Marketing Study Material

Module I: Introduction of Marketing and Law Firm Growth

Meaning of Marketing
Marketing is a comprehensive term. Marketing involves all those activities
that are involved in the flow of goods and services from producer to
consumer. Human efforts, finance and management constitute the primary
resources in marketing. Marketing focuses the resources and objectives of
an organisation on customer needs. Marketing comprises all activities
involved in the satisfaction of customer needs at a profit. Marketing
functions are undertaken to orient all parts of the business towards the
creation. of a satisfied customer. Thus, marketing means managing markets
to bring about exchanges and relationships for the purpose of satisfying
needs and wants.
Marketing STARTS with the customer – what HE wants to have and ENDS
with the customer – giving him what HE wants.

Definition of Marketing
Marketing includes those business activities which are involved in the flow
of goods and services from production to consumption. – Converse
Marketing is the creation and delivery of a standard of living to society.
- Paul Mazur
The process of planning and executing the conception, pricing, promotion
and distribution of ideas, goods and services to create exchanges that satisfy
individual and organizational objectives. – The American Marketing
Association
Thus, marketing refers to all the activities involved in the creation of place,
time, possession and awareness utilities and beyond.
History of Marketing
Marketing is a comparatively new field. The formal study of ‘exchange
processes and relationships’ – which is called marketing – started in the
1920s. To give you a clearer idea about marketing, let us take a look at the
historical process.
The need for marketing evolved as a historical process. In the early stages of
civilization, each person produced whatever he needed for himself.
Later came the age of specialization, and each person made a set of one
item and then exchanged the excess with the others for items that he
needed. This was the barter stage.
From there, civilization moved to the local market stage, where people
brought their produce to a particular spot and exchanged goods there.
In remote villages of a 3rd world country, local bazaars are the meeting
points where commodities are exchanged on certain days of the week. In
more advanced communities, the temporary bazaar has evolved into a
permanent feature with stalls and shops.
Later still, a need for money economy arose. The person who made the
bullock cart could not exchange this one piece for the different items that
he needed from different people. There had to be a common denominator
– and so a medium of exchange developed. This medium was beads at one
time, cows at another – and many other items, until now we use money as
a medium of exchange.
With the Industrial Revolution, which gave a fillip to the means of
production of goods, the speed of selling could not keep pace with the speed
of manufacture. Large quantities of stock started piling up. And a solution
had to be found. Thus arose the need for marketing.

Concepts in Marketing
The five competing concepts, by which companies are guided in their
marketing efforts, are:
1. PRODUCTION CONCEPT:
Production concept, which is based on the fact that consumers favour
products that are available and affordable. Concentration on production
efficiency and effective distribution networks outweigh the customer’s
actual needs and wants. This is used primarily when demand exceeds supply
and the focus is on finding production methods that can bring the price
down to attract more customers.
2. PRODUCT CONCEPT:
Product concept, which is based on ways to improve the quality,
performance, and features, packaging, schemes etc., to attract buyers. This
concept tends to spend too much time adding features to their products,
rather than thinking about what people actually need and want.
3. SELLING CONCEPT:
Selling concept, which places the focus on sales rather than what people
actually need or want. Most of the time the product is misrepresented which
results in high customer dissatisfaction. This is, invariably for the short run
success and quick profits.
4. MARKETING CONCEPT:
Marketing concept, this focuses on what people need and want more than
the needs of the seller. This concept is about the importance of satisfying
the customer’s needs to achieve company success. Products are developed
around those needs and wants.
5. SOCIETAL MARKETING CONCEPT:
Societal marketing concept, which not only uses the same concept as the
marketing concept, but also focuses around the products benefit to the
betterment of society as a whole. Greater emphasis is put on environmental
impacts, population growth, resource shortages, and social services.
Why Is Marketing Important?
Marketing is a significant part of any company. Marketing is essential for
creating brand awareness, strengthening sales, and retaining customers.
Most of the businesses today are adopting digital marketing for promoting
their goods and services. They offer their goods on online platforms.
Marketing is one sector which is expanding rapidly. There are many
purposes of core marketing, such as purchase, sale, finance, transport, etc.
1.PROVIDE EFFECTIVE INFORMATION
It is the most efficient way of interaction with your potential buyers.
2.THE BACKBONE OF 2.BUSINESS
Marketing is like fuel for a business, without it, a company cannot sustain
itself for long. It is used to fulfil every business requirement.
3.INCREASE SALES
It is important to boost sales and revenue.

4.SAVE COST & TIME

With this tool; a business can quickly reach a large audience. It helps in
creating brand awareness, improves sales and extends customer services.
5.TACKLING THE COMPETITION
There is growing competition in nearly all sectors of the economy. It is tough
for any business to create trust for their products and services. The role of
marketing is important to create a brand icon in the mind of customers.
6.CREATE TRUST
People want to buy from a company that has a trustworthy reputation.
Creating trust amongst the customers is a time-consuming process. Creating
trust among the customers helps the business to get loyal customers.
Effective marketing plays an important part in building a relationship
between the customers and the company.
7.INCREASES AWARENESS
Marketing serves in building awareness about the current products, new
accessories as well as the company which sells a particular product in the
market. It creates a brand image between the consumers.

Functions Of Marketing
Marketing functions are those specialized activities that a marketer must
perform in order to identify and source potentially successful products for
the market place and then promote them by differentiating them from
similar products. The important functions of marketing are discussed briefly
below:
1.RESEARCH & DEVELOPMENT FUNCTION
A marketer has to carry out adequate research to identify the size,
behaviour, culture, gender, demands etc. of the target market segment, and
then develop the products/services accordingly to meet and satisfy the
needs of target customers.
2.BUYING FUNCTION
The marketing department has to assist the purchase and supply
department by sending specifications of the materials required so as to get
timely and quality materials for production.
3.STANDARDIZATION & GRADING
Standardization means setting quality standards to achieve uniformity in the
product. It provides consistent quality assurance to consumers. Grading
means classifying the product on certain accepted benchmarks or bases
such as size, quality etc. Through grading, the marketer can get higher price
for quality product.
4. PACKAGING AND LABELLING
Packaging is traditionally done to protect the goods from damage in transit
and to facilitate easy transfer of goods to customers. But now it is also used
by the manufacturer to establish his brand image as distinct from those of
his rivals. Another activity involved with packaging is labelling. It means
putting identification marks on the package. Label is that part of a product
which contains information about the producer and the product.
5. BRANDING
It is the process of stamping a product with some identification name or
mark or a combination of both. Branding means giving a distinct individuality
to a product. Some popular brands are Airtel, Sony, Lux, Nirma etc.
6. PRICING
Determination of price of a product is an important task of a marketing
manager. Price is influenced by cost of product and service offered, profit
margin desired, prices fixed by rival firms, government policy, etc.
7. PROMOTION FUNCTION
The marketing manager must design adequate strategies to make known to
consumers about the availability of products in the market. Without this
function, products will remain in the hands of producers and will never reach
the consumers. Four important methods of promotion are advertising,
personal selling, publicity and sales promotion.
8. PHYSICAL DISTRIBUTION
This function involves the activities which are necessary to transfer
ownership of goods to customers and also making available goods at the
right place and time.
9. TRANSPORTATION
It provides the physical needs which facilitate the movement of persons,
goods and services from one place to another.
10. WAREHOUSING
To meet the expected demands of consumers, goods are produced or
procured well in advance and stored in warehouses till they are transferred
to customers. Warehouses protect the goods from any damage which may
be caused by any rodents, moisture, sun, theft, etc.
11. RISK TAKING FUNCTION
Risks are involved in almost all levels of marketing process. Risk taking in
marketing refers to the financial risk that is inherent in producing and
handling goods, including the possible loss due to a fall in prices and the
losses from spoilage, depreciation, obsolescence, fire and floods etc.
12. CUSTOMER SUPPORT SERVICES
This function relates to developing customer support services such as after
sales services, handling customer complaints and adjustments, providing
credit facilities, maintenance services, technical services etc. These services
provide maximum customer satisfaction and develop brand loyalty for a
product.

Fundamentals of Marketing
1. RESEARCH
Like the first step of any project, research is vital for every marketing
challenge. In order for an effective campaign, understanding your market
competitors, audience, barriers, and support all play an important role in
brand positioning.
2. COMMUNICATION
Active communication is what marketing is all about, plain and simple. If a
communications company is not actively communicating, There will be a
major problem for the company.
3. CREATIVITY
Whether its business-to-business, or business-to consumer, you must
always have your creative juices flowing! Marketing calls for high attention
to detail, and yes that means attention to creativity too. As an ad agency,
meet collectively for a box off and see what innovative concepts you can
apply to your marketing campaign.
4. EVALUATION
It is vital to continuously evaluate a marketing project. It's helpful to set
project benchmarks, timelines and deadlines throughout a marketing
campaign for guidance. Evaluation is key for not only your communication
platform, but for client relationships as well. As each meeting goes by, take
a step back and ask yourself what else should be doing for my client?
5. REVISION
Marketing requires continuous trial and error until you've effectively
reached your target market and communicate a message they want to hear.
Here at Apple Box, we work as a team, which makes the revision process fun
and highly conducive. As a newbie to the Pittsburgh marketing community,
it is extremely rewarding to gain new expertise and insights throughout a
revision process.
6. DELIVERY
This is where those timelines and deadlines come in handy. Once the
marketing campaign is ready, the final elements must be delivered carefully.
Upon final delivery it is important to assess the end results and see how new
concepts and communication tactics can be applied for next time.

Approaches to Marketing
1. PRODUCT OR COMMODITY APPROACH:
This involves study of marketing on commodity wise basis that is subject
matter under study is marketing of a commodity. Accordingly, we analyse
sources and conditions of supply, nature and extent of demand, pricing,
mode of transportation, storage, packing problems in selling the product
etc. for a commodity, say wheat or rice. Thus, we get a full picture of
marketing of a product original producer to ultimate consumer.
2. INSTITUTIONAL APPROACH (ALSO CALLED MIDDLEMEN APPROACH);
Here, a study is made about the institutions engaged in marketing.
Institutions engaged in marketing are-middlemen, importers- exporters,
agencies, warehousing. advertising, insurance, etc. Activities of each
institution forms part of marketing.
3. FUNCTIONAL APPROACH:
This approach gives importance to various functions of marketing. Here,
marketing is split into many functions like buying, selling, pricing,
standardisation, storage, advertising packing etc.
4. MANAGEMENT APPROACH:
This approach is mainly concerned with how managers handle specific
problems and situations through current marketing practices. Generally,
two factors are distinguished-Controllable and Uncontrollable. Controllable
factors include price, advertisement. Uncontrollable factors are economic
and political and limit the marketing opportunities. Managerial approach is
concerned with a study of uncontrollables and then taking decisions for
controllables within the scope set by uncontrollable factors.
5. SYSTEM APPROACH:
Here, marketing linkages inside as well as outside the firm are examined.
Inside the firm there is a linkage between engineering, production, price and
marketing. On the basis of feedback, the production process is altered so
that desired output can be produced.
6. Economic Approach:
This approach deals with problems of demand, supply and price. However,
this is a narrow approach because it alone does not give the whole idea of
marketing
7. LEGAL APPROACH:
This approach deals with the regulatory aspect of marketing. For example,
marketing activities in India are largely controlled by the Sale of Goods Act.
Carriers Act, Consumer Protection Act, etc. As this approach concentrates
on legal aspects, it gives only a partial idea of marketing.
8. 'OBSERVING CONSUMERS AS THEY SHOP OR USE A PRODUCT’ APPROACH:
Observing consumers as they shop or use a product is often deeply revealing
about their behaviours and motivations. This kind of research is closely tied
to behavioural Economics, a school of thought that seeks to understand the
way consumers actually make decisions. It's also a pillar of design thinking,
which puts the customer at the centre of a system of interactions with the
brand. Those who invest in big data analytics often achieve up to 10% sales
growth, 5% higher return on sales, and a margin uplift of 1-2%. Social media
allows companies to listen in on unfiltered conversations about consumer
habits.
DIFFERENCE B/W MARETING, MARKET AND SELLING

Objectives of Marketing
1. CUSTOMER SATISFACTION:
The marketing manager must study the demands of customers before
offering them any goods or services. Selling the goods or services is not that
important as the satisfaction of the customers’ needs. Modern marketing is
customer-oriented.
2. GENERATION OF PROFITS:
The marketing department is the only department which generates revenue
for the business. Sufficient profits must be earned as a result of sale of want-
satisfying products. If the firm is not earning profits, it will not be able to
survive in the market. Moreover, profits are also needed for the growth and
diversification of the firm.
3. INCREASE OF MARKET SHARE:
Every business aims at increasing its market share, i.e., the ratio of its sale
to the total sales in the economy. For instance, both Pepsi and Coke
compete with each other to increase their market share. For this, they have
adopted innovative advertising, innovative packaging, sales promotion
activities, etc.
4. CREATION OF GOODWILL AND PUBLIC IMAGE:
To build up the public image of a firm over a period is another objective of
marketing. The marketing department provides quality products to
customers at reasonable prices and thus creates its impact on the
customers. The marketing manager attempts to raise the goodwill of the
business by initiating image-building activities such as sales promotion,
publicity and advertisement, high quality, reasonable price, convenient
distribution outlets, etc.
 Module II: Market Segmentation

Meaning
A market is the aggregate of consumers of a given product. Consumers differ
in their characteristics and buying behaviour. So, a market can be divided
into distinct groups of buyers with different needs and characteristics.
Different market segments occur within a market. A market segment will
consist of buyers who seek the same product or service offering. Historically
speaking, the concept of market segmentation emerged in the 1960s. Sellers
found it difficult to serve customers with varying requirements. They
realised the need to identify market segments so that they could serve more
effectively.

Definitions
"Market segmentation is the process of dividing the total heterogeneous
market for a product into several segments, each of which tends to be
homogeneous in all significant aspects" - William J.Stanton
"Market segmentation is dividing a market into distinct group of buyers with
different needs, characteristics, or behaviour who might require separate
products or marketing mixes". - Philip Kotler

Advantages
Market segmentation consists of identifying a sufficient number of common
buyers. It enables sub-division of the total aggregate demand for a product
into economically viable segments. Segments fall between the two
extremes of total homogeneity and total heterogeneity. Segments benefit
the marketer in several ways which may be discussed under four heads: 1.
Proper choice of target market 2. Tapping a particular market 3. Efficient
and economic marketing efforts; and 4. Benefits to the customers.
1. PROPER CHOICE OF TARGET MARKET:
The market for any product is made up of several segments. A market is the
aggregate of consumers of a given product. Consumers are not a
homogeneous lot. They vary in their characteristics and buying behaviour.
Thus, many differing segments exist in a market. Market segmentation helps
the marketer divide the heterogeneous market. It is possible to distinguish
one customer group from another.
2. TAPPING A PARTICULAR MARKET:
Segmentation enables the marketer to understand the needs of the
customers and serve them well. Prediction of the likely response from each
segment is possible. With homogeneous responses from each segment,
marketer finds it easy to develop an appropriate marketing programme. By
tailoring the marketing programmes to individual market segments,
marketers perform their tasks effectively. Specialisation can be achieved in
product distribution, promotion and pricing for catering to a particular
segment.
3. EFFICIENT AND ECONOMIC MARKETING EFFORTS:
Segmentation makes marketing efforts both efficient and economic.
Marketers segment the market and try to fulfil the needs of that segment.
It helps in designing the kinds of promotional devices that are effective from
the view point of customers. Marketing efforts are focused on-the well-
defined needs of the segment. Thus, marketing efforts undertaken by the
marketer become more productive. They help the marketer to evaluate the
results of his marketing programme. Appropriate timing for the introduction
of new products, advertising etc., could be easily determined.
4. BENEFITS TO THE CUSTOMER:
Segmentation benefits not only the marketer but the customer as well. It
distinguishes one customer group from another within a given market. It
helps the marketer concentrate on the fulfilment of the well-defined needs
of the specific segment. Now-a-days, segmentation has attained a high
degree of sophistication.
5. IDENTIFYING NICHE MARKETS
Similarly, your research into segmentation may help you recognize areas of
the market you’d not considered before. This might even lead to the
development of new products that are aimed specifically towards these
markets.

Disadvantages
Though market segmentation offers a lot of advantages, it has some
limitations with respect to cost and market coverage.
1. UNPROFITABLE MARKET:
Sometimes, market segmentation becomes an expensive proposition. A
marketer experiences considerable difficulties, as he has to develop
different marketing mixes for different segments. Moreover, mass
production is much cheaper than making a variety of products.
Even major players like Bata have erred in market segmentation. In the early
1990s, Bata introduced a few brands with high price tags in the high-end
segment of the Indian footwear market. This segment was not a sizeable
one for Bata. This segment accounted for a mere 5-10 per cent of the Indian
footwear market. The sales trend could not facilitate mass production.
Having incurred a loss in the high-end segment, Bata had returned to the
mass segment.
2. MARKETING EXPENSES:
Refining the marketing strategy to explore the customer base in detail
means more money for marketing and research. Promoting these items to
different customer bases will also add to a company’s growing costs.
3. ERODES PROFITABILITY:
Promotional expenses, costs of keeping adequate inventory of each variety
of goods etc., also go up, eroding profitability.
4. PRODUCTION ISSUES:
Smaller market segments also mean fewer buyers for a company’s products
and possibly fewer profits. Producing multiple versions of products to meet
these segments’ individual needs can also run up costs, as can maintaining
a consistent inventory of these narrowly focused products.

The Costs of Market-Segmentation:

As noted above, a market-segmentation strategy offers benefits to both the
organizations and the consumers. Marketing segmentation strategy
involves certain costs to arrive at these benefits which we cannot afford to
forget.
1. PRODUCT COSTS:
In order to accommodate each market segment, the firm goes ahead with
designing a specific product. Designing work may be in the range of mere
change in label to complete rethinking of entirely new products. It involves
a good deal of research and development activities as a product is to be
separated for each market segment.
2. PRODUCTION COST:
Though technological break-through have made it possible for many firms
to reduce the number of units needed to achieve economies of scale, still
there persists a problem of high productivity costs. The firm is expected to
achieve sufficient sales volume in each market segment to justify the costs
involved in separate production runs. In case the sales in each segment are
insufficient to keep production lines operating continuously, the firm may
be either forced to stop the production periodically or to shift the line over
to the production of products for other market segments Both of these
activities are quite expensive.
3. PROMOTION COSTS:
Every organization has to develop a promotion strategy that fits each market
segment. It is but natural that multiple strategies require huge expenditure
on both human and financial resources to design different ads and place
them in various media. Multiplicity of ads deprives the firms of quantity
discounts and concessions. This results in mounting promotion costs.
4. INVENTORY COSTS:
More the segments the firm wants to serve, the larger the inventory costs.
These inventory costs work out higher because of two basic reasons namely:
❖ Larger selection of products will force the firm to maintain more and
more records covering location and quantity of merchandise.
❖ The firm must maintain increased buffer stock for normal demand and
increased safety stock for unpredicted demand levels.
5. MANAGEMENT COSTS:
Market segmentation strategy consumes a good deal of valuable time of management. The
management is to design and implement a coordinated marketing strategy for each market
segment. Such a coordinated strategy deals with product pricing, promotion and distribution. Many
organizations employ specialized services of a product or market manager whose main responsibility
is to develop and monitor organization strategies.
Bases for Market Segmentation
Markets can be segmented using several relevant variables. These variables
can be divided into two broad categories, namely, consumer characteristics
and consumer responses

1. GEOGRAPHIC SEGMENTATION
Geographic segmentation is based on geographical units such as nations,
states, regions, zones, districts, cities, rural areas, etc. Geographic
segmentation facilitates planning and administrative processes. It is
convenient for the marketers to sub divide the country into areas in a
systematic way. Markets for national brands are split up into regions and
sales territories are drawn, either state wise or district wise. Consumers'
perception and outlook vary vastly within a country. For example, In India,
the attitude and outlook of consumers from North eastern state and from
deep South differ vastly. The languages spoken also vary. So, it is essential
to release advertisements in regional languages, such as in Telugu for
Andhra Pradesh, in Assamese for people of Assam, in Tamil for people of
Tamil Nadu and so on. Glaring differences are found in the attitudes of rural
and urban population. There are different types of households in
metropolitan cities who enjoy the benefits of better distribution channels.
Their buying patterns are different. So, they have to be approached
differently.
2. DEMOGRAPHIC SEGMENTATION
In demographic segmentation, the market is divided into groups on the basis
of demographic variables (age, family size, family life cycle, gender, income
occupation, education, religion, race, generation etc). Consumer wants
preferences, and usage rates are dependent on demographic variables.
Moreover, variables are easy to measure. Demographic data are required to
estimate the size of the target market. The important demographic variables
used for segmentation are explained below.

(A) AGE:
Age is the most important variable used in segmenting the market.
Consumers' attitude change with age. Extensive research has been
conducted on the age factor. The age segmentation is used for milk,
chocolates, cool drinks, etc. Ford Motor company designed its Mustang
automobile to appeal to young people. On the contrary, it was demanded
by all alike, including the older generation.
(B) GENDER:
The wants, needs and perceptions differ according to gender. Products like
cosmetics, jewellery etc., are widely used by women. Cigarette
advertisements focus on men. Also, men are the main users of tools and
other implements. The automobile industry recognises gender
segmentation. Certain features of car appeal to women car owners. Two
wheelers like TVS Scooty, Bajaj Spirit etc., are aimed at the women segment.
Separate magazines like Women's Era Femina are published to cater to the
needs of women.
(C) INCOME:
Income segment is another variable in the car market. Inexpensive cars are
manufactured for middle income group and luxury cars for those in high
income bracket. But income is not always the basis for purchase of a given
product. It has been proved that blue collar workers purchased more colour
television sets. It was cheaper for them to buy the colour-television sets
than to buy other expensive entertainment providers which are generally
bought by upper income group.
(D) OCCUPATIONS:
The nature of occupation determines the need of many products. Service
personnel such as electricians; computer service engineers etc., who travel
widely were among the early buyers of cell phones. A doctor owns a car to
attend patients in emergency. An IT professional needs a PC at home for
working from home. Corporate executives attending conferences have lap
tops. Thus, many needs of the products are often associated with relevant
occupations of the consumers.
(E) SOCIAL CLASS:
Different social classes exist in a society. Each class prefers to maintain its
status. Status has a strong influence on preference in cars, clothing, home
furnishing and leisure activities, etc. So, companies design products and
services for specific social classes. For example, manufacturers produce
ordinary, luxury and extravagant products for different classes
(automobiles, furniture, etc). Lower class wants moderately priced goods
while higher classes consider status important and generally do not mind
the price.
3. PSYCHOGRAPHIC SEGMENTATION
Emanuel Demby coined the term psychographics. According to him,
psychographics consists of psychological, sociological and anthropological
factors. Buyers may be segmented on the basis of psychographic variables.
These variables include lifestyle, personality and values. These
characteristics lead to psychographic segmentation.
A) LIFESTYLE
People express their lifestyles through the products and services they use.
Some people are traditional while others are modern. Companies marketing
cosmetics, alcoholic beverages and furniture make use of lifestyle
segmentation". Titan watches segmented buyers on lifestyle creating a
brand "Titan Fastrack". For example, in 1990s, car buyers were segmented
on the basis of lifestyle. As a result, several new models of car were
introduced (Baleno GLX, Estate from Maruti, Nubira Wagon from Daewoo,
Corsa station wagon from GM, Opel Swing from GM, Siena Weekend from
Fiat). However, some companies have also failed using lifestyle
segmentation. For example, Nestle introduced a special brand of coffee
(decaffeinated coffee) for "late nighters". But this had miserably failed.
B) PERSONALITY
Personality is another psychographic variable which is used to segment the
market. Marketers showcase their products using brand personalities that
correspond to consumer personalities. Buyers of Ford cars were considered
independent and alert to change. Chevrolet owners were found to be
conservative.
C) VALUES
Marketers use values to segment the market. Values are beliefs which
determine people's product choices and desires. Values thus underlie
people's preferences in the long run. Marketers use values to influence the
purchase behaviour of people. By appealing to people's inner values, it is
possible to influence their exterior outlook.
4. BEHAVIOURAL SEGMENTATION
Markets can be segmented on the basis of buyer behaviour. Customer
respond differently to a product depending upon their attitude and
knowledge towards the product. Apart from this, variables such as special
occasion benefits, user status: usage rate: loyal status, buyer readiness
state, etc., cause variations in buyer behaviour.
(A) OCCASIONS:
There are several occasions that prompt us to buy a product or use a service.
They may be regular, frequent, special, etc. For example, air travel is closely
related to business or vacation. Corporate travellers rely on airlines for
speedy travel. Affluent people too prefer air travel during vacations. To take
advantage of these aspects domestic airlines like Kingfisher, Air Deccan have
agreements with leading MNCs like Infosys and offer competitive rates,
ensuring their patronage. Besides, airlines also offer concessional tour
packages during vacations in order to encourage air travel by family
members.
(B) BENEFITS:
A product is a bundle of utilities. Consumers buy product or use a service to
satisfy their needs. So, buyers can be classified according to the benefits
they seek. The buyers of toothpaste may be segmented on the basis of tooth
decay and freshness, the benefits which they expect from the product.
(C) USER-STATUS:
The users of a product are classified into several kinds like non-users, ex-
users, potential users, first time users and regular users of a product. Blood
banks instead of relying on regular donors to supply blood, also conduct
blood donation camps to tap first time donors. The Rajaji Government
Hospital, Madurai conducts blood donation camp at various colleges and
educational institutions. The marketing strategy is focused on tapping the
youth which is willing to donate blood.
(D) USAGE RATE:
Segmentation on the basis of user rate is called volume segmentation. On
the basis of the volume of product bought, buyers may be classified into
light, medium and heavy product users. Generally, heavy users constitute a
small percentage of market but account for a high percentage of total
consumption. Earlier bank followed macro credit policy where heavy
borrowers of funds were focused. Heavy users have their own profile in
terms of demographic, psychographic and media habits.
(E) LOYAL STATUS:
Consumers differ in terms of their loyalty to specific product items. On the
basis of loyalty, buyers may be segmented into four groups.

Consumers who buy one brand at all the time are known as "Hard core
loyals". If their favourite brand is not available, they will wait until that
particular brand becomes available. It is not possible to lure them to a
competitive brand. They have a strong brand image about the product. The
ultimate aim of the marketing strategy is to convert the buyers into hard
core loyals.
Split loyals are those buyers who are loyal to two or three brands. If one
brand is not available, they will buy another brand.
Shifting loyals are those buyers who shift from one brand to another.
Generally, their loyalty to a particular brand is based on a short period only.
Switchers show no loyalty to any brand. Switchers may be influenced by
offer of discounts, etc
(F) BUYER READINESS STAGE:
Buyers are in different stages of readiness to buy a product. State of
readiness implies how much a person is prepared to buy a product of a
particular brand. The buyer may be unaware, aware, informed, interested,
desirous and intending to buy a product. Customers at a given point of time
are either totally unaware or aware of a product. If they are aware, then the
extent of knowledge about the product they have may differ. So, the
number of customers who are in different stages of buying determines the
marketing programme. AIDA formula (Attention, Interest, Desire and
Action) holds good here. The marketing programme should draw the
attention of the people to the product. Then the attention should be
converted into interest and interest into desire. The ultimate aim of the
marketing programme is to convert the desire of the people to buy the
product.
(G) ATTITUDE
This is a combination of the religious and cultural backgrounds of the target
market. This psychographic variable is somewhat tricky and complex
because every consumer has a different attitude and worldview as
influenced by his or her background. Regardless, you can still use this
variable to map out different segments in your target market.

DIFFERENCES B/W MARKET SEGMENTATION AND PRODUCT

DIFFERENTIATION

Marketing Mix
Marketing mix is the policy adopted by the manufacturers to get success in
the field of marketing. Those days, when goods were matched with the
market, have gone. The modern market concept emphasises the importance
of the consumer's preference. Manufacturers take various policies to get
success in the market and the marketing mix is one of the important policies.
In marketing planning, we make use of marketing information to assess the
situations. Therefore, a manufacturer first analyses the nature of the
consumer's needs and then plans his product to give satisfaction to the
consumers. All the marketing effort focuses attention around the
consumer's need. The management, therefore is concerned with the
markets and market behaviours to identify the target groups of consumers
through market information. Then the management plans to meet the
consumer's needs and to face the competitors. All these programmes
involve a number of functions, which are to be planned carefully; and
plannings need analysis of the market to take a decision prediction and
forecasting, to the future needs of the public. Marketing departments
perform the operations and the market offering mix is the result. Thus, the
identification of demand and supply involves various functions of marketing
to attain success in the market and the combination of these functions is
known as marketing mix.
Definition
According to Borden, "The marketing mix refers to the appointment of
efforts, the combination, the designing and the integration of the elements
of marketing into a programme or mix which, on the basis of an appraisal of
the market forces will best achieve an enterprise at a given time". According
to Stanton, "Marketing mix is the term used to describe the combination of
the four inputs which constitute the core of a company's marketing system
the product, the price structure. the promotional activities and the
distribution system."

7 Ps OF MARKETING
1. PRODUCT
Product means the goods and services a company offers to the target
market. A product is a bundle of tangible and intangible attributes. The
product element of the marketing mix includes planning, developing and
producing the right type of products and services. product mix, decisions are
taken on design of the product, size and weight of the product, quality of
the product, volume of output, brand name, packaging, product range,
product testing, warranties and after sale service.
2. PRICE:
Price is the amount of money which customers pay to buy a product. Price
is an important element in the marketing mix. Price is the only tool among
the four Ps which generates revenue for marketer. The price, therefore,
needs to be based on certain parameters to achieve certain objectives. Price
mix involves decisions regarding base price, discount, allowance, freight
payment, credit, etc.
3. PROMOTION:
Promotion means activities that communicate the merits of the product and
persuade target customers to buy it. The promotion mix consists of
advertising, personal selling, sales promotion and public relations. No single
method of promotion is effective. So, the promotional campaign involves
two or more promotional methods. Promotional mix is based on the nature
of the product, type of customers, the promotion or budget, nature of
demand, etc.
4. PLACE:
Place includes a company's overall plans to make the product available to
target consumers. Under this, the management should select and control
the trade channels to reach the market at the right time. Distribution system
is to be designed to physically handle and transport the products through
intermediaries.
5. PEOPLE:
Excellent customer service not only converts to sales, but can increase your
customer base by referrals. Acquiring these referrals by people who love
your brand can also be a great example of how your marketing efforts can
support your sales process. It’s important that everyone who represents
your brand or deals with customers – including the non-human chat bots in
the websites are fully trained sales professionals with an intimate
knowledge of your product and how it will improve the lives or solve the
problems of your customers.
6. PROCESS
The process of delivering your product to the consumer should be designed
for maximum efficiency and reliability, but may also include features that
are in line with your brand, such as being environmentally or sustainably
focused. With the rise in online shopping, digital partnerships and logistics
have become an essential part of the marketing mix.
7. PHYSICAL EVIDENCE
Physical evidence incorporates aspects that proves your brand exists and
that a purchase took place. Examples of proof that your brand exists can
include things like a physical store or office for your business, a website if
your business operates solely online, and printed business cards that you
exchange when meeting people. Examples of proof of purchases can include
physical or digital receipts, invoices, or follow-up email newsletters that you
send to customers as a retention exercise.

TARGET MARKETING
Target marketing is researching and understanding your prospective
customers’ interests, hobbies, and needs so that you can focus your
message and your marketing budget on the specific segment of the market
that is most likely to purchase your product or service.
Identifying the target market is part of business planning. For as long as the
business continues, it is always important to be thinking about how to better
understand the ideal prospective customers.
Customer’s needs and wants can be better understood by answering the
questions Who needs your product or service? Where are your customers?
Why do your customers make the choices they make? How do your
customers behave?
[Refer ‘bases of market segmentation’ who – demographics, where –
geographic, why – psychographics and how – behaviours]

Product Positioning:
Product positioning is a form of marketing that presents the benefits of your
product to a particular target audience. Through market research and focus
groups, marketers can determine which audience to target based on
favourable responses to the product.
Research can also determine which product benefits are the most appealing
to them. Knowing this information helps streamline marketing efforts and
create effective marketing messages that drive more leads and sales. It also
helps differentiate the product or service from the competition in the
marketplace.
Product positioning is an important component of any marketing plan, but
it doesn’t have to be limited to one audience. For example, a product may
have a main target audience and also a secondary audience that is also
interested in the product, but perhaps in a different way. Each audience will
find the product appealing for different reasons, which is why it’s important
to tailor marketing messages to focus on the benefits each audience values
most.
EXAMPLES OF PRODUCT POSITIONING
Product positioning can involve a number of different elements. A product
can be positioned in a favourable way for a target audience through
advertising, the channels advertised through, the product packaging, and
even the way the product is priced. For example, market research may have
revealed that the product is popular among mothers. What do they like
about the product? What should be highlighted about the product to attract
them? And where should the product be advertised to reach them? With
the answers to these questions, an effective marketing campaign can be
created to send benefit-driven messages to the target audience wherever
they may be (such as Facebook, where targeted ads can be purchased based
on demographics and interests).
PRODUCTION POSITIONING FOR SMALL BUSINESSES
While larger corporations have the budgets for extensive market research,
small businesses may have a difficult time coming up with the time or money
to do it in depth. Instead of running focus groups and doing tons of research,
a small business owner can simply ask their network for their opinions. If
they collect information on customers and their purchases, future product
positioning strategies can be based on actual sales data. This may even be
more effective than basing product positioning on the opinions of potential
customers, such as in a focus group, because this positioning is based on real
behaviour rather than speculation.
In conclusion, a huge marketing budget is not necessary to take advantage
of market research and effective product positioning. Understanding the
target audience and how to communicate the benefits of a product to them
in a compelling way is the first step toward a solid marketing plan.
 Module III: Product Decisions

Product
A product is something that is manufactured for sale in the market.
Customer needs are met by the usage of products. Product is one of the
main components of marketing-all marketing activities revolve around the
product. Products can be tangible or intangible. Tangible products are
known as goods while intangible products are called services.
The term product can be understood in a narrow as well as broad sense. In
a narrow sense, it is a set of tangible physical and chemical attributes
assembled in an identifiable and readily recognizable form.
In a broader sense, it recognizes each separate brand as a separate product.
A product can be defined as- "A good, idea, method, information, object, or
service that is the end result of a process and serves as a need or want
satisfier. It is usually a bundle of tangible and intangible attributes (benefits,
features, functions, uses) that a seller offers to a buyer for purchase."
According to W. Alderson "A product is a bundle of utilities consisting of
various product features and accompanying services".
According to Philip Kotler "A product is anything that can be offered to a
market for attention, acquisition, use or consumption that might satisfy a
need or want".

Concept of Product
A product is a bundle of tangible and intangible attributes. It can be anything
that satisfies a need or want. It can be offered in an exchange. Products
include more than just tangible goods. Broadly speaking, products include
physical objects, services, persons, places, organisation, ideas or mixes of
these entities.
A company offers to the market both tangible goods and services. The offer
may be 1. Pure tangible goods 2. Pure services 3. Tangible goods with
accompanying services 4. Hybrid offer, and 5. Service with accompanying
minor goods.
An offer may consist of a pure tangible goods such as soap, tooth paste, etc.
No services will accompany the product. The other extreme of the offer is
pure services. Financial services, legal advice, consultancy services etc., are
primarily services. Company's offer may consist of a tangible good with
accompanying services and they are not accompanied by any product. For
example, Maruti Udyog's offer includes besides car sales, repairs and
maintenance services. warranty fulfilment, etc. Restaurants offer food and
extend excellent service. Sometimes, an offer consists of a service with
accompanying minor goods. For example, airlines primarily offer
transportation service. But for its customers, its offer includes tangibles such
as food, drinks, chocolates and newspapers,
Classification of goods

I. Consumer goods
Consumer products are purchased by the final consumers for personal,
family or household use. For example, a consumer purchases for his
personal use calculators, two-wheeler, tooth paste etc. There are numerous
consumer goods. On the basis of shopping pattern or habits, consumer
goods may be classified into four categories: (1) convenience goods (2)
shopping goods (3) speciality goods and (4) unsought goods.
1. Convenience goods
Customers purchase certain goods frequently, immediately and with
minimum effort. These are known as convenience goods. For example,
detergents, tooth paste, newspaper, journals etc. Since consumers are
familiar with the characteristics of consumer goods, they purchase these
goods according to their convenience. Convenience goods are further
divided into staple goods, emergency goods and impulse goods.
(a) Staples: Staples are those convenience goods which are bought on a
regular basis. Perishables like milk bread, meat etc., are frequently bought.
The marketer uses an intensive distribution network to sell staples.
(6) Impulse goods: Impulse goods are bought by consumers without any
planning Shoppers might not have thought of buying them until they see
them, neatly arranged in a shop. Magazines, candy, snacks, etc., are
considered impulse goods.
(c) Emergency goods: Purchase of certain goods arises out of an urgent
need. Rain coats and umbrellas are bought more during rainy season.
Emergency goods are placed in many outlets in order to enable the
customers to buy them at once.
2. Shopping goods
Shopping goods are bought with planned efforts. Customers buy shopping
goods only after a careful comparison of style, suitability, price etc., with
other competitive brands. In the process of selection, customers step into
several shops and purchase the goods only when they are thoroughly
satisfied with them. Furniture, clothing, used cars, major appliances are
some examples of shopping goods. Shopping goods can be homogeneous
shopping goods and heterogenous shopping goods.
(a) Homogeneous shopping goods: Homogeneous shopping goods are alike
in many respects. Their features are more or less the same. For example,
refrigerators, washing machines, mobile handsets. Though homogeneous
goods have similar characteristics, their prices differ to justify shopping
comparisons.
(b) Heterogeneous shopping goods: Heterogeneous shopping goods non-
standardised goods. They differ in product features and services and are
available at different price ranges. So, the need for a careful comparison of
product features with prices naturally arises. Shops selling heterogeneous
goods generally carry a wide assortment to satisfy individual tastes. The
sales persons dealing with heterogeneous goods are well trained. They are
competent enough to advise customers selecting the right goods.
3. Speciality goods Speciality:
Goods are bought with special effort. Sellers offering speciality goods do not
need any convenient location. Interested buyers will travel far to buy
speciality goods. But they must properly be informed of the availability of
speciality goods. Cars, services of hospitals etc., are some examples for
speciality goods and services.
4. Unsought goods:
Potential buyers do not think of buying certain goods until they become
aware of them. So, goods are not sought until the consumers become aware
of them. Life insurance policies, plots, services of doctors and advocates are
the examples for unsought goods. Generally, unsought goods require
advertising and personal selling support.
II. Industrial goods
Industrial goods are used for manufacturing other products. They can be
classified in terms of their entry in the production process such as 1.
Installations 2. accessories 3. raw materials 4. component parts and
materials and 5. Supplies.
1. Installations:
Installations are long lasting goods which facilitate developing or managing
the finished products. Generally, installations are capital items. Installations
include buildings and equipment. Buildings are factories and offices while
equipment include portable factory equipment such as generators, drill
presses, hand tools, lift trucks and other office equipment
2. Accessories:
Accessories are also capital goods but they have no long run impact on the
firm as installations. They are less expensive and highly standardised. These
goods are movable and require less decision-making.
3. Raw materials:
Raw materials may be divided into farm products and natural products.
Farm products include wheat, cotton, fruits, livestock etc., while natural
products include fish, iron ore, crude petroleum, etc. Marketing of farm
products calls for assembling, grading, storage, transportation and selling
services. Their perishable character requires special marketing practices.
Natural products are limited in supply. Generally, they are bulky and must
be moved from producer to industrial users.
4. Component parts and materials:
Manufactured parts and materials are known as component parts and
materials. Component materials include iron, yarn, cement, wires, etc.
Component parts include small motors, tyres, castings, etc. Component
parts enter into finished product with no further change. For example, small
motors are put into grinders and mixies and tyres are put on automobiles.
Most component parts and materials are directly sold to industrial users.
5. Supplies:
Basically, supplies facilitate developing the finished products. Supplies are
of two kinds, namely, (a) operating supplies; and (b) maintenance and repair
items. Lubricants, coal, writing paper, pencils, etc., are operating supplies.
Maintenance and repair items include paint, nails, brooms, etc. Supplies are
normally marketed through intermediaries. Such indirect marketing is due
to the low unit value of supplies and geographic dispersion of customers.

Product Line
"A product line is a group of products that are closely related, either because
they function in a similar manner, or are sold to the same customer groups,
or are marketed through the same types of outlets, or fall within given price
ranges." According to Stanton. "A broad group of products. intended for
essentially similar uses and possessing reasonably similar physical
characteristics, constitute a product line." In other words, a broad group of
products, which are meant for essentially similar uses and reasonably similar
physical characteristics, constitute a product line. For instance, a range of
toilet soaps is product line.

Product Mix
A product mix is also known as product assortment. It is the set of all
products and items that a particular seller offers for sale. The product mix is
composed of several product lines.
A company's product mix has a certain width, length, depth and consistency.
The width of a product mix refers to how many different product lines the
company carries.
The length of product mix refers to the total number of items in the mix.
The depth of a product mix points out the number of variants that are
offered of each product in the line.
The consistency of the product lines are in end use, production
requirements, distribution channels or some other way.
A product item is a specific version of a product that has a separate
designation in the seller's list.
Product Life Cycle
A product passes through certain distinct stages during its life. The stages
include introduction, growth, maturity and decline. The time period
required for the product to move through all the stages is the product's life.
The product life cycle concept was popularised by Theodore Levitt in 1965.
Features of Product Lifecycle
1. Products have a limited life.
2 Products pass through introduction, growth, maturity and decline stages.
Each poses different challenges and opportunities to the marketer.
3. Profits rise and fall at different stages of the product life cycle.
4. Products require different strategies in each stage of their life cycle.
5. The product life cycle is normally presented as a sales curve spanning the
course from introduction to decline.

1. Introduction
The product life cycle of any product starts with the introductory stage. Al
this stage, there is no ready market for the product. Sales are low. Profits
are negative because of low sales and heavy distribution and promotion
expenses The management should carefully decide the pricing strategy to
be adopted. The pricing strategies may be (i) market skimming; and (ii)
market penetration.
(i) Skimming strategy: Skimming strategy means launching the product at a
high price and with a high promotional level. The firm charges a high price
in order to recover the costs early. This strategy is possible when the
customers are unaware of the product and can pay the asking price.
(ii) Penetration strategy: Penetration strategy means launching the product
with low prices. The firm charges a low price because customers are price
sensitive. Penetration pricing strategy enables a mass market for the
product. It also eliminates competition.
2. Growth
If the product survives the introduction stage, then it passes on to the
growth stage. Demand for the product increases and the size of the market
grows. Philip Kotler suggests the following strategies to be adopted by the
marketer during the growth stage:
1. Improving the product quality and adding new product features.
2. Adding new models
3. Entering new market segments
4. Increasing distribution coverage
5. Shifting from product awareness promotion to product conviction
promotion.
6. Lowering the prices to the new layer of price sensitive buyers.
3. Maturity
During maturity stage, sales continue to increase but at the decreasing rate.
Generally, maturity stage lasts for a long period. So, most products are
found in the maturity stage of the life cycle for a lengthy period. Dealers
dictate terms to the various competing firms.
The marketer of the mature product may follow the strategies as suggested
by Philip Kotler. These strategies are discussed under three headings: (i)
market modification (ii) product modification and (iii) marketing mix
modification.
(1) Market modification:
The sales volume for the mature brand may be increased by increasing the
number of users and usage rate per user (volume = number of brand users
x usage rate per user). Number of brand users may be increased by
(a) converting non-users into users (airlines offer concessional fare to attract
people from surface transportation)
(b) entering new market segments (targeting at middle income group for
cars) and
(c) winning competitors customers (Pepsi-Cola is constantly wooing Coca
Cola users to switch).
Usage rate per user may increase (Pepsodent advertisement emphasises
brushing the teeth before going to bed).
(2) Product modification:
Product modification strategy may be adopted in the following ways:
(a) Quality improvement aims at increasing the functional performance of
the product (durability, reliability, speed, taste, etc.)
(b) Improvement of features aims at adding new features - size, colour,
weight, material, accessories.
(c) Improvement in style aims at increasing the aesthetic appeal of the
product.
(3) Marketing mix modification:
Sales may be stimulated by suitably modifying the marketing mix elements.
(a) The price may be lowered to attract price sensitive customers, where the
price is indicative of quality, price may be increased to signify higher quality
(b) The company may introduce the product into new distribution channels.
(c) Advertising expenditure may be increased; media copy may be changed;
timing and frequency of advertising may be changed.
(d) The company may step up sales promotion measures
 (e) Quality and size of the sales force may be increased. Qualified and
competent sales persons may be recruited.
(f) Credit may be extended to customers; customers may be offered
technical assistance.
4. Decline:
At the declining stage, sales begin to fall. Entry of functionally advanced
goods into the market causes decline in the sales of the product. Profit
diminishes. Harrigan has identified five strategies to combat this stage.
i. Increasing the firm's investment to strengthen its competitive position.
ii. Maintaining firm's investment level until uncertainties are resolved.
iii. Decreasing the firms' investment level selectively by dropping
unprofitable customer groups.
iv. Harvesting the firm's investment to recover cash quickly.
v. Divesting the business quickly by disposing of its assets as advantageously
as possible.

Stages in New Product Development

1. Idea Generation
Management must always be on the search for new product ideas, which
can be developed into a product later. New product ideas come from
customers, dealers, employees, competitors and top management. A
number of techniques may be employed to generate new ideas. User-
stimulus strategy, market research brain storming etc., are some important
techniques for idea generation.
Companies following user-stimulus strategies, announce attractive rewards
for good new product ideas. Market research groups conduct frequent
studies on consumers, products, competition, etc. Such studies reveal
product gaps. These product gaps represent the difference between the
existing supply of products and ideal products concept. Firms can
successfully identify the gaps for developing new products. In brainstorming
sessions, a small group of people is entrusted with a problem. At the end, it
is encouraged to come up with a solution.

2.Idea Screening
The objective of screening is to separate good ideas for new products.
Screening eliminates a number of ideas obtained from the idea generation
stage. Successful screening reduces the cost of product development.
Screening is systematised. The individuals present ideas in a standard
format. The format should be simple so that it encourages people to write
up ideas on the format
An idea committee is formed with members drawn from different functional
areas. The committee reviews the ideas. It evaluates each idea against a
check list, the more attractive ideas are passed on to the concept testing
stage.
3. Concept testing
Attractive ideas should be refined into product concept. A product concept
is an elaborate version of a product idea. The product concept is expressed
in practical and meaningful consumer terms. Then the product concept
passes on to concept testing. Concept testing determines customer
attitudes before product development.
4. Business analysis
Business analysis is of utmost importance in any product development. It
involves a detailed review of market factors, revenue, costs and trend for a
proposed new product. This stage will help in finalising whether a project is
viable from the marketing point of view. Through business analysis,
management can prepare cost, sales and profit projections. Total sales are
estimated on the basis of
(i) first time sales, (ii) replacement sales; and (iii) repeat sales. After
preparing the sales forecast, the marketer should estimate expected costs
and profits. Costs are estimated by the R & D, manufacturing, marketing and
finance departments. Management estimates the number of units of the
proposed new product the company should sell to break-even with the
given cost structure.
5. Product development
Having passed the business analysis test, the product concept needs to be
developed into a physical product. Till then, it has existed only as a
prototype. At this stage, the product concept is transformed into a
commercially feasible product. Product development involves the use of
quality function deployment (QFD). Customer attributes generated through
market research are transformed into engineering attributes. Prototypes
are then produced. They must be put through rigorous functional test.
Consumers are given samples to use in their homes. Focus groups, target
market surveys and other market research techniques render marketer
additional information to the marketer.
6. Market test
In the words of Kotler, test marketing is the stage at which the product and
marketing programme are introduced into more realistic market setting. In
testing consumer products, sales-wave research, simulated test marketing,
controlled test marketing and test markets are used.
(a) Sales wave research: Under sales wave research, consumers try the
product but at no cost. The same consumers are reoffered company's
product at reduced prices. The company studies how many customers
repurchase the product and their reported level of satisfaction. Sales wave
research may also be employed to study the impact of advertising on
repurchase.
(b) Simulated test marketing: In simulated test marketing. 30 to 40 qualified
shoppers are chosen. The marketer questions them about brand familiarity
and preferences in a specific product category. Then these shoppers are
exposed to some advertisements. One of such advertisements will be about
a new product. Consumers are given money to buy the brand they like. The
company notes down how many consumers buy the new brand and
competing brands respectively.
(c) Controlled test marketing: A research firm manages a panel of stores that
will carry new products for a fee. The research firm delivers the products to
the participating stores. Then sales results are measured. Controlled test
marketing helps the firm to test the impact of in-store factors and limited
advertising on buying behaviour. A sample of consumers can be interviewed
later to give their impressions about the product.
(d) Test markets: The last step to test a new consumer product is to put it
into a full pledged test market. The company selects a few cities and plan a
fall advertising and promotion campaign. The market tests may last
anywhere from a few months to a year.
7.Commercialisation
After successful completion of test marketing, the company introduces its
product in its target markets. It is known as commercialisation. With
commercialisation, the new product starts its introductory stage of product
life cycle.
 Module IV: Branding

Brand – meaning and definition

“A brand is a name, term, design, symbol, or any other feature that identifies
one seller’s good or service as distinct from those of other sellers” -
American Marketing Association
You can consider a brand as the idea or image people have in mind when
thinking about specific products, services, and activities of a company, both
in a practical (e.g. “the shoe is light-weight”) and emotional way (e.g. “the
shoe makes me feel powerful”). It is therefore not just the physical features
that create a brand but also the feelings that consumers develop towards
the company or its product. This combination of physical and emotional
cues is triggered when exposed to the name, the logo, the visual identity, or
even the message communicated.
A product can be easily copied by other players in a market, but a brand will
always be unique. For example, Pepsi and Coca-Cola taste very similar,
however for some reason, some people feel more connected to Coca-Cola,
others to Pepsi. In the end, a brand is a person’s gut feeling about a specific
product or company. Each person creates his or her own version of it, and
some brands increase or decrease in popularity because of how consumers
feel about them.

Branding – meaning and definition

“Branding is endowing products and services with the power of a brand” -
Kotler & Keller
Branding is the process of giving a meaning to specific organization,
company, products or services by creating and shaping a brand in
consumers’ minds. It is a strategy designed by organizations to help people
to quickly identify and experience their brand, and give them a reason to
choose their products over the competition’s, by clarifying what this
particular brand is and is not.
The objective is to attract and retain loyal customers and other stakeholders
by delivering a product that is always aligned with what the brand promises.

Brand Name – meaning and importance

A brand is a name, term, design, symbol or any other feature that identifies
one seller’s goods or service as distinct from those of other sellers. Brand
name is the ambassador of your business. A brand represents your product,
service and values of your business. A brand helps your target customers to
distinguish your product or service from your competitors. So, brand name
is more than a name. We’ll look at some of the importance of brand name.
1. PHONETIC SYMBOLISM
When Start-ups are challenged with the task of constructing brand names
for new products, they undoubtedly face a complex and difficult situation.
Most of the time people disagree with the fact that the brand’s name could
make a huge impact on the success of a brand. In fact, one notable example
is the Ford Edsel Failure. Edsel is an automobile marque that was released
for the model year 1958 to 1960 by Ford Motor Company. Company spent
$250 million on the Edsel project for its development, manufacturing and
marketing. But in the end of the project, it never gained popularity among
contemporary American car buyers. Public considered the model to be
unattractive, overpriced and overhyped. Public view of the model made a
huge impact on selling and the company lost most of the money invested on
the project Edsel. The name of the car ‘Edsel’ is cited as a major reason for
product failure because of the name Edsel made a negative impression on
the car. This example shows how a name could impact on the success of a
brand. Human mind and the sound of the brand name have a direct
association. It was scientifically described as Sound Symbolism.
2. RECOGNITION
People tend to recognize others by their name likewise Brand names are
also important to make a company disguising from each other. Recognition
comes from the fact that how strong the brand name is promoted in the
market. Recognition makes new customers easily. Brand recognition is
mostly influential in emerging markets.
3. BRANDING
Branding is a marketing practice in which a company creates a name, logo
and selecting theme colours to identify a company and disguises from each
other. Marketing is all about engaging with the customers. Marketing
expertise uses different strategies to market a brand. Good Product or
service is the key, but that alone can’t help getting in the real business,
marketing it. When it comes to marketing, brand name plays a major role.
People remember the name, not the product or the service itself. They
identify the brand by its name. Thus, finding the best brand name for the
company is a crucial decision to be made.
4. REPUTATION
Reputation is created with the fact that how strongly a product or service is
branded. Brand is what people say about a company and the perception that
customers have of the business. Reputation leads to more advantages other
than recognition.
When an employee works for a well branded company, they would be more
satisfied with their job and have a higher degree of pride in the work they
are doing in the company. This will create a more positive advantage on the
company. Working in a reputable company makes workers more satisfied
with their work and it makes them work enjoyable and fulfilling.
5. COMMUNICATION
Communication with the outside attracts new potential customers to the
business. This communication starts with the name of the company. People
tend to talk about the company by using its name. The company vision can
also be communicated through the Brand name. Businesses may need a
website, since the world has been accustomed to do business through the
internet. For that it will require a domain name which is essentially the
company’s web address on the internet. It must be similar to the company’s
brand name.
Brand Mark – meaning and importance
A brand mark is a symbol, element, art design, or visual image that helps
immediately recognize a certain company. It is essential for developing and
maintaining a brand's image.
IMPORTANCE
Brand identity isn't just about some visual assets. It's about conveying your
company's idea, the thing your brand stands for. Brand colours, fonts, and
even logos are just tools that help you communicate your message and
reach out to your target audience.
We live in a world where visual content plays a significant role in our
everyday life. According to Poll Everywhere, 65% of people are visual
learners. Thus, it's hard to ignore the fact that we absorb the information
we see better.
Many factors influence the success of a specific brand, one of which is
imagery. It's worth noting that using images can help you convey your
message and emotions quickly. Keeping this fact in mind, companies
worldwide use brand marks to identify their brands visually.

Types of Brands
1. PERSONAL BRANDING
Personal branding refers to creating a public persona that represents an
individual and their work. Celebrities often use this kind of branding because
their name, image and talents are all part of the work that they do. Other
professionals who use personal branding may include freelancers who
maintain a portfolio or professional website that shows their work and
expresses details about the products or services they provide.
2. PRODUCT BRANDING
A product brand focuses on distinguishing what makes your items different
from others. For example, if your company specializes in manufacturing
gourmet pet food, you may communicate how your pet food differs from
other types through how you design your packaging and logo. Businesses
may also use this kind of branding to differentiate between their own
products.
3. SERVICE BRANDING
Similar to product branding, service branding identifies what makes one
company's services different from another business's. Service branding can
also identify different services offered by the same business. For example, a
car wash business may offer three different packages to their customers.
They may brand each service option by describing what extra benefits each
level of car care service provides.
4. RETAIL BRANDING
Retail stores create their brand through the physical design of their store.
Features like the store's layout, lighting, music and flooring contribute to the
experience a customer has when they visit the establishment. Retailers that
offer similar products or services can distinguish themselves from each
other by creating a unique shopping experience for their customers. An
example of retail branding may be two clothing stores that offer similar
products but differ through the music they play, the displays they use and
the clothing models they feature.
5. CULTURAL OR GEOGRAPHIC BRANDING
In the tourism and travel industries, geographic and cultural branding is
common. This kind of branding uses recognizable cultural or regional
symbols to promote a product or service. For example, a bakery that
specializes in French pastries may use the symbol of the Eiffel Tower or the
colours of the French flag in their logo to communicate their affiliation to
their customers.
6. CORPORATE BRANDING
A corporate brand is how a corporation expresses its values, mission and
exclusivity to customers and clients. Corporate branding includes design
choices such as the organization's logo and name, but it also includes how a
corporation conducts its business. Everything from the way a company
designs its marketing campaigns to how it recruits its associates can affect
how the public perceives its brand.
7. ONLINE BRANDING
Online branding refers to the aspects of a business's identity that they
manage on the internet or through apps. This could include social media
accounts, online stores or other services offered digitally. Some businesses
may only have an online identity, while others may use online branding as
an extension of their physical branding.
8. OFFLINE BRANDING
Offline branding encompasses every type of branding that happens in the
real, physical world. It can include print media, the design of a retail
establishment or any physical materials you bring with you to a client
meeting. This kind of branding might also include a company uniform that
all associates wear to work or physical advertisements like those printed on
billboards or distributed through fliers.
9. DISRUPTIVE BRANDING
This kind of branding strategy challenges existing methods and introduces
different ways of establishing a brand or marketing a product. Businesses
may use this strategy to change the way the public perceives their brand, or
they may use it as part of their marketing strategy to advertise a new service
or product. Disruptive branding works by challenging accepted conventions
and introducing new concepts.
10. CONSCIOUS BRANDING
Conscious branding considers current social issues as part of its branding
approach. It engages with social or environmental concerns and promotes a
mission to make a positive social impact. An example of conscious branding
may be a fashion design company that only uses sustainable methods to
produce its clothing.
11. INNOVATIVE BRANDING
Innovative branding focuses on introducing unconventional products or
services. This kind of branding promotes products and services that are new
in the marketplace or have not been publicly available before. Technology
companies often use this kind of branding to promote new software or other
hardware products.
12. VALUE BRANDING
The value branding strategy promotes the cost-effectiveness of a product or
service. For example, a grocery store may promote its brand by advertising
the cost of its products compared to the same product at a competitor's
store. It focuses on developing a brand that attracts financially conscious
customers.
13. PERFORMANCE BRANDING
This style of branding offers products that deliver a high-quality experience.
Some product or service performance characteristics marketers may use in
this type of branding include dependability, efficiency and consistency. An
example of this kind of branding could be a car manufacturer that
emphasizes the reliability of the vehicles it produces.
14. LUXURY BRANDING
Luxury branding may focus on the high quality and exclusivity of a company's
products or services. This kind of branding expresses that there's a rarity,
extraordinariness or expense to the product or service in question.
Businesses that use luxury branding may include high fashion labels, luxury
car dealers and jewellers.
15. STYLE BRANDING
A style brand focuses on how products look and feel when compared to
similar items. Sometimes this strategy may elevate the looks of a product
over its performance. This style of branding often embraces a tone that
endorses a creative and contemporary perspective.
16. EXPERIENCE BRANDING
Experience branding relies on promoting the interactions or feelings the
customer has when using their product or service. This kind of branding is
common in industries that promote specific events or opportunities. For
example, an arena advertising for an upcoming concert at their venue may
use experience branding to communicate the necessity of attending an
event to potential customers.
17. INDIVIDUAL BRANDING
Individual branding generally refers to any tangible, individual product. A
specific toothpaste or soap can be an example of an individual brand. This
kind of branding may extend a product brand, service brand or personal
brand.
18. GROUP BRANDING
A group brand is a situation where several brand identities overlap under a
single entity. An example of group branding may be a company that owns
an animation studio and a live-action film studio but also manufactures
merchandise based on the entertainment media it produces. Though its
merchandise brand, animation brand and live film brand may each have an
independent brand identity, they are all united under the overreaching
identity of the company that produces them.
19. EVENT BRANDING
Event branding works similarly to experience branding. It promotes an event
or opportunity for potential customers to attend. When used effectively, It
entices participants to take part in a planned occasion. Examples of events
could be a show, sporting game or contest.
20. PRIVATE-LABEL BRANDING
Companies that use private-label branding manufacture products that are
sold by a different retailer. Private-label brands often include generic store
brands or own brands, and some common private-label products may be
cosmetics, clothing or cleaning products. The private-label branding strategy
often promotes products as a more cost-effective alternative to brand-name
products.
21. MEDIA BRANDING
Media branding specifically refers to how media outlets construct their
company images. News outlets, magazines and television broadcast
networks develop brands that communicate their content to a target
audience. For example, the way a local news channel brands itself may differ
from how a national news channel brands itself to distinguish the type of
viewers they expect to watch and interact with their content.

Trade Mark
A trademark is a type of intellectual property consisting of a recognizable
sign, design, or expression that identifies products or services from a
particular source and distinguishes them from others. The trademark owner
can be an individual, business organization, or any legal entity. A trademark
may be located on a package, a label, a voucher, or on the product itself.
Trademarks used to identify services are sometimes called service marks.
A trademark identifies the brand owner of a particular product or service.
Trademarks can be used by others under licensing agreements. For example,
Bullyland obtained a license to produce Smurf figurines; the Lego Group
purchased a license from Lucasfilm to be allowed to launch Lego Star Wars;
TT Toys Toys is a manufacturer of licensed ride-on replica cars for
children.[6] The unauthorized usage of trademarks by producing and trading
counterfeit consumer goods is known as brand piracy.
The owner of a trademark may pursue legal action against trademark
infringement. Most countries require formal trademark registration as a
precondition for pursuing this type of action. The United States, Canada, and
other countries also recognize common law trademark rights, which means
action can be taken to protect any unregistered trademark if it is in use. Still,
common law trademarks offer to the holder, in general, less legal protection
than registered trademarks.
A trademark may be designated by the following symbols:
™ - The "trademark symbol", which is the letters "TM" in superscript is for
an unregistered trademark.
℠ - The “service mark symbol” which is the letters "SM" in superscript is for
an unregistered service mark.
® - The letter "R" surrounded by a circle is for a registered trademark.
The essential function of a trademark is to exclusively identify the source or
origin of products or services, so a trademark, properly called, indicates the
source or serves as a badge of origin. In other words, trademarks serve to
identify a particular entity as the source of goods or services. The use of a
trademark in this way is known as trademark use. Certain exclusive rights
attach to a registered mark.
Trademarks are used not only by businesses but also by non-commercial
organizations and religions to protect their identity and goodwill associated
with their name.

Trade Name
A trade name, trading name, or business name, is a pseudonym used by
companies that do not operate under their registered company name. The
term for this type of alternative name is a "fictitious" business name.
Registering the fictitious name with a relevant government body is often
required.
A company typically uses a trade name to conduct business using a simpler
name rather than using their formal and often lengthier name. Trade names
are also used when a preferred name cannot be registered, often because it
may already be registered or is too similar to a name that is already
registered.
Patents
A patent is a type of intellectual property that gives its owner the legal right
to exclude others from making, using, or selling an invention for a limited
period of time in exchange for publishing an enabling disclosure of the
invention. In most countries, patent rights fall under private law and the
patent holder must sue someone infringing the patent in order to enforce
their rights. In some industries patents are an essential form of competitive
advantage.
The procedure for granting patents, requirements placed on the patentee,
and the extent of the exclusive rights vary widely between countries
according to national laws and international agreements. Typically,
however, a patent application must include one or more claims that define
the scope of protection that is being sought. A patent may include many
claims, each of which defines a specific property right. These claims must
meet various patentability requirements.
Under the World Trade Organization's (WTO) TRIPS Agreement, patents
should be available in WTO member states for any invention, in all fields of
technology, provided they are new, involve an inventive step, and are
capable of industrial application. Nevertheless, there are variations on what
is patentable subject matter from country to country, also among WTO
member states. TRIPS also provides that the term of protection available
should be a minimum of twenty years.
In modern usage, the term patent usually refers to the right granted to
anyone who invents something new, useful and non-obvious. A patent is
often referred to as a form of intellectual property right, an expression
which is also used to refer to trademarks and copyrights.
Copyrights
A copyright is a type of intellectual property that gives its owner the
exclusive right to copy and distribute a creative work, usually for a limited
time. The creative work may be in a literary, artistic, educational, or musical
form. Copyright is intended to protect the original expression of an idea in
the form of a creative work, but not the idea itself.
Copyrights can be granted by public law and are in that case considered
"territorial rights". This means that copyrights granted by the law of a
certain state, do not extend beyond the territory of that specific jurisdiction.
Copyrights of this type vary by country; many countries, and sometimes a
large group of countries, have made agreements with other countries on
procedures applicable when works "cross" national borders or national
rights are inconsistent.
Typically, the public law duration of a copyright expires 50 to 100 years after
the creator dies, depending on the jurisdiction. Some countries require
certain copyright formalities to establishing copyright, others recognize
copyright in any completed work, without a formal registration. When the
copyright of a work expires, it enters the public domain.
Copyright may apply to a wide range of creative, intellectual, or artistic
forms, or "works". These can include poems, theses, fictional characters,
plays and other literary works, etc. Copyright does not cover ideas and
information themselves, only the form or manner in which they are
expressed.[37] For example, the copyright to a Mickey Mouse cartoon
restricts others from making copies of the cartoon or creating derivative
works based on Disney's particular anthropomorphic mouse, but does not
prohibit the creation of other works about anthropomorphic mice in
general, so long as they are different enough to not be judged copies of
Disney's. Mickey Mouse is not copyrighted because characters cannot be
copyrighted; rather, Steamboat Willie is copyrighted and Mickey Mouse, as
a character in that copyrighted work, is afforded protection.
Characteristics of a good brand name
1. SIMPLE AND EASY TO PRONOUNCE
Simplicity is the main feature of good brand name. Simple and easy brand
name should be selected for a product so that it can be understood and
pronounced by all customers. The brand name which can be pronounced
easily by educated, uneducated, old, young, children etc. becomes popular.
2. SHORT AND EASY TO REMEMBER
A good brand name should be short. Short name becomes easy to
pronounce and remember. Short brand name can be printed on little space
or set on products.
3. NEW AND ATTRACTIVE
New and attractive brand name should be selected for any product. As far
as possible, the brand name should be selected new and unique and has not
been used by any other companies. It should be attractive so that a large
number of customers are attracted. Such brand names should be also
memorable.
4. SHOULD REFLECT THE NATURE OF PRODUCT
A good brand name should be able to reflect the nature of product. Such
brand name can make the consumers remember the use of the
products."Quink", 'Nescafe', 'Angel Face' reflect 'writing ink'. 'drinking
coffee' and 'makeup material' respectively.
5. LEGALLY SAFE
It is another essential feature of good brand name. Brand name should be
legally safe. Before selecting and using any brand name, it should be
confirmed whether or not any other companies have already used the
selected brand name. It is important to register the company’s brand name
with the registrar of companies. If the selected brand name has been already
registered and is being used by any other firm or company, such brand name
cannot get registered with the company registrar.
6. SUGGESTIVE
Brand name should be suggestive. It should be such that when heard the
name of the product, the consumers can understand its utility.
7. SHOULD NOT BE OBSCENE
Obscene word, symbol or sign should not be used in brand name. If selected
such word, symbol or sign for brand name of any product, it spoils the image
and reputation of the firm.

Advantages of Branding
1. CREATES WIDE AWARENESS
Branding helps the business in creating wide awareness regarding its
products or services among the public. This process leads to the circulation
of the company’s promotional message in wider areas. Branding informs
customers about the quality and features of the company’s products and
differentiates it from other competitors.
2. ACQUIRES CUSTOMERS EASILY
Good brand of a company helps it in getting new customers. Companies
enjoying better images are easily able to acquire new customers. Customers
develop faith and confidence in good brands. They become loyal to them
and make repetitive purchases.
3. INCREASE PROFITABILITY OF BUSINESS
Branding helps businesses in generating large revenue. Through branding,
the business develops a good position in the market. They are easily able to
sell their products at a good margin. Customers are willing to pay high prices
for the goods of reputed brands. It is all because of the trust and faith they
have in these brands.
4. HELPS IN FACING COMPETITION
A good brand is an important factor for businesses facing tough
competition. Through branding, businesses create a distinguished identity
that helps them in developing loyal customers. These customers remain
stick to a particular brand over a long period. They prefer their brands over
all others in the market.
5. ENHANCE BUSINESS VALUE
Business value in the market is a must to attract funds from the market. A
reputed business has a good image in the market. Every investor wants to
invest in reputed companies. Branding by developing a good image helps
companies to easily attract funds from investors.
6. IMPROVES PRODUCTIVITY OF EMPLOYEES
Good brands are easily able to attract the most skilled and qualified
employees. Every person wants to work in top reputed companies. Your
good reputation will attract them to your business. This way companies get
talented and smart workforce for their different activities.
7. SUPPORTS BUSINESS DURING CRISES
Strong brands are able to survive during the time of crisis. In case of any
mishaps, they are able to handle it easily. Customers have strong confidence
and trust in these brands. This confidence and trust is developed by
delivering quality and superior products over the years. So if there is any
quality issue and fault with their products, customers support them in their
hard times.

Disadvantages of Branding
1. EXPENSIVE
The branding process involves huge development costs on the part of the
business. They need to incur huge costs on advertising and publicity
programs for maintaining their brand image. All this expenditure influences
the price of goods and services offered by the brand.
2. CREATES CONFUSION
It creates confusion in the minds of consumers while choosing products.
Every company through its publicity messages gives the same assurance
regarding its product quality and features. People are confused in deciding
which one to purchase and which one not.
3. IMPERSONAL
Businesses may lose personal touch with their customers as branding is an
impersonal activity. They are able to manage better relations with their
customers when they interact with them personally.
4. LEADS TO MONOPOLY
Branding leads to the creation of a brand monopoly in the market. This
process aims at creating a better image of products and its manufacturers
in the minds of customers. Small businesses that cannot afford branding
expenses suffer from monopolistic competition in the market.
5. TIMESCALE
Another important disadvantage of branding is that it is a time-consuming
process. It requires large efforts and time to design a branding message and
circulating it among the large public to establish a better public image.