote products and induce brand trials.
iii) Folk media: Folk media includes folk songs, folk dances and other theatrical forms
including puppetry, street shows, magic shows etc. Puppetry is the indigenous theatre
of India; it has been the most popular form of entertainment to the village people. LIC
used puppets to educate rural masses about life insurance. Nautanki is popular in Uttar
Pradesh while Tamasha in Maharashtra.
 iv) Demonstrations: Companies can make use of demonstrations to communicate
about products to the rural people. Product usage demonstrations can be effective
especially for the illiterate rural consumers.
v) Opinion leaders: Rural consumers often make buying decisions after consultation
with the opinion leaders. Opinion leader in rural areas is considered to be
knowledgeable and his advice is normally followed. The opinion leader may be
landlords, teachers, sarpanch, elders of the family, village banniyaas as well as young
men and women with some exposure to the urban ways of living. Dealers also play a key
role in influencing the buyer purchase decision.
vi) Others: These include magic shows, road shows, interactive games, competitions,
sports & cultural events, contests and so on.

Relationship marketing

Relationship marketing is the process of developing long-lasting relationships with

customers. Through these relationships, companies can promote brand loyalty and encourage
customers to make repeat purchases over an extended time period. This strategy focuses on
long-term sales goals and customer loyalty rather than short-term increases in sales with one-
time customers.
Relationship marketing is a facet of customer relationship management (CRM) that focuses
on customer loyalty and long-term customer engagement rather than shorter-term goals like
customer acquisition and individual sales. The goal of relationship marketing (or customer
relationship marketing) is to create strong, even emotional, customer connections to a brand
that can lead to ongoing business, free word-of-mouth promotion and information from
customers that can generate leads.

Principles of Relationship Marketing:

 Customer-Centric Approach: Putting the customer at the center of all marketing
efforts and tailoring products, services, and communication to meet their specific needs
and preferences.

 Personalization and Customization: Creating personalized experiences for customers

by understanding their preferences, purchase history, and interactions with the brand.

 Two-Way Communication and Interaction: Engaging in open dialogue with

customers, actively listening to their feedback, responding to concerns, and involving
them in the brand's decision-making processes.

 Long-Term Relationship Building: Focusing on building enduring relationships and

not just immediate sales. The goal is to turn first-time buyers into loyal, repeat
customers.
  Mutual Value Creation: Striving for a win-win situation where both the customer and
the brand derive value from the relationship. Satisfied customers are more likely to
continue their association with the brand.

Strategies for Relationship Marketing:

 Customer Segmentation and Targeting: Segmenting the customer base based on
characteristics, behaviors, and preferences to tailor marketing efforts and
communication for each segment.

 Customer Engagement Programs: Creating loyalty programs, rewards, and incentives

to encourage repeat purchases and engagement, ultimately fostering a sense of loyalty
and community.

 Personalized Communication: Utilizing customer data and analytics to craft

personalized messages and offers that resonate with individual customers, enhancing
their overall experience.

 Feedback and Surveys: Gathering feedback from customers through surveys and other
means to understand their perceptions, identify areas for improvement, and showcase
responsiveness.

 Continuous Communication and Follow-Up: Maintaining regular communication

with customers, providing updates, special offers, and educational content to keep them
engaged and informed.

Importance
1. It Improves Customer Experience
Every business owner knows that a customer having an excellent experience with products
or services rendered is vital. You don’t want people who patronize you to leave feeling
disappointed.
Relationship marketing, where you have one-on-one interaction with customers or prospects,
can bring about the above.

2. It Ensures Better Feedback from Customers

Feedback is the positive or negative response you get from those who use your products or
services. The guarantee that you’ll receive an excellent response from your customers
depends on the relationship that exists between you and them.
Feedback under relationship marketing also means that your customers would be eager to
inform you on the areas you need to improve on. It means that they would rather stay with
you than go to another brand.
3. It Builds Your Referrals
We live in a world of referrals. So referrals are a form of marketing by individuals who have
used a product, found it to be everything they expected, got excellent treatment from the
salesperson(s) and then go on to tell others about it.
It’s free marketing made with testimonies, and it costs companies nothing but good
relationship marketing. However, if your relationship marketing is crappy, and your
customers don’t get treated right, then it is guaranteed that the only report they’ll give about
you is negative, with zero referrals.
Most brands today get new customers from referrals more than the adverts they spend
millions on. Adverts will get your product known. However, don’t forget that others are
offering what you are, and consumers often have a brand they use and trust. So the only way
to win them over is by someone pointing them your way.

4. It Keeps You Informed About the Needs of Your Customers

Let’s point out that relationship marketing goes beyond effectively pitching your product in a
polite and friendly way, to developing an excellent rapport. People appreciate it when they
are heard, and sometimes they prefer to share deep personal problems with a stranger.
With relationship marketing, when you notice the frowns and overly-excited look, make sure
to offer words of comfort or pay a compliment. It will leave the person you are dealing with
feeling like you saw him or her as more than the next quick sale.
This will also help you discover what they need to ensure you are providing them with the
best service and meeting their needs. For example, Starbucks introduced free Wi-Fi after its
customers suggested it.

5. It Leads To New Business Ideas

As mentioned above, knowing what your customers need helps you give them what they want,
and it can also help you birth new business ideas.
Most companies branch into other ventures after starting with one because of the ideas that
came to them from the information they gathered from their customers.

6. It Helps Enhance Your Uniqueness

Relationship marketing sets you apart from your competitors and helps you create your brand
in a unique way that meets your customers’ needs.
A lot of business owners might sell the same thing or render the same services. However,
there’s a reason why McDonald’s is still in business, and other fast-food chains have folded up
over the years.

7. It Fosters Loyalty
This is one of the most significant reasons why relationship marketing is essential. Treating
people well, having a good relationship, and giving them excellent products and services
fosters loyalty, and it means they’ll always stay with you.
Some people have shopped in a particular location for a long time or ordered from a company.
When you ask questions, you’ll find that their loyalty is based on the great relationship they
have with the business owners/staff.
 Digital Marketing / E-Marketing

E-marketing is the marketing of goods and services through the internet.

It makes it easy for businesses to reach a wide range of potential customers due to the large
number of people using the internet today.
E-marketing comprises all the processes of planning, pricing, promotion, execution, and
distribution of products and services over the internet and the World Wide Web. The purpose
of using the computerized system is to facilitate the customers and meet their demands. E-
marketing serves many important functions both for the customers and businesses as well.
The customers would get competitive pricing and businesses would be able to cut down their
operational cost.
Various technologies are used in e-marketing, allowing shoppers to read ads, use/receive
coupons, view pictures of products, compare prices, and make purchases with a few clicks of
a mouse. Which saves time and money.

E-marketing is crucial for business for a few reasons, as it:

 Allows you to find and target potential customers online
 Lets you more efficiently communicate with your audience
 Personalize your marketing strategy based on customers’ interests
 Increase your brand’s visibility
 Get quality leads actually interested in your product

Forms of digital marketing

1. Internet marketing
Internet marketing, also referred to as web marketing, online marketing, or e-marketing, is
the marketing of products or services over the Internet. The Internet has brought media to
global audience. Internet marketing includes:
 Business to business (B2B):B2Bdescribes online commerce transactions between
businesses, such as between a manufacturer and a wholesaler, or between a wholesaler
and a retailer.
 Business to consumer (B2C):B2C refers to transactions conducted over the Internet
between a business and a consumer. Typically, it means selling of goods and services
by business firms to the ultimate consumers.
 Consumer to consumer (C2C):This involves consumer to consumer marketing, where
consumers directly sell products or services to other consumers, using the Internet.
Firms like eBay, [Link] provide such facilities.

Some of the components of Internet Marketing include websites, search engine marketing,
email marketing, blog marketing, social media marketing etc.
2. Social media marketing
Social media marketing refers to the process of promoting business activities through social
media channels. Social media can take the form of text, audio, video, images and communities.
Social media marketing involves approaching target customers through social media sites
such as Facebook, Twitter, LinkedIn etc. It offers business a massive opportunity to reach and
engage more prospects online in a both cost effective and personal manner. Social media is an
extremely useful tool using which companies can get their information, product descriptions,
promotions all ingrained in the chain of networking world. Communication through social
media results in electronic word of mouth publicity as the receiver shares the message. People
tend to believe message received through such website as compared to advertising because it
is undertaken by a third party. Social media marketing can also be undertaken through blogs,
photo sharing sites, YouTube, Instagram and so on.

3. Viral marketing
Viral marketing is one of the effective ways to market on the Internet. It is a form of word-of-
mouth marketing that aims in spreading a message exponentially. It involves creating an
infectious excitement about a product so that people pass on information about it through
emails, social networking sites, blogs and any other form of online network.

4. Telemarketing
The use of the telephone in direct marketing has grown dramatically over the past two
decades. Telemarketing is the business or practice of marketing goods or services by
telephone. It is a form of direct marketing. Telemarketing is the process of using the telephone
to generate leads, make sales, or gather marketing information. These days the marketer uses
call centres for telemarketing his products.
Telemarketing can be of two types:
 Inbound telemarketing: It consists of handling incoming telephone calls. The
inbound calls are often generated by broadcast advertising, direct mail, catalogues and
Internet ads that feature a toll-free number.
 Outbound telemarketing: Here, representatives initiate calls to the customers or
prospects. Such calls are made to sell products or provide services. Outbound
telemarketing can be aimed directly at the end consumer.

5. Mobile marketing
Mobile marketing involves marketing on or with a mobile device, such as a cell phone. It is
conducted using wireless networks. Hence it is also known as "wireless marketing". Mobile
phones are extremely personalised devices. Furthermore since the consumer carries mobile
phone wherever he or she goes, they have become an effective tool in being in
Trends of E-Marketing
E-marketing can be broken down into eight main categories:
 Search engine optimization (SEO)
 Pay-per-click (PPC)
 Social media marketing
 Content marketing
 Email marketing
 Mobile marketing
 Affiliate marketing
 Influencer marketing

1. Search Engine Optimization (SEO)

SEO helps you achieve organic (non-paid) traffic from search engines like Google. Organic
results appear underneath paid results on the search results page:
The goal of an SEO strategy is to rank as highly on the search results page as possible. That
way, potential customers will see your page first.
Here are a few things you can do to improve your SEO:
 Research keywords you plan to target in your content
 Create content that addresses customers’ problems
 Optimize for on-page SEO factors
 Find and fix technical SEO issues
 Earn backlinks from authoritative sites
A good way to get started is to use our Keyword Magic Tool to find relevant keywords for your
business.
All you need to do is plug in a topic (keyword) you want suggestions for, and you’ll receive a
wide range of related keywords you can sort by search volume, question-based keywords, and
more.

2. Pay-Per-Click (PPC)
Pay-per-click advertising is a digital method where an advertiser pays a publisher every time
the ad is clicked. What differentiates pay-per-click from SEO is that you have to pay for the
results.
When planned strategically, PPC advertising can increase traffic to a specific page or site.
The cost of running an ad or promoting your search results will vary depending on how
competitive your keywords are. A keyword with high competition will likely cost more, while
a low-competition keyword will likely cost less.
Ads can be classified as pay-per-click if they appear on search results pages, while browsing
the web, before YouTube videos, and in social media.

3. Social Media Marketing

Social media marketing includes everything a business does through its social media channels
to promote its products or services.
A successful social media marketing strategy requires engaging posts, interaction with the
audience, and consistency.
Ensure that every piece of content you publish serves a distinct purpose or solves a specific
problem for your social media marketing efforts to be effective.
Examples of social media marketing include posting on Facebook, Instagram, LinkedIn,
Twitter, Reddit, etc.

4. Content Marketing
Content marketing is a type of e-marketing that focuses on creating, publishing, and
distributing content for an online targeted audience.
The purpose of content marketing is to increase brand awareness through storytelling and
information sharing and to get the reader to take action toward becoming a customer, like
requesting more information or joining an email list.
Examples of content marketing include blog posts, white papers, e-books, podcasts, articles,
and case studies.

5. Email Marketing
In email marketing, businesses send out emails to contacts informing them about products,
services, sales, content, etc. Its high return on investment (ROI) is a vital part of most
businesses’ inbound strategy.
Sending out mass emails that “fit all” to your contacts is easy but no longer effective. Modern
email marketing focuses on consent, segmentation, and personalization. You can build a
community around your brand through a well-designed email marketing strategy.
Marketers should strive to improve two metrics regarding email marketing software:
1. Open rates (how many people opened an email) and
2. Click-through rates (how many people clicked a link after opening it)
Examples of email marketing include sending out a weekly newsletter linking to your latest
blog post, emailing customers when there is a limited offer or sale, and emailing your
customers about a new product or service.
6. Mobile Marketing
In mobile marketing, websites, e-mail, SMS, MMS, social media, and apps are used to reach a
target audience through smartphones, tablets, and other mobile devices.
Some examples include:
 Promotions sent through text messages (SMS marketing)
 Promotions sent through instant messaging or chat platforms
 Promotions sent through push notifications
 In-app advertisements
 Mobile banner ads
Mobile marketing can help drive brand value and demand for your products or services by
connecting with more consumers in real time at any point in the customer lifecycle.

7. Affiliate Marketing
Affiliate marketing is a marketing agreement between a web retailer and an external website
in which the retailer pays the external website a commission for the site visitors or sales
generated by its referrals.
Affiliate marketing allows businesses to effectively market their products at a low cost and
effort, with high return on investment and increased brand awareness and business growth.

8. Influencer Marketing
Influencer marketing refers to the partnership between a brand and an influencer. Influencers
receive payment and/or products in exchange for creating or sharing content about a brand
with their followers.
You don’t necessarily need to reach out to the influencer with the largest following. It can
actually be more beneficial to find an influencer within your niche with a high engagement
rate.
The Advantages of E-Marketing
 Global Reach: E-marketing allows businesses to reach a global audience, breaking down
geographical barriers. Through online platforms and advertising, businesses can target and
connect with potential customers anywhere in the world.
 Cost-Effectiveness: Digital marketing is often more cost-effective than traditional
marketing channels. Online advertising, email campaigns, and social media promotions are
usually more affordable, especially for small and medium-sized businesses.
 Targeted Marketing: E-marketing enables precise targeting of specific audiences based
on demographics, behaviors, interests, and other parameters. This targeted approach
ensures that marketing efforts are directed towards individuals who are more likely to be
interested in the products or services being offered.
 Personalization: Digital marketing allows for a high level of personalization in marketing
messages and campaigns. By leveraging data analytics, businesses can tailor their content
and offerings to match individual customer preferences, enhancing engagement and
satisfaction.
 Measurable Results and Analytics: E-marketing provides comprehensive analytics and
measurement tools to track the performance of marketing campaigns in real-time.
Marketers can analyze metrics such as website traffic, conversions, click-through rates, and
customer behavior, enabling data-driven decision-making and continuous optimization.
 Immediate Interaction and Feedback: Digital platforms facilitate immediate interaction
and engagement with customers. Whether through social media, email, or live chat,
businesses can quickly respond to inquiries, address concerns, and gather valuable
feedback, fostering customer relationships and loyalty.
 Flexibility and Adaptability: E-marketing allows businesses to adapt their strategies
quickly based on real-time data and changing market dynamics. This agility ensures that
marketing efforts stay relevant and effective in a constantly evolving digital landscape.
 Brand Exposure and Recognition: E-marketing provides numerous opportunities to
enhance brand visibility and recognition. Consistent and strategic online marketing efforts
across various platforms help in establishing a strong brand presence in the digital world.
 Diverse Marketing Channels: E-marketing offers a wide range of channels to choose from,
including social media, email marketing, content marketing, search engine optimization,
pay-per-click advertising, and more. Businesses can diversify their strategies and leverage
multiple channels to reach a broader audience.
 Integration and Automation: E-marketing allows for seamless integration across various
digital channels, enabling centralized campaign management. Automation tools can
streamline marketing processes, saving time and resources while enhancing efficiency and
accuracy.
 Improved Conversion Rates: Through targeted marketing and personalized
communication, e-marketing enhances the likelihood of converting leads into customers.
 Tailored messages and offers resonate with the audience, resulting in higher conversion
rates compared to generic marketing.
 Social Proof and Recommendations: E-marketing leverages user-generated content,
reviews, and social media recommendations to influence purchasing decisions. Positive
feedback and testimonials shared by customers online build trust and credibility for the
brand.
 24/7 Availability: Online platforms and marketing efforts are accessible 24/7, allowing
potential customers to interact with the brand, make inquiries, and even make purchases
at their convenience, irrespective of the time zone.

E-marketing offers businesses a multitude of advantages, including a wider reach, cost-

effectiveness, targeted communication, real-time feedback, and improved customer
engagement. Embracing e-marketing as a fundamental aspect of marketing strategies is
crucial for businesses to thrive in the digital age and stay competitive in the global
marketplace.

Social Media Marketing

Social media the platforms on which users build social networks and share information to
build a company's brand, increase sales, and drive website traffic. In addition to providing
companies with a way to engage with existing customers and reach new ones, SMM has
purpose-built data analytics that allows marketers to track the success of their efforts and
identify even more ways to engage.

Social media marketing platforms are digital platforms that allow users to create and share
content through social media channels. A social media marketing platform often refers to tools
or software solutions that facilitate easier sharing, posting, and other features, or it may refer
to advertising platforms that allow you to run advertising campaigns on platforms like
Facebook, Instagram, and Twitter.

Social media marketing platforms can help you achieve your marketing goals, such as:
 Increasing website traffic
 Raising brand awareness
 Building conversions
 Improving interaction and communication with key audiences
 Creating a brand identity and positive brand association
Key Components of Social Media Marketing:
 Content Creation and Sharing: Creating engaging and relevant content tailored to each
social media platform. Content can include text, images, videos, info-graphics, articles, and
more, designed to resonate with the target audience.
 Audience Engagement: Actively engaging with the audience through comments,
messages, and discussions. Interaction helps in building a community, increasing brand
loyalty, and gaining insights into consumer preferences.
 Social Media Advertising: Utilizing paid advertising options provided by social media
platforms to reach a broader audience. This includes targeted ads based on demographics,
interests, behaviors, and other parameters.
 Influencer Collaborations: Partnering with influencers, individuals, or organizations with
a substantial following and influence within a specific niche. Influencers promote products
or services to their audience, leveraging their credibility.
 Community Management: Managing and nurturing online communities related to the
brand or industry. Engaging with community members, addressing concerns, and fostering
a sense of belonging is crucial.
 Data Analytics and Insights: Using analytics tools to measure and analyze the
performance of social media campaigns. Tracking metrics like reach, engagement,
conversion rates, and customer behavior provides valuable insights for optimizing
strategies.

Steps to Implement an Effective Social Media Marketing Strategy:

 Set Clear Objectives and Goals: Define specific, measurable, achievable, relevant, and
time-bound (SMART) objectives that align with overall marketing goals. Examples include
increasing brand awareness, driving website traffic, or boosting sales.
 Understand Your Target Audience: Conduct research to identify the demographics,
behaviors, interests, and preferences of your target audience. This helps tailor content and
advertising to better resonate with them.
 Choose Appropriate Social Media Platforms: Select platforms based on where your
target audience is most active. Common platforms include Facebook, Instagram, Twitter,
LinkedIn, YouTube, and Pinterest. Each platform serves a different purpose and audience.
 Develop a Content Strategy: Create a content calendar outlining the type of content to be
shared, posting schedules, and themes. Content should be informative, entertaining, and
engaging to capture the audience's attention.
 Engage and Build Relationships: Actively engage with your audience by responding to
comments, messages, and inquiries promptly. Encourage discussions and user-generated
content to build a sense of community.
 Monitor and Measure Performance: Use social media analytics tools to track the
performance of your campaigns. Evaluate key metrics like reach, engagement, click-
through rates, conversions, and ROI to make data-driven decisions.
 Optimize and Iterate: Based on the insights gathered, optimize your strategy by tweaking
content, targeting, or ad placements to improve results. Continuously iterate and refine
your strategy for better outcomes.

Advantages of Social Media Marketing:

 Enhanced Brand Visibility and Recognition: Social media helps increase brand
exposure, making it more recognizable to a broader audience.
 Cost-Effectiveness: SMM can be more cost-effective than traditional marketing channels,
making it accessible for businesses of all sizes.
 Targeted Advertising: Social media platforms offer advanced targeting options, allowing
you to reach a specific audience based on various parameters.
 Increased Website Traffic and Conversions: Social media campaigns can drive traffic to
your website, leading to increased conversions and sales.
 Real-Time Communication and Customer Feedback: SMM enables real-time
communication with customers, providing valuable feedback that can be used to improve
products or services.
 Data Analytics and Insights: Social media platforms provide analytics tools to measure
campaign performance and derive valuable insights for strategy optimization.
 Engagement and Community Building: SMM fosters engagement and community
building, establishing a loyal customer base and brand advocates.

Social Media Marketing Platforms

1. Facebook
Facebook has more than 2.27 billion active monthly users, which makes it your number one
choice for a social media marketing platform. With the Facebook Ads Manager, you can create
ads that target users based on factors such as age, location, gender, relationship status, level
of education, interests, job title, purchase behaviour, device usage, etc.
Facebook also allows you to create Custom Audiences from the list of phone numbers or email
addresses that you’ve collected to reach the current customers. You can also use Facebook
Pixel to target the customers who have visited your website. A Facebook business page is a
must for each company, but ensure that you update your page regularly.

2. Twitter (Now X)
Twitter has an average of 186 million daily active users.
It is a fast-paced platform, and many users visit it to get new information. It makes it a good
marketing platform for companies that publish original content regularly. Twitter also makes
it easy for its users to share links to new blog posts and pages, and if you do it regularly, you
will send users directly to your new content. If you develop the habit of sharing useful and
informative content from other sources, you will create your reputation as an authority in
your industry.

3. LinkedIn
LinkedIn is known as the primary social networking site for professionals.
You can use it to update your customers on your business, recruit new team members, and
connect with industry partners. Since it’s a professional network, it makes the best choice for
B2B social media marketing. Forbes ranks it as the best platform for generating leads, and it
accounts for 46% of the social media traffic that generates on company websites for B2B
firms.

4. Instagram
Instagram is owned by Facebook, and it boasts of more than a million monthly active users. It
has similar advertising options as Facebook.
Instagram is a visual platform that allows you to showcase the personality of your business. It
is not a text-heavy platform, and it doesn’t allow links within posts. The good thing is that you
have access to several tools that you can use to improve the creative experience of your
audience. Instagram is the best platform for your business if you need to reach your customers
through photos and videos. You can post photos of your products in use and ask your followers
to do the same.
Instagram hashtags are also a great way for marketers to reach a wider audience, and this
audience can be expanded further, through the Instagram stories or Instagram Live Video
feature. Instagram also provides advertising options for businesses, which are accessible
through Facebook.

5. YouTube
YouTube has over 2 billion registered users. It is the best social media platform for
highlighting the company culture and creating tutorials and demonstrations.
If your company is capable of creating its content, YouTube can be a great platform for
connecting to users. Apart from the views that you get directly on the platform, you can also
use YouTube to host videos to be embedded to your site. Visual content is an effective way of
engaging site visitors. It gives you a reason to create an account on YouTube.

6. Pinterest
Pinterest has over 400 million monthly active users, and it’s a social media platform for
sharing products.
If you have an eCommerce business, Pinterest is a MUST for you. 87% of pinners have
purchased an item because of Pinterest. You can upload individual photos alongside short
descriptions and links to the product page. Pinterest also has a built-in shopping feature that
makes it easier for businesses to promote their products on their site.
The marketer can use rich pins to give context to a product, article, recipe, and app pins, and
use their advertising options to reach more users. It gives marketers an easy way of directing
traffic to their product pages and connecting with potential customers.
7. Reddit
Reddit has more than 430 million monthly active users.
It is a good platform for audience or content reach and interacting with niche
audiences. Reddit provides users with similar interests with a platform where they can share
ideas. The users can share links, content, or ask questions on topic groups known
as subreddits. The good thing is that there are sub-reddits for nearly any topic.
Marketers can use Reddit as a research tool to know what their audience is talking about and
then create content based on that. Other than research, Reddit provides its users with
advertising options to help them get their businesses in front of interested users.

8. Snapchat
Snapchat has more than 238 million daily active users.
It is a good platform for sending real-time updates and promoting events. Snapchat allows its
users to post photos and videos that remain active on the platform for 24 hours. It makes it
good for businesses that need to promote timely events, like product launches or a
conference.
It also allows marketers to create custom, branded geotags to promote events in particular
locations during a particular period. Snapchat is a well-known platform for an audience that
skews younger, making it the best platform to target college students.

9. Tumblr
Tumblr is a microblogging platform that does not perfectly fit in the list of social media
platforms, but it’s a site to help you reach a target audience aged between 16 and 34 years.
It has 507.2 million registered blogs. Tumblr has the youngest demographic of all social media
sites, and its users are very active. However, if you’re not familiar with the platform, it can be
challenging for you to market your brand on it.

10. TikTok (Now banned in India)

TikTok social media platform has more than 689 million monthly active users from across the
globe.
It is a good platform to help you give users a peek behind your business scenes and take part
in viral trends. It allows its users to share short videos for various purposes. These short
videos can be of viral dances, quick tutorials, and comedic kits. Other than sharing videos
about your business, you can also use TikTok’s advertising features to promote your business.

Viral Marketing

Viral marketing is the method of promoting products or services on various social media
platforms with the goal of receiving engagement and exposure at a national or global level.
Viral marketing is a strategy that you can use to get people to promote your app (or any other
product) via their existing social networks.
Viral marketing is a marketing strategy that aims to rapidly and exponentially spread a
message, content, or information among a broad audience through online platforms and social
media networks.
The success of a viral marketing strategy depends on customers sharing promotional videos
or posts with their social media connections. The more times a marketing campaign gets
shared by users who have a greater reach or more connections, the more successful a
campaign is likely to be.
If you work in marketing, one of your main goals may be to reach a large audience. One of the
best ways to do this is to leverage viral marketing.

Key Elements of Viral Marketing:

• Infectious Content: Viral marketing begins with creating highly compelling and engaging
content that captures the audience's attention. The content is designed to be so intriguing,
funny, or valuable that people want to share it with their network.
• Rapid Sharing and Replication: The main objective of viral marketing is for the content
to be shared rapidly and exponentially by individuals who come across it. Each person who
shares the content essentially replicates it, contributing to its widespread dissemination.
• Leveraging Existing Networks: Viral marketing relies on existing social networks,
communication channels, and online communities to spread the message. People share the
content with their friends, followers, or contacts within their network.
• Emotional Appeal or Utility: Viral content usually triggers strong emotional responses
such as amusement, surprise, happiness, or anger. Alternatively, it may provide practical
utility or valuable information that motivates people to share it.
• Low Cost and High Impact: Viral marketing often requires minimal initial investment
compared to traditional advertising campaigns. However, the potential reach and impact can
be massive due to the exponential nature of sharing.
• Authenticity and Credibility: Authenticity and credibility are crucial for the success of
viral content. People are more likely to share content that they trust and believe in, especially
if it aligns with their values or interests.

How Viral Marketing Works:

• Creation of Viral Content: Marketers or content creators devise content that is highly
engaging, shareable, and triggers a strong emotional response in the audience. This can be in
the form of videos, images, articles, memes, challenges, or interactive campaigns.

• Sharing and Amplification: The content is initially shared by the brand or individual
through their social media channels, website, or other platforms. People who resonate with
the content then voluntarily share it with their networks, starting a chain reaction.
• Exponential Reach: As more people share the content, it reaches a broader audience.
Each new share results in a multiplication effect, potentially leading to a massive reach within
a short period.
• Engagement and Interaction: Viral content often encourages interaction, discussions,
and user-generated content. The engagement generated further fuels the viral spread as
people actively participate and share their experiences related to the content.
• Tracking and Optimization: Marketers closely monitor the performance of the viral
campaign, track shares, engagement, website traffic, and conversions. Insights gained from
tracking help in refining future strategies for improved virality.
Example – Modi has recently promoted Lakshadweep tourism to counter Malaysia.

Advantages
Low Cost - Viral marketing is its relatively low cost compared to other forms of advertising.
This is because the message is spread by individuals rather than paid advertising campaigns.
When a message or piece of content is shared, it has the potential to reach a large audience
quickly and at little or no cost to the company. Additionally, the message is often seen as more
credible and trustworthy when it is shared by individuals rather than being directly promoted
by the company. This can lead to higher levels of engagement and conversions.

Large Reach - Viral campaigns have the advantage of potentially reaching a large audience in
a relatively short period of time. When people share content, it can be seen by people who
may not normally see the company's marketing efforts.
When an individual shares something with their friends and followers, it can create an
exponential effect with their own networks. This viral campaigns have the potential to reach
large numbers of people quickly and can be a powerful tool for building brand awareness.
Viral marketing strategies that leverage vernacular languages and local nuances can be
especially effective in targeting specific demographics and marketing to audiences that would
not ordinarily be served by traditional advertising methods.

Increased Brand Recall - The advantage of viral marketing lies in its ability to create an
emotional connection with viewers. When people share content that they feel passionate
about, it often creates an emotional bond between them and the brand, which can drive loyalty
and encourage repeat purchases.
This increased level of engagement also leads to greater brand recall. People who have seen a
shared piece of content are more likely to remember the brand, which can be beneficial when
they're looking to make a purchase in the future.

Positive Word-of-Mouth - Viral marketing strategies are excellent for creating positive
word-of-mouth about a brand. When people share content that they like, it reflects positively
on the brand and can lead to increased levels of trust.
Additionally, when someone shares content from a company in their personal network, it
often implies an endorsement of that company which can increase credibility and
trustworthiness.
Keep in mind that viral marketing campaigns that spread negative or misleading information
can lead to negative word-of-mouth, which can harm a company's reputation. Therefore, it's
essential that companies only create and share content that is accurate and aligns with their
brand values.

Trust and Credibility - Viral marketing builds trust and credibility with potential customers.
As mentioned earlier, when a message is shared by individuals that people trust and respect,
it is often seen as more credible than if it were to be directly promoted by the company itself.
Companies can use word-of-mouth marketing to focus on creating and reinforcing positive
messages about the brand. This can be beneficial in building a good reputation and improving
customer loyalty.

Increased Website Traffic - Viral marketing is a powerful tool for driving website traffic
because it taps into the natural tendency of people to share interesting or valuable
information with their networks.
When people see content shared by their friends or followers, they are more likely to click on
the link and visit the company's website, which gives companies an opportunity to convert
visitors into customers.

Greater Social Media Presence - Viral marketing can also help increase a company's social
media presence by increasing the number of followers and interactions.
When someone shares content from your company, the post is exposed to their entire
network, which may include people who have not yet interacted with your brand. This gives
you an opportunity to reach new audiences and potentially convert them into customers.
Creating content that is compelling, entertaining, or educational can be an effective way to
increase interactions and gain followers on social media.

Greater Customer Loyalty and Retention - Viral marketing can help companies with
customer loyalty and retention by creating a sense of community and connection around a
brand. When a piece of content goes viral, it can bring people together with a common interest
or connection to the brand. This can lead to more people talking about the brand and engaging
with it on social media, which can create a sense of loyalty and connection among customers.
Another way that viral marketing can help with customer loyalty and retention is by creating
memorable and impactful content. When a message is shared widely, it is more likely to be
remembered by people, which can lead to more people associating the brand with that
content. When a brand's message is seen by a large number of people, it is more likely to be
trusted, and that feeling is associated with that brand. This can lead to more repeat business
and customer loyalty.

Higher Return on Investment (ROI)

Viral marketing can be a cost-effective way to reach large numbers of people. Rather than
spending a lot of money on advertising, companies can rely on word-of-mouth marketing to
get their message out.
Additionally, the potential return on investment (ROI) for viral marketing is often seen as
higher than for other forms of advertising because it is free and can reach a larger number of
people compared to paid campaigns.
Viral marketing campaigns require a lot of creativity, planning and execution, and a lot of
testing and iteration to be successful. It's not a guarantee that a viral marketing campaign will
lead to a higher return on investment; it's a potential outcome.

M-Commerce

Mobile commerce, often abbreviated as m-commerce, refers to the buying and selling of goods,
services, or information through mobile devices, such as smartphones and tablets, over
wireless networks or the internet. It involves conducting various transactions, including
online shopping, mobile banking, in-app purchases, mobile ticketing, mobile payments, and
more, using mobile applications or mobile-optimized websites.

Key Elements of M-Commerce:

• Mobile Devices: The primary tools for m-commerce are mobile devices like smartphones
and tablets. These devices allow users to access the internet, browse websites, use
applications, and conduct transactions on the go.
• Mobile Applications: M-commerce heavily relies on mobile applications (apps)
specifically designed for transactions. These apps provide a convenient and optimized
platform for users to shop, pay bills, book tickets, and perform various activities.
• Wireless Networks: Wireless connectivity, including mobile data networks (3G, 4G, 5G)
and Wi-Fi, enables users to access the internet and perform transactions from anywhere
without the need for a physical wired connection.
• Mobile Wallets and Payment Systems: Mobile wallets, digital payment apps, and other
mobile payment systems are essential components of m-commerce. They allow users to
securely store payment information, conduct transactions, and make mobile payments for
purchases.
• Mobile-Optimized Websites: Websites optimized for mobile devices ensure a seamless
and user-friendly browsing and purchasing experience for mobile users. These sites are
designed to load quickly and provide easy navigation on smaller screens.
• Mobile Banking and Financial Services: M-commerce includes mobile banking, where
users can perform various banking operations like fund transfers, bill payments, account
monitoring, and more through dedicated banking applications.
• Mobile Shopping Platforms: Mobile shopping platforms and apps enable users to browse
products, compare prices, read reviews, and make purchases directly from their mobile
devices.
Forms of M-Commerce:
• Mobile Shopping: Users can browse online stores, view products, and make purchases
directly through mobile-optimized websites or dedicated shopping apps.
• Mobile Payments: M-commerce enables users to make payments for purchases, bills, and
services using mobile payment apps, digital wallets, or integrated mobile payment systems.
• Mobile Banking and Finance: Users can manage their finances, perform transactions,
view account details, transfer funds, and pay bills through mobile banking applications.
• Mobile Ticketing and Reservations: Booking tickets for flights, trains, events, hotels, or
other services can be done through mobile applications, often with the option of mobile
ticket delivery.
• In-App Purchases: Users can make purchases within mobile applications, such as buying
virtual goods, unlocking features, or accessing premium content.
• Mobile Marketing and Advertising: M-commerce involves using mobile devices for
marketing activities like targeted advertisements, promotions, and engaging with
customers through mobile channels.

Advantages of M-Commerce:
 Convenience and Accessibility: M-commerce provides the convenience of making
transactions anytime, anywhere, as long as there's internet connectivity.
 Speed and Efficiency: Transactions in m-commerce are often quicker and more efficient
compared to traditional methods, reducing wait times and improving user experience.
 Personalization: M-commerce platforms can tailor recommendations and offerings
based on user preferences and past behavior, enhancing personalization.
 Cost-Effectiveness: M-commerce can significantly reduce operational costs for
businesses compared to traditional brick-and-mortar setups.
 Global Reach: M-commerce allows businesses to expand their reach to a global audience
without the need for physical locations in various regions.
 Real-Time Transactions and Updates: M-commerce provides real-time transaction
processing and instant notifications, keeping users informed about their activities and
purchases.

Limitations of M-Commerce
While mobile commerce (m-commerce) offers numerous benefits and opportunities, it also
presents certain limitations and challenges that businesses and users need to consider:
 Security Concerns: Security remains a significant concern in m-commerce. Mobile
devices can be more susceptible to security breaches, hacking, malware, and data theft due to
their portability and varied usage patterns.
 Limited Screen Size and Interface: The small screen size of mobile devices can limit the
overall user experience. Complex websites or intricate product displays may not translate well
to mobile screens, potentially affecting user engagement and purchase decisions.
 Dependency on Internet Connectivity: M-commerce heavily relies on internet
connectivity. Poor or unstable internet connections can hinder transactions, causing
frustration for users and potentially leading to abandoned transactions.
 Device and Operating System Fragmentation: The wide array of mobile devices with
different operating systems (iOS, Android, Windows, etc.) and versions can pose challenges in
app development and ensuring consistent performance across all devices.
 Limited Battery Life: Mobile devices have finite battery life, and m-commerce activities
can drain the battery quickly. This limitation can restrict the amount of time users spend
engaging in m-commerce activities.
 Privacy Concerns: Users are increasingly concerned about the privacy of their personal
information during mobile transactions. Trust issues may deter users from fully embracing
m-commerce, especially if they fear misuse of their data.
 Bandwidth and Speed Constraints: In certain regions or areas with limited network
infrastructure, bandwidth and speed limitations can affect the loading time of websites and
apps, impacting the overall user experience.
 Payment Processing Challenges: M-commerce involves various payment methods, and
integrating multiple payment gateways can be complex. Ensuring a seamless and secure
payment process across different platforms and devices is a challenge.
 Limited Input Options: Mobile devices have limited input options compared to desktops
or laptops. Typing on a small touchscreen can be cumbersome, potentially affecting form
filling, checkout processes, and user engagement.
 Cross-Platform Compatibility: Ensuring that an m-commerce platform functions
seamlessly across different operating systems, screen sizes, and device types can be
technically challenging and resource-intensive.
 Regulatory Compliance: M-commerce operations must comply with various regulations
related to data privacy, consumer protection, and electronic transactions. Adhering to these
regulations adds complexity and legal considerations.
 Adoption and User Resistance: Despite the widespread use of mobile devices, some
users, particularly older demographics, may still prefer traditional purchasing methods or
may be hesitant to adopt m-commerce due to unfamiliarity or resistance to change.

M-commerce continues to evolve, influenced by advancements in technology, changes in

consumer behavior, and innovations in payment systems. It has become a fundamental aspect
of modern commerce, influencing how businesses interact with customers and conduct
transactions in the digital age.
 Green Marketing

For the sustainability of the humankind, green marketing practice is the need of the hour. In
simple words, green marketing is the marketing of products which are considered not to be
harmful for the environment. Green marketing is a business practice that takes into account
consumer concerns about promoting, preservation and conservation of the natural
environment.

Green Marketing focuses on satisfaction of customer needs and wants with no or minimum
harm to the natural environment. It incorporates broad range of activities including product
modification, changes to the production process, packaging changes and modifying
advertising.

Green marketing has evolved over a period of time. According to Peattie, the evolution of
green marketing has three phases:
 First phase was termed as “Ecological” green marketing, and during this period all
marketing activities were concerned to help environment problems and provide
remedies for environmental problems.
 Second phase was “Environmental” green marketing and the focus shifted on clean
technology that involved designing of innovative new products, which take care of
pollution and waste issues.
 Third phase was “Sustainable” green marketing.

According to American Marketing Association “Green marketing is the marketing of products

that are presumed to be environmentally safe.”
According to Pride and Ferrell, Green marketing, also alternatively known as environmental
marketing and sustainable marketing, refers to “an organization's efforts at designing,
promoting, pricing and distributing products that will not harm the environment.”

Importance of Green Marketing

Green marketing is beneficial to the organisation as well to the society. The importance of
green importance can be explained as under:
1. Protection of environment
The main benefit of green marketing is sustainable development. Green marketing helps to
conserve and protect the environment from degradation. Many companies are now adding
eco-friendly features in their products. For example, ITC's 'classmate' brand of notebook
makes use of eco-friendly and elemental chlorine free paper. Chlorine, in its artificial form, has
played various environmental problems like depletion of global warming, ozone layer, acid
rain. Thus, by making a change in a manufacturing process, this company has taken a wide
step to protect the environment. In the similar way, many companies can protect the
environment by adopting green marketing.
2. Public health
Green marketing helps in reducing pollution. The technologies that are used under green
technology keep pollution to the minimum. This may improve the health of people. At the
same time, it reduces the harm caused to species. Tuna manufacturers modified their fishing
techniques because of the increased concern over driftnet fishing, and the resulting death of
dolphins. These days, the concept of green building is gaining importance. Such buildings are
efficient in their use of energy, water and construction materials. They offer better design,
construction, operation, maintenance and waste disposal. This reduces the adverse impact on
human health and the environment.

3. Competitive advantage
Many companies take up green marketing to gain competitive edge. By becoming more
environmentally responsible, they make efforts to satisfy their consumer needs better. The
Surf Excel detergent which saves water (advertised with the message—"do bucket paani roz
bachana") and the energy-saving LG consumers durables are examples of green marketing.

4. Less government control

Various regulations are framed by the government to protect consumers and the society at
large. The Indian government too has developed a framework of legislations to reduce the
production of harmful goods and by products. For example, the ban of plastic bags in Mumbai,
prohibition of smoking in public areas, etc. An organisation which adhers to such laws and
resort to green marketing attract lesser government control.

5. Social responsibility
Many companies follow societal concept of marketing. They give importance to achieve profit
related objectives as well as environmental objectives. They integrate environmental issues
into the company’s corporate culture. Cocacola, for example, has invested huge funds in
various recycling activities and has modified its packaging to minimize its environmental
impact.

6. Reduce cost
Companies following green marketing, make use of more effective production process. This
helps in minimizing waste. Thus, they are in a position to incur substantial cost savings. At
times many firms develop symbiotic relationship whereby the waste generated by one
company is used by another as a cost-effective raw material. For example, the fly ash
generated by thermal power plants, which would otherwise contributed to a gigantic quantum
of solid waste, is used to manufacture fly ash bricks for construction purposes.

8. Better image
The image of the company which offers green products is positive amongst the society as the
organisation’s policies, practices & products are in the interest of the society.

9. Benefits to consumers
Many consumers complain that price of green products is high. On the contrary, by buying
green products, they save their money indirectly in the long run. Many companies are using
green concept and lowering down the consumption of energy resulting in saving money
indirectly. For example, Voltas has a going green strategy by introducing many air
conditioners with a ‘green’ range. In this way, going green by the companies not only benefit
the environment but the consumers as well.

CHALLENGES OF GREEN MARKETING

1) New Concept: Green marketing is still a new concept in India. There is yet lack of
awareness regarding the benefits of green marketing. The consumer needs to be educated and
made aware of the environmental threats. The new green movement needs to reach the
masses and that will take a lot of time and effort.
2) Need for standardization: Some companies undertake Green marketing campaigns.
However, there is a lack of standardization to authenticate the claims made by them. Further,
there is lack of consistency to certify a product as organic. Unless some regulatory bodies are
involved in providing the certifications there will not be any verifiable means. A standard
quality control board needs to be in place for such labeling and licensing.
3) Cost Factor: Green products require renewable and recyclable material, which is costly.
Further Green marketing involves marketing of green products, green technology, green
power/energy etc. for which companies require a huge investment in R&D programmes for
their development and subsequent promotional programs. This leads to increased costs.
4) Convincing customers: Another major challenge for a company is convincing the
customers for selling their green products because the customers may not believe easily in
the company’s strategy of Green marketing. Hence the company should ensure that they
undertake all possible measures to convince the customer about their green product. One of
the best options is to implement Eco-labelling schemes to win the believe of customers.
5) Avoiding Green Myopia: Another major challenge of green marketing is green myopia.
Misjudging or overemphasizing the former at the expense of the latter can be termed ―green
marketing myopia. The first rule of green marketing is focusing on customer benefits i.e. the
primary reason why consumers buy certain products. It is not going to help if a product is
developed which is absolutely green in various aspects but does not pass the customer
satisfaction criteria. This will lead to green myopia. For avoiding green marketing myopia,
marketers must fulfil consumer needs and interests beyond environmental requirements.
6) Social auditing of green claims: Another problem of green marketing is lack of properly
adaptation of social auditing of the green claim. In other words, there does not exist proper
auditing procedure to verify the green claims. There is no legal authority to verify or evaluate
such claims.
7) Sustainability: Initially the profits of companies marketing green products are likely to be
low since renewable and recyclable products and green technologies are more expensive.
Green marketing will be successful only in long run.
8) Patience and Perseverance: The investors and corporate need to view the environment
as a major long-term investment opportunity. The marketers need to look at the long-term
benefits from this new green movement. It may require a lot of patience and no immediate
results. Since it is a new concept and idea, it will have its own acceptance period.
 Network Marketing

Network marketing, also known as multi-level marketing (MLM) or direct selling, is a business
model that involves a network of independent distributors or representatives who sell
products or services directly to consumers. These distributors not only sell the products but
also recruit others to become distributors, forming a hierarchical structure where
commissions are earned based on sales and recruitment efforts.

Key Components of Network Marketing:

1. Company/Product: A company with a specific product or service that is promoted

through a network marketing structure.

2. Independent Distributors: Individuals who join the company as independent

contractors to promote and sell the products or services. They earn commissions based on
their sales and the sales made by their recruited team.

3. Compensation Plan: A structure that outlines how distributors are compensated. It

usually includes commissions on personal sales, team sales, bonuses, and incentives.

4. Downline and Upline: The network of distributors is organized into a downline (those
recruited by a distributor) and an upline (the distributor and those who recruited them).

5. Recruitment: Distributors are encouraged to recruit new members into the network,
forming a team. They earn commissions and bonuses based on the sales made by their team.

6. Training and Support: Companies provide training and support to help distributors
grow their business and navigate the network marketing model effectively.

Key Characteristics of Network Marketing:

• Hierarchical Structure: Network marketing operates through a hierarchical structure,

where distributors are organized into levels or tiers based on their recruitment and sales
activity.

• Sales and Recruitment Incentives: Distributors are motivated not only to sell the
company's products but also to recruit new distributors. They earn commissions, bonuses,
and other incentives based on both their sales and the sales made by their recruited team.

• Leveraged Income: Distributors can earn income not only from their sales efforts but
also from the sales made by their downline (recruited team). This allows for the potential of
creating a passive income stream.
• Focus on Relationship Building: Successful network marketers often emphasize
building strong relationships and networks to expand their business. They leverage personal
connections and social networks to recruit new members and make sales.

• Flexibility and Entrepreneurship: Network marketing offers a level of flexibility as

distributors can often set their own schedules and work from home. It also provides an
entrepreneurial opportunity for individuals to run their own business without the need for
significant capital investment.

Advantages of Network Marketing:

• Low Start-Up Costs: Network marketing typically requires a low initial investment
compared to starting a traditional business, making it accessible to a broader range of people.

• Income Potential: Successful network marketers can achieve significant earnings

through commissions from product sales, team sales, and bonuses from meeting targets.

• Training and Support: Reputable network marketing companies often provide training
programs, marketing materials, and ongoing support to help distributors succeed in their
business.

• Flexibility and Work-Life Balance: Distributors have the flexibility to work at their own
pace, allowing for a better work-life balance and the ability to set their own goals.

• Community and Networking: Network marketing provides an opportunity to build a

community and network with like-minded individuals, fostering personal and professional
growth.

Criticisms and Challenges of Network Marketing:

• Pyramid Scheme Concerns: Network marketing is sometimes associated with pyramid
schemes, which are illegal and focus primarily on recruitment without a legitimate product or
service.

• High Attrition Rates: The industry often experiences high turnover rates as many
distributors do not achieve the desired success and may drop out, leading to a revolving door
of new recruits.

• Saturated Markets: Some markets may become oversaturated with distributors, making
it difficult for new distributors to establish a successful business due to intense competition.

• Perception and Credibility Issues: Network marketing may face challenges related to
its public perception and credibility, stemming from past scams or unethical practices in the
industry.
• Pressure for Recruitment: Distributors can feel pressure to recruit others, sometimes
focusing more on recruitment than on selling the actual products or services.

Network marketing is a business model that leverages a network of independent distributors

to promote and sell products or services. It offers potential for financial success, but
individuals interested in network marketing should carefully research and evaluate the
opportunity to ensure it aligns with their goals and values.

Marketing Ethics

Ethics are a code of values and principles that govern the actions of a person regarding what
is right versus what is wrong. Ethics is based on well-founded standards of right and wrong
that prescribe what humans must do. This is usually in terms of rights, obligations, benefits to
society and fairness or specific virtues.

Marketing ethics is an area of applied ethics which deals with the moral principles behind the
operation and regulation of marketing. It refers to the application of marketing ethics into the
marketing practices. Marketing ethics enables companies to market their product and
services in a more socially responsible way. Marketing ethics can be defined as “the basic
principles and values that govern the business that is engaged in promoting products or
services to customers.”

Ethical Values in Marketing

The marketing ethics which marketers are supposed to follow include:
 Honesty: Be forthright in dealings and offer value and integrity.
 Responsibility: Accept consequences of marketing practices and serve the needs of
customers of all types.
 Fairness: Balance buyer needs and seller interest fairly, and avoid manipulation in all
forms while protecting the information of the consumers.
 Respect: Acknowledge basic human dignity of all the people involved through efforts to
communicate, understand and meet needs and appreciate contributions of others.
 Transparency: Create a spirit of openness in the practice of marketing through
communication, constructive criticism, action, and disclosure.
 Citizenship: Fulfill all legal, economic, philanthropic and societal responsibilities to all
stakeholders as well as giveback to the community and protect the ecological environment.
Unethical Practices in Marketing
1. Unethical Advertising - There are some advertisers who resort to unethical advertising.
Advertising is considered unethical when:
 It gives false information.
 It degrades the rival’s product.
 It makes exaggerated or tall claims.
 It is against the national and public interest.
 It gives misguiding information.
 It conceals information that vitally affects human life.
 It is obscene or immoral etc.
Some of the unethical forms of advertising include advertising of harmful products, surrogate
advertising, advertising targeted at children, puffery, comparative ads and so on.

2. Unethical pricing - At times, marketers resort to unethical pricing. Some of the common
forms of unethical pricing include:
 Charging exorbitant prices.
 Price fixing: an agreement between business competitors to sell the same product or
service at the same price.
 Price discrimination: selling identical goods or services at different prices.
 Price war: commercial competition among rival companies wherein there is repeated
lowering of prices to undercut each other.
 Predatory pricing: selling a product or service at a very low price, intending to drive
competitors out of the market, or create barriers to entry for potential new competitors.
 Bid rigging: form of fraud in which a commercial contract is promised to one party even
though for the sake of appearance several other parties also present a bid.

3. Bad-mouthing rival products

Emphasizing the dark sides of rival’s products in order to attract customers towards their
products is another common unethical marketing practice followed by marketers. Several
marketers make use of comparative advertising. Comparative advertising is a marketing
strategy in which a company's product or service is presented as superior when compared to
a competitor's. Such advertising is undertaken to openly mock their rivals.

4. Product counterfeiting - Another growing area of concern in marketing is product

counterfeiting. Product counterfeiting is a form of consumer fraud. It involves the sale of fake
products which are deliberately made to look genuine. These can range from watches,
perfumes, cosmetics and electronic items such as pirate DVDs, CDs, computer software, games
etc. Such goods are being sold even online.

5. Marketing Research - During research process it is the responsibility of researcher to keep

the collected information secret. Misuse of this information creates unethical issue in
marketing. Certain companies share unofficially customer data with other companies without
the explicit permission of the customers. Such practices too are unethical in nature.

6. Unethical practices in personal selling - At times, sales people undertake manipulation

potential customers. Some salespeople are pushy and make unrealistic claims about the
product, while some give gifts or favor in exchange of purchase.

7. Celebrity endorsement - Celebrities are often used by marketers to endorse their

products. Celebrity endorsements can drive consumers to purchase a product that they might
not otherwise buy. Where a celebrity does not use a product or offers a dishonest opinion, a
clear ethical conflict exists. Similarly, when a celebrity says something misleading, it results
into unethical promotion.

8. Promotion of unhealthy products - Some companies manufacture and sell harmful

products such as alcoholic beverages and cigarettes. Although these are harmful, many people
consume them. Many governments have prohibited or strictly constrained their advertising.
By undertaking surrogate advertising, such products are promoted by marketers which is an
unethical practice. Further, some companies market unhealthy products high in fats, sugar
and salt such as soft drinks, junk food, potato chips etc.

9. Targeting to children - It is not ethical to target children with advertisements and

promotions. Advertising encourages them to be materialistic. They easily get carried away
and persuade their parents to buy products for them. It also makes parents of children who
cannot afford them appear inferior. Further advertising of unhealthy products encourages
children to consume fatty, sugary and salty food which creates obese and unhealthy
youngsters. Therefore such practices are unethical.

10. Dumping - With companies going global, competition has intensified tremendously. In
order to enter and capture new markets companies may resort to dumping i.e. offering
products at a very low price till the competition is wiped out from the market. Once the
competition ceases, these companies subsequently increase the prices of their products and
exploit the consumers. Dumping practices are unethical in nature.
11. Unethical distribution practices - Pushing vendors to buy more than needed is an
unethical practice in the distribution aspect of marketing. Also, asking vendors to reduce
display space of competitors or paying the vendor to carry more of their product is another
unethical distribution practice.
12. Spamming - Spamming refers to sending unsolicited emails to potential customers,
encouraging them to products or services. This is a common unethical marketing practice
done online. Delivering a sales message to potential customers is part of a marketer’s job, but
it's unethical to flood consumers with an onslaught of advertisements, especially they have
not given permission to contact them.
13. Others
 Gifts or price offer: This creates an impression that it is being given free of charge. But
the cost of the gift is covered by the price paid by the consumers.
 Hoarding or refusal to sell the goods to raise the price of those related goods.
 Selling products which have crossed the expiry date by repacking with a new expiry
date providing poor after sale services.

IMPORTANCE OF ETHICS IN MARKETING

The importance of ethics in marketing is significant and multifaceted:
1. Consumer Trust and Credibility: Ethical marketing builds trust and credibility with
consumers. When customers believe that a company and its marketing practices are truthful
and ethical, they are more likely to develop a long-term relationship with the brand. Trust is
a cornerstone of successful marketing and customer loyalty.
2. Customer Satisfaction and Retention: Ethical marketing focuses on meeting the genuine
needs and desires of customers. When customers are satisfied with the products or services
they receive and believe that they were marketed to honestly, they are more likely to remain
loyal to the brand and recommend it to others.
3. Brand Reputation and Image: An ethical approach to marketing helps in building a
positive brand reputation. Consumers are more likely to engage with and support brands that
are known for their integrity, social responsibility, and ethical practices. A good brand image
can lead to higher sales and a competitive advantage.
4. Legal Compliance and Risk Mitigation: Adhering to ethical marketing practices ensures
compliance with laws and regulations. Ethical behavior helps in avoiding legal troubles, fines,
or damage to the brand's reputation that can result from unethical or deceptive marketing
practices.
5. Sustainable Growth and Long-Term Success: Ethical marketing is aligned with long-term
sustainable growth. It promotes strategies that are environmentally sustainable, socially
responsible, and economically viable, fostering long-term success while benefiting both the
company and society.
6. Stakeholder Satisfaction: Ethical marketing considers the interests and well-being of all
stakeholders, including customers, employees, suppliers, and the community. When
stakeholders perceive a company as ethically responsible, they are more likely to support the
business, leading to a more harmonious relationship.
7. Customer Loyalty and Advocacy: Ethical marketing cultivates customer loyalty and
advocacy. Satisfied and loyal customers who believe in a brand's ethical practices are more
likely to become brand advocates, promoting the brand through word-of-mouth and social
media.
8. Employee Morale and Productivity: Ethical marketing practices positively impact
employee morale and productivity. Employees who work for a company that upholds ethical
values and conducts marketing with integrity are more likely to be motivated, engaged, and
committed to their roles.
9. Social Responsibility and Impact: Ethical marketing extends beyond the company's
interests to consider the broader impact on society and the environment. Engaging in socially
responsible marketing activities can contribute to the well-being of the community and the
environment.
10. Competitive Advantage: Companies practicing ethical marketing can gain a competitive
edge in the market. Consumers are increasingly considering the ethical behavior of companies
in their purchasing decisions, giving an advantage to businesses with transparent and ethical
marketing practices.

Ethics in marketing is not just about compliance with rules and regulations; it's about
fostering trust, sustainability, and responsible behavior throughout the marketing process.
Companies that prioritize ethical considerations in their marketing strategies are likely to
enjoy long-term success and positive relationships with their stakeholders.