Marketing Compedium PDF

Explaining 150+ Exclusive section fundamental for Digital concepts of marketing marketing concepts...

Explaining 150+ Exclusive section fundamental for Digital concepts of marketing marketing concepts 4P / STP Digital Marketing Updated with 50+ New Topics latest examples like Startups, Meme (No age-old Marketing, Moment clichés) marketing, etc. Examples of 2020 Gen-Z Marketing Marketing Weekly Publications 500+ Latest concept examples: 1 www.MarketingWeekly.in Index About Marketing Weekly At Marketing Weekly, we aspire to deliver unbiased analysis on the most recent and relevant topics in the realms of marketing and corporate strategy. With each post, we aim to provide a fresh perspective on business by linking concepts to corporate actions, thus hoping to inspire our readers to critically examine brands and initiatives that shape their lives and the world around them. We aim to grow the network of B-School students and aspirants that frequent the platform and provide them access to premium marketing content for preparatory and leisure reading. We have over 35+ dedicated contributors who are either currently in top B-schools or are alumni of top B- schools from across the country working in reputed organizations. To get all our future publications like Digital Marketing Compendium, Competition Playbook, etc. Subscribe to our newsletter Stay Connected with us on This compendium will serve as a comprehensive guide geared for summer/final placement activities. We have covered commonly assessed conceptual and case-based materials that companies rely on to better understand the breadth & depth of a candidate’s knowledge. Special credit to Freepik.com & Flaticon.com for wonderful images www.MarketingWeekly.in Index Tap Anywhere to check the version of your compendium w w w. MarketingWeekly.in Index  Fundamental of Marketing: Introduction to Introduction to Marketing Selling Marketing Vs. Selling Marketing Mix Segmentation , Targe t ing & P o s it io ns : STP STP Terminology Check-list P roduc t Mix: Explaining Xiaomi ITC Tata Motors Product Product Product Product Mix Mix Mix Mix Sales & Dis tribution: Type of A dvertis ing Basic FlowChart Terms of Of S&D S&D ATL/BTL/TTL 4 www.MarketingWeekly.in Index Framew orks : SWOT BCG Ansoff Analysis Matrix Matrix P ric ing Strategies : 9 Pricing Strategies B2 B Marketing & Sales Funnel: P roduct Life Cyc le: Introduction Examples of PLC Fundamentals of BRA ND: What is Brand Brand Brand Brand? Prism Rivalry Personality www.MarketingWeekly.in Index Some more Marketing: Rural Emotional Cause Marketing Marketing Marketing I nteres t C onc epts o f Marke t ing: Surrogate AIDA Co-branding Planogram Marketing Model Framing Brand Service Effect Cannibalization Marketing Digital Marketing: Startups : 7 Type of Principles Digital Of Marketing Digital Marketing Ec ommerc e: Further Readings : Best Our Top Articles Infographs w w w. MarketingWeekly.in Index w w w. MarketingWeekly.in Index MARKETING Marketing is meeting consumer demands profitably. It starts by identifying a gap in the Market - something for which there is an inert need/want that isn’t sufficiently met. Marketing works its way from here to building a product or a service that meets those needs and wants. Marketing covers broad areas ranging from finding the right Target Group (TG) to pricing and communication strategies. For now, Understand that a successful marketing execution brings prospects to you (its a Pull strategy). A great example of identifying gaps in the Market is Apple’s iTunes. iTunes changed the music industry by making it possible for customers to own thousands of songs on one listening device at a very reasonable price. Prior to this, owning Music was costly and piracy had encompassed the Music Industry. www.MarketingWeekly.in Index SELLING Selling is a process of convincing a prospect on buying your product or service (it's a push strategy). This could be done by the Salesperson at your door or your local shopkeeper or a luxury showroom salesperson or in the digital world, the ecommerce website nudging you to make a purchase. A well marketed product as against a poorly marketed product requires less effort in selling. For Instance, it is easier to sell an HDFC savings account than it is to sell an IndusInd bank account. You are more likely to receive a cold call from IndusInd explaining to you the benefits of opening an account with them. In certain Industries where product and/or service differentiation is difficult to achieve, revenues are driven primarily by pushing products to consumers. For Instance, In Telecom product differentiation between Airtel and Vodafone is minimal. These companies focus on selling and strengthening regions of operations. w w w. MarketingWeekly.in Index MARKETING VS SELLING Marketing Concept Selling Concept Manufacturer Manufacturer Demand Sales Incentives Marketing Activities Distributor Distributor Demand Sales Push Consumer Consumer www.MarketingWeekly.in Index  MARKETING VS SELLING: ONE VIEW Marketing Selling Pull Strategy Push Strategy Customer centric Product centric Revenue generated from providing right Revenue generated from reaching out to product to the right audience as many consumers as possible Focuses on increasing revenue by Focuses on increasing revenue by optimizing the processes increasing the volume of sales Long Term Planning Short Term Planning Interesting Read: The art of Direct Selling www.MarketingWeekly.in Index MARKETING MIX Do you know what makes a product/service successful in the market? The first step is to get the Market Mix right! The marketing mix is about putting the right product or a combination thereof in the right place, at the right time, and the right price. There are broadly 2 concepts in the marketing Mix: 4PS & 7PS 4Ps E. Jerome McCarthy created the Marketing 4Ps in the 1960s. It stands relevant even today and is used by various companies for their GTM strategy. PRODUCT PRICE TARGET MARKET PLACE PROMOTION www.MarketingWeekly.in Index Product: A product is anything tangible and intangible which fulfill our customers’ needs or wants. A product must be relevant & adaptable to the changing needs of the user. Three levels of a product Model : AUGMENTED PRODUCT ACTUAL PRODUCT Consumer Customer Care Features brand Styling perception Product Purpose 20% Impact 80% Cost Cc CORE PRODUCT Credit Colour Packaging After sales Service Intended benefit Branding Quality Warranty Installation Delivery www.MarketingWeekly.in Index www.MarketingWeekly.in Index Price: To Buy or Not to Buy? Probably the main question that comes to our mind after seeing the Price tag. A great product at the wrong price can fail terribly. E.g. Nissan Murano Cross Cabriolet The Primary determinants of Pricing of a product are the perceived value, the utility of the product and the price the target segment is willing to pay. Dynamic Pricing Promotional Pricing Penetration Pricing Price keeps on changing as Here discount is offered on certain per time & demand. Low price to attract the buyers. products. E.g. EORS E.g.: Airline Ticket Pricing E.g.-Jio Infocomm. Psychological Pricing Economy Pricing Here the emotions of customers are targeted rather than the PRICING Here the production cost is minimized. E.g.-Walmart logic. E.g.- 499 instead of 500 TECHNIQUES Premium Pricing Freemium Pricing Product is priced high to create a Bundle Pricing Here basic service is offered for perception of premium-ness free but advance options are Bundle of products or services chargeable. E.g. Canvas, Grammarly E.g.-Rolex is offered at lesser price then if you buy each product separately. E.g McDonalds Meal w w w. MarketingWeekly.in Index Place: So how does a product move from production to consumption? Place is basically the channels of distribution a company chooses to increase the reach of its products. Various distribution channels that can used: Direct Sales: Door to door, Selling at Manufacturer’s Plant Indirect Marketing Channel: One-Level Channel , Hybrid Distribution Channel or Multi- Channel Distribution System. Ecommerce Promotions : How does a new product reach people? It begins with inception of the new product idea, price is fixed and then the product is distributed…..but how will people know about it? Promotions play a major role in increasing the awareness of the product. Promotion helps in increasing brand/product awareness and in lead generations. Marketing campaigns include promotional activities to engage and attract consumers. There are two types of Promotions: Sales Promotion: Bundle offers, Discounts, BTL activities etc. Marketing Promotions: Digital Campaigns, Sponsorships, etc. www.MarketingWeekly.in Index Marketing Mix (4P) for iPhone 11 Pro Max: PRODUCT PRICE Smart Phone Built Features: Triple camera, Rs 117000-132000, A13 bionic chip,6.1 inches depending on the display, Longest battery configuration life, Water resistant, XDR display PLACE PROMOTION Sales Promotion: Free Apple has partnered with access to Apple Tv to Ingram Micro & Redington new customers India Limited to distribute Marketing Promotion: Apple Products nationwide Campaign-Its tough out E-commerce websites there www.MarketingWeekly.in Index 7PS The 7Ps is generally used in the service industries PRODUCT PRICE PLACE PROMOTION PHYSICAL PEOPLE PROCESS EVIDENCE Extending the marketing mix by adding Physical Evidence, Process and People to 4P, bring marketing function closer to human resource management and operations. www.MarketingWeekly.in Index The Remaining 3 Ps of the 7Ps People: The people in the framework represent the employees, consultants, and freelancers who deliver the service to customers. People are the most critical factor in providing knowledge-based services as they add value to the experience of the consumer. Hence, training, personal selling, and customer service are key ways to ensure good service from the employees facing consumers. E.g. Waiters of a restaurant, Hairstylists in a Salon, business analyst in IT companies, etc. Process: The processes are the steps that are required to deliver the service to a customer. Aim of all service companies is to have a seamless process flow, making it easier for the consumer. These companies share process maps for employees to make sure that work is repeatable and successful. www.MarketingWeekly.in Index Physical Evidence: The physical evidence is a combination of the environment and branding where the service is provided to a customer. The physical evidence capital would be: A service brochure Franchise Layouts Uniform & Mascots of brand Social media accounts A corporate website Company Service center/Point of Sales w w w. MarketingWeekly.in Index Example of 7Ps: PRODUCT: PRICE: Very affordable-Starts @Rs 29 Veg & Non-Veg menu Range: Rs 29-Rs Beverages Psychological pricing Frozen desserts Cost leader PROMOTION: Happy Meals with free toys PLACE: Popular locations. Billboard ads Across most cities like malls Social media Drive -In & drive through options PHYSICAL EVIDENCE: McDonalds-Mascot PEOPLE: Social media accounts Fast & Friendly Service Franchise buildings Employee uniform PROCESS: Transparent to consumers Uniform process worldwide Interesting Read: Dynamic Pricing: The art of the deal www.MarketingWeekly.in Index SEGMENTATION, TARGETING AND POSITIONING (STP) Segmentation Identifying and profiling distinct groups of buyers who differ in their needs and wants. The marketer’s task is to identify the appropriate number and nature of market segments and decide which ones to target. Market segments must rate favorably on five key criteria (MSADA) for them to be useful: Measurable: The size, characteristics & purchasing power of the segments can be measured. Substantial: The segments are large and profitable enough to serve. A segment should be the largest possible homogeneous group worth going after with a tailored marketing program. Accessible: The segments can be effectively reached and served. Differentiable: The segments are conceptually distinguishable and respond differently to different marketing-mix elements and program. Actionable: Effective programs can be formulated to attract and serve segments. www.MarketingWeekly.in Index Segmentation Sr. Basis of Segmentation Example variable no 1 Geographic segmentation Regions - North, South, East, West 2 City or metro size Urban, Suburban, Rural Geographic 3 Density Urban, Suburban, Rural 4 Climate Hot, Cold, Tropical 5 Age Under 5, 5-11,12-17,18-34,35-49,50-64,64+ 6 Family size 1-2,3-4,5+ Young, Single, Young married, No children married, 7 Family life cycle youngest child below 6 8 Gender Female, Male, Transgender 9 Income Under $10,000, $10,000-15,000 and so on Demographic 10 Occupation Profession, technical, Managers etc. 11 Education Grade school or less, graduate, post graduate 12 Religion Hindu, Muslim, Christian, Sikh, Jain, Atheist. 13 Race White, Brown, Tribals 14 Generation Gen X, Millennials (Gen Y) 15 Nationality Indian, South African, American 16 Social class Lower, Middle, Upper 17 Psychographic lifestyle Culture-oriented, sports-oriented, outdoor-oriented Psychographic 18 Personality Compulsive, gregarious, authoritarian, ambitious 19 Behavioural occasions Regular occasion, Special occasion 20 Benefits Quality, service, economy, speed 21 User status Nonuser, ex-user, potential user, first time user 22 Usage rate Light user, medium user, heavy user Behavioural 23 Loyalty status None, medium, strong, absolute Unaware, informed, interested, desirous, intended to 24 Readiness stage buy 25 Attitude toward product Enthusiastic, positive, indifferent, negative, hostile www.MarketingWeekly.in Index Possible Levels of Segmentation Example Marriott International® owns a number of different hotel chains that target specific consumer groups. www.MarketingWeekly.in Index For example, Courtyard by Marriott® hotels focus on travellers on the road, who want a nice, clean place to stay during their trip; Ritz-Carlton® hotels target those who don't mind paying a premium for luxury; and Marriott ExecuStay® hotels are aimed at professionals who need a long-term & comfortable place to stay. Marriott International doesn't communicate the same marketing message to all its customers. Each hotel is designed and positioned to appeal to the unique wants and needs of a specific group. Targeting The segments that fit into the company objective that can be serviced are identified & targeted. Firm can sell one product to several segments with product specialization. Firm focus on serving many needs of a specific customer segment with market specialization. www.MarketingWeekly.in Index Example: Positioning map of cars Positioning Creating a favorable & distinctive image (or position) for the product in the mind of the consumer. To Develop a conducive position, brand requires optimal Points-of-parity (POPs) and Points-of-difference (PODs) (Read more about it on next page) www.MarketingWeekly.in Index  Points-of-difference are attributes unique to the brand that are strongly held & favorably evaluated by consumers. Three criteria determine whether a brand association can truly be a POD: desirability, deliverability, differentiability Points-of-parity are those attributes which are not unique to the brand but shared with other brands. POPs are in three basic forms: Category: Attributes or benefits that consumers view as essential to a credible offering within a product/service category. (Necessary but not sufficient conditions for brand choice) Correlational: Potentially negative Attributes that arise from the existence of positive associations for the brand. Ex: If it's inexpensive, it may not be of good quality. Competitive: Attributes designed to overcome the weakness of the brand in the light of competitors (Competitors PODs suggest the brand’s POPs) Interesting Read: How did ITC Classmate achieve 25% Market Share www.MarketingWeekly.in Index  Source: Pinterest www.MarketingWeekly.in Index  PRODUCT MIX Product Product Product Product Line Line Line Line Product Product Product Product Product Type Type Type Type Type Product A Product C Product G Product K Product O Product B Product D Product H Product L Product P Product C Product E Product I Product M Product Q Product D Product F Product J Product N Product R Product Line Length Product Line Width Product Mix Width SKU: Stock keeping unit, means volume or Product A SKU 1 SKU 2 SKU 3 weight of a product. E.g. Maggie’s 70 gm SKU 1, 280 gm SKU 2, 420 gm SKU 3, etc. www.MarketingWeekly.in Index Few Definitions Product Line: Similar kind of products having different color, size, taste, etc. sold under one brand name. E.g. Oreo’s Chocolate, Normal, Orange, etc. flavors & its different weights. Product Line Length: It is defined as the number of products in a single product line. If we see previous example, Oreo has product line length of 3 Product Line Width: It is defined as the number of similar product lines parallel to each other. You may have two or more brands under biscuits or beverage category. E.g. Coca-Cola has Minute maid line, Coke line, Sprite, Powerade. Each of this line has different variants & SKUs which makes product length. Product Mix Width: It is a sum total of all different kind of product lines under all the categories. If we see Unilever’s product mix, we will find various categories such as skin soap, detergent, deodorant, ice-cream, shampoo, etc. Sum total of entire range makes the Width Interesting Read: How Brands choose their product mix name? www.MarketingWeekly.in Index  Xiaomi Product Mix Smartphone TV Laptops Audio Power banks Smart Devices Miscellaneous Redmi K20 Compact MI Notebook Bluetooth 10000 mAh Electric Smart Bands Pro Projector 14 Speaker Bank Scooter MI Notebook Wireless Rumba room MI 10 MI Smart TV BT Headset Shoes 14 Horizon Charge Pad cleaner MI MIX MI Robot MI Box 4K Earphones Drones Alpha Builder Action Redmi Note8 Headphones Smart Plug Camera Wireless Desk/Bed Sphere Redmi Note 7 Earphones 2 Lamp Camera Electric Air Security Cam compressor Air Purifier WiFi Router www.MarketingWeekly.in Index  ITC Branded Personal Care Education and Incense Sticks and Lifestyle Apparel Packaged Food Products Stationary Safety Matches Aashirwaad Fiama Di’Wills Wills Lifestyle Classmate Mangaldeep Sunfeast Vivel John Players Paperkraft AIM Yippeee Engage Kitchens of India Bingo Mint-O Candyman w w w. MarketingWeekly.in Index www.MarketingWeekly.in Index  Type of Advertising: ATL BTL & TTL ✓ ✓ ✓ Interesting Read: Digital Out of Home Advertising www.MarketingWeekly.in Index Companies can choose to conduct promotional activities in three ways Above The Line Reach entire market as a whole to build brand awareness and inform masses about (ATL) product Promotional activities Below The Line Focused communication for specific target (BTL) group through individual level interaction Combination of ATL and BTL, using mass Through The Line advertising forming a customer database to (TTL) focus on conversion. Category Above The Line Below The Line Through The Line Mass market with focused Target Undifferentiated Segment Specific target segment conversion Known as Mass marketing One to One marketing Combination of ATL & BTL Digital marketing, 360 TV, Radio, Print, Billboards, Flyers, Door to Door, PR events, SMS, Media used degree marketing with both Cinema Adverts Emails, College/institute events ATL & BTL May or may not drive Customer response can be Response One to One response customer response gauged indirectly ROI Difficult to measure Easier to measure due to direct response Easier to measure than ATL www.MarketingWeekly.in Index FMCG and personal care brands use ATL marketing techniques to increase brand recall and subconsciously influence the purchase. How do we measure an ATL campaign? The reach of members watching the ad The frequency of views The number of impressions across various platforms Companies use BTL activities in places such a College, university, societies. high foot-fall areas to target its prospects. How do we measure a BTL campaign? Sales achieved at place of activity. New customer acquired at the site. Conversion rates on site (at place of activity). Impression estimates via foot-falls. Open rate of email campaigns. TTL can hel p brands use an integrated approach to advertise products to both mass & focused markets together. www.MarketingWeekly.in Index  Example of Vodafone As part of ATL advertising, Vodafone books key places for hoardings of its upcoming initiatives. For example: hoardings at airports, High streets, City Road, etc. For BTL advertising, you will often see a booth of Vodafone inside the malls. Interesting Read: Concept of Future DOOH! w w w. MarketingWeekly.in Index Sales & Distribution Management Sales & Distribution (S&D) is simply a process involving all the things from taking a finished good from a factory to the customer. Sales & Distribution (S&D) involves various departments such as Warehouse, Logistics, CRM, Sales force, Business development team, Product training team, Trade marketing team, Etc. Let us understand S&D with this simple flow-chart. More about it on next Page. Finished Sales & Goods Distribution Customer www.MarketingWeekly.in Index  Explained Transportation of Finished Goods using Exports happen via Carry & Forwarding (C&F) Agents port (or Dry port) after regulatory clearance Exports Factory Warehouse/ Depot Carrying & Forwarding (C&F) agents provide transportations General Trade (For mass distribution) Modern Trade B2B & Direct (E.g. BigBazaar/Dmart) Ecommerce Distribution Wholesaler Stockist (Urban) Super-Stockist (Rural) Rural Distributor Wholesaler Consumer It is called Primary Sales. It is between company & Distributor/Stockist/Channel partners Margin: Each Channel involved gets the margin. Margin It is called Secondary Sales. It is between Distributor/Stockist & Retailer/Dealer varies across industry & company. It is called Tertiary Sales. It is between Retailer/Dealer & Consumer Download HD PDF of the infograph here: w w w. MarketingWeekly.in Index Terminology Of Sales & Distribution Warehouse/Depot: It is a place where company stores their finished goods. Goods are then dispatched from such depots to various places. Ideally a company should keep multiple warehouses to improve wait-time for order delivery. Carrying & Party that provides logistics solution to companies in dispatching forwarding agents: their goods to various locations are C&F agents. They charge on basis of distance as well as delivery speed. Also charge may increase if your product needs specific temperature condition. Modern Trade: Organized trade stores such as Bigbazaar, Dmart, More, etc. are called modern trade. Companies directly provide them goods, thereby eliminating distribution margin charges This allows them to pass on distributor margin to customers by means of discounts & schemes. Disadvantage of MT is that it lacks the convenience of neighborhood stores. Stockist: Stockist or Distributor operates in Urban geographies. They provide goods received from company warehouse to various retailers. They also sell bulk quantity to wholesaler to increase its distribution reach & save logistics cost for serving low value outlets. www.MarketingWeekly.in Index  Super Stockist: Usually such distribution works in rural geographies where 1 big super-stockist provide bulk quantities to various rural distributors/Wholesalers. Super stockist helps company reach deep rural areas. Various incentives such as freight charges are paid extra for extended geographies. Wholesaler: They usually operate with multiple brands & hence they can afford to provide service to smaller outlets & remote markets. Companies discourage wholesaler concept as it reduces Market Operating Price (MOP). MOP is what retailer pays to distributor. Concept of Margin: Every channel involved retains a specific margin so each stakeholder earns a profit out of it. E.g. Fevikwik costs 5 Rs. at a retail store. C&F agent gets 1% margin of 5 Rs. = 0.05 Rs. Distributors/Stockist get 2% margin of 5 Rs. = 0.10 Rs. Retailers get 5% margin of 5Rs. = 0.25 Rs. (Sometimes in form of an extra unit). So total money earned by them = 0.05 + 0.10 + 0.25 = 0.40 Rs. earned by all collectively Interesting Read: Why Colgate is a Market Leader in Oral Care? www.MarketingWeekly.in Index SWOT ANALYSIS , helps you develop business strategy Where do What are What What do you need your obstacles you to growth do you do well? improve? prospects face? ? www.MarketingWeekly.in Index  Include things that Include things that your your company or company is not doing well project does extremely or needs improvements well. E.g. Shortage of skilled E.g. Brand attributes, people, financial people, strong limitations or lack of leadership etc. clearly defined USP. Include everything you Include things that could do to grow as a pose a risk to the company. All possibilities company. E.g. Tapping other E.g. Emerging markets to improve the competitors, financial sales, using advanced risks, changes in technology for better regulatory law etc. results. Interesting Read: : A different approach to SWOT 43 www.MarketingWeekly.in Index  STRENGTH WEAKNESSES Extensive distribution network Limited market share due to Innovative FMCG company presence of strong FMCG brands Brand visibility Faced controversies like skin Products with presence in over 20 lightening cream consumer categories Market Saturation OPPORTUNITIES THREATS Improve penetration in low Competition from local products like performing portfolio such as Oral Patanjali Care & Deodorants Increasing competition amongst M&A to strengthen the brand other FMCG companies Increasing purchasing power of Portfolio such as Oral care & people thereby increasing deodorant segment losing market demand share www.MarketingWeekly.in Index 45 www.MarketingWeekly.in Index BCG MATRIX What is the BCG matrix? Increasing Business Growth Rate BCG matrix is a product of the Boston Consulting Group Star Question Mark It is a 2*2 matrix which helps in Expand Improve or Divest the portfolio analysis of a business unit. It helps to determine in which products to invest, expand & Cash Cow Dog which to sell. Harvest Divest Increasing Relative Market Share Relative Market share: The portion of a market controlled by a particular company or product. Relative Growth Rate: An increase in the number of people who buy a particular product or service, or the number of products. www.MarketingWeekly.in Index 4 Categories of the BCG Matrix Stars: High Market share Question Marks: Low Market Share High Growth High Growth These are market leading products Potential of becoming stars if the. & generate huge income. market share can be increased. Requires huge investments to retain Careful analysis is needed to their top position. determine whether to invest or not. Cash Cows: High Market share Dogs: Low Market Share Low Growth Low Growth Require less investment to maintain Mostly won’t generate large profit existing market share. and may just break even. No further investment should be Mostly ought to divest, as they have undertaken. a negative effect on overall profitability of company. w w w. MarketingWeekly.in Index  BCG Matrix of Amul Amul has diversified their offerings, Increasing Business Growth Rate entering into different milk and milk product markets, let us understand Ghee and BCG Matrix of Amul. Lassi Ice cream Cash Cows : The 3 products mentioned in the figure (milk, butter, cheese) Milk, Butter and Cookies and generate steady, high revenue. Cheese Pizza They are the “flagship” products of the brand. Increasing Relative Market Share Stars: Question Marks: Dogs: Amul invests a lot of cash Amul Lassi falls under this Due to the heavy coming from cash cow into category. competition & limited star-product promotions. Considering the increasing innovation in these Amul Ice Creams have demand for healthy products, products, it’s difficult for targeted & appealing ads in this category shows a huge Amul to gain market share order to improve awareness potential to grow. & generate huge revenue. www.MarketingWeekly.in Index BCG Matrix of Amazon Increasing Business Growth Rate Kindle Fire TV Amazon Video Alexa Music Increasing Relative Market Share www.MarketingWeekly.in Index Interesting Read: BCG Matrix on the World of Ice Cream www.MarketingWeekly.in Index  ANSOFF MATRIX Ansoff Matrix is vital for strategic planning to find out opportunities that can help grow business by developing new products & services or tapping into new markets. Also known as Product-Market Matrix. It is a tool used by the brands to plan and analyse their growth by putting their product portfolio (existing or new) in different categories. The Entire product portfolio of a brand can be divided into one of the 4 categories mentioned below: Market Penetration: Increasing sales of existing products to an existing market. Market Development: Entering a new market using existing products. Product Development: Introducing new products to an existing market. Diversification: Entering a new market with the introduction of new products. 51 www.MarketingWeekly.in Index  ANSOFF matrix of XIAOMI EXISTING NEW Product EXISTING SMARTPHONES POWER EARPHONES SUPPLIER MI TV LAPTOP MARKET PENETRATION PRODUCT DEVELOPMENT Market DRONES ELECTRIC SCOOTER NEW SMART IP CAMERAS WATCH VR HEADSET MARKET DEVELOPMENT DIVERSIFICATION Interesting Read: Where will Apple’s next trillion come from? www.MarketingWeekly.in Index Pricing Strategies www.MarketingWeekly.in Index Pricing Strategies Premium Penetration Predatory Geographical Pricing Pricing Pricing Pricing Skimming Psychological Dynamic Bundle Pricing Pricing Pricing Pricing www.MarketingWeekly.in Index Premium Pricing Product/Service is unique Perceived Benefit of the product is high High competitive advantage must exist with the marketer E.g. Ferrari, iPhone, Gucci Penetration Pricing Setting the price low with the goal of attracting customers and gaining market share Price is raised once market share is gained Typical in Indian Aviation Industry w w w. MarketingWeekly.in Index Predatory Pricing Selling at extremely cheap rate to quickly increase the market share Works for service based industries like Telecom, Insurance, Banking, IT etc. Law may curtail & punish if found it anti-competitive Geographical Pricing The price variation in different parts of the world can be a business strategy or forced upon by the local market It usually occurs due to difference in PPP, taxes, duties etc Example is Gasoline & Alcohol www.MarketingWeekly.in Index  Price Skimming Charge a high price initially because product is unique and you have a competitive advantage Advantage is not sustainable and eventually price is reduced due to enhanced competition Flagship Smartphones & other electronics Psychological Pricing Marketer wants to entice customer into thinking that product is cheaper Product is available at Rs 199/- instead of Rs 200 Interesting Read: Psychological Pricing w w w. MarketingWeekly.in Index Dynamic Pricing Pricing of Airlines & Hotel keeps on changing based on current availability It helps them to optimize revenue at the same time keep demand intact because of low pricing during low days. Captive Product Pricing If products have complements, the core products are generally offered at a lower price while the captive products which are necessary to use the core product are priced highly E.g. Razors and Blades, Printers and Cartridges www.MarketingWeekly.in Index Bundle Pricing Sellers combine several products in the same package Can be a part of sales promotion Can be used to dispose off inventory www.MarketingWeekly.in Index  B2C B2B (Business to (Business to Customer) CATEGORY Business) Selling products to customers Selling products to companies (Individuals) or firms Sale (Bill) amount are usually small Sale (Bill) amount are usually Large Driven by promotions & panache Driven by efficiency & cost effectiveness Customers want to be entertained Firms want to be educated (elated) about product (Informed) about products Relationships are short-termed Long term Relationships are established between firms Decision making is simple Decision making involves multi-level meetings Centered on desires & gratifications Centered on Logic & rationale Interesting Read: Strategy guide for B2B www.MarketingWeekly.in Index Interesting Read: Community Marketing – a focus on customer retention www.MarketingWeekly.in Index Product Life CYCLE Product life cycle refers to the length of time from when a product is introduced in the market until it's removal from the shops/Stopped production. PLC is classified in 4 or 5 stages. 1 & 2 : R&D and Introduction 3: Growth Phase 4: Maturity 5: Decline Few KPIs are stated in below graph from Kotler. www.MarketingWeekly.in Index E.g. Telecommunication technology 6G 5G 4G 3G 2G www.MarketingWeekly.in Index  PLC Extension When Hyundai’s Creta started losing against Kia Seltos, Creata launched its new Facelift version. Another example: After success of Tata Tiago, they entered premium hatchback segment with Altroz to fend off Maruti’s Baleno. Check-out how Microsoft expanded its Microsoft Office suite? You will get the idea ☺ Interesting Read: : Product LifeCycle of Apple’s iPod www.MarketingWeekly.in Index www.MarketingWeekly.in Index What is a BRAND? In order to find a Job, the first thing you do is build a CV. What does the CV represent? It represents an image of you, a perception, a promise that will be fulfilled once you are hired. This is your brand!! A brand is a perception that the customers have about your product or service. It is an emotional and psychological bonding between your customer and your brand. A trademark is a brand name that is legally differentiated from all the other brands. For Example: Coca Cola is a trademark. Interesting Read: Iconic Ads of Pidilite www.MarketingWeekly.in Index There are two terms sometimes alternately used to talk about a brand: Brand image and Brand experience. In marketing terms, they have two distinct meanings. Brand Experience is the sum total of all contact points with the brand. For example: Advertisements, Buying, Using, Longevity, etc. Brand Image is a virtual construct of a brand inside the minds of the customer; it is the sum total of all the expectations that a customer has about the brand. www.MarketingWeekly.in Index Different brand elements that make a brand: ✓ Name ✓ Colour ✓ Logo ✓ Sound ✓ Theme ✓ Movement ✓ Shape ✓ Smell ✓ Graphics ✓ Taste Example Amazon has been one of the most valuable brands in the recent years because it has maintained its core brand values – ease of use, speed, agility- even while diversifying. Closer home, Reliance Jio in just 4 years has created an enviable brand image that is rooted deeply in India, celebrating its vibrancy, diversity and happiness. www.MarketingWeekly.in Index BRAND VALUE Brand value, is the financial worth of the brand. To determine brand value, businesses need to estimate how much the brand is worth in the market – in other words, how much would someone pay for your brand name. We can also define it as- The difference between what a customer pays for getting the branded product, i.e. from the brand point of view, and a similar product without a revered brand name. The main steps for creating brand value are: www.MarketingWeekly.in Index Brand value vs Brand Equity: There is often a confusion between both these terms. The following table explains the difference between both the terms: Basis for Comparison Brand Equity Brand Value Brand Equity is the worth of Brand Value is the economic the brand that a firm earns worth of the brand, wherein through consumer Meaning the customers are readily consciousness of the brand willing to pay more for a name of the specific product, brand, to get the product. instead of the product itself. Attitude and Willingness of the Net present value of What is it? consumer towards the brand. forecasted cash flows Product and Service Quality, Channel relationships, Derived from Customers Availability, Price and Performance, Advertising, etc. Total financial value of the Indicates Success of the brand brand. www.MarketingWeekly.in Index  THE BRAND VALUE CHAIN The Brand Value Chain Marketing ValueValue Program Customer Market Shareholder value StagesStages Investment Mindset Performance Product Awareness Price Premium Stock Prices Communication Associations Price Elasticities P/E ratio Trade Attitude Profitability Market Elasticities Market place Program Quality Investor Sentiment condition Clarity Competitive reaction Growth Potential Consistency Customer size & Channel Market dynamics Brand value creation begins when the firm targets actual or potential customers by investing in a marketing program to develop the brand, including product research, development, and design; trade or intermediary support; and marketing communications. Based on the initial efforts put in, the firm tries to assess- customers’ mindsets, buying behaviour, and response to price which is subject to change as a result of the marketing program. www.MarketingWeekly.in Index The investment community will then consider market performance, replacement cost, and purchase price in acquisitions (among other factors) to assess shareholder value in general and the value of a brand in particular. Other important factors which contribute to the brand value are the -Marketing Program Quality, Market place condition, and the general Investor sentiment Methodologies to calculate brand value: MOST VALUABLE BRANDS OF THE WORLD: Interesting Read: The Eyewear Industry’s King - Luxottica www.MarketingWeekly.in Index Game of Brands Brand Rivalry May the best brand win! www.MarketingWeekly.in Index What is Brand Rivalry? It can be defined as the competition between brands offering similar line of products to the same target audience at similar prices with the goal of increasing market share and overall revenue. www.MarketingWeekly.in Index Types of Rivalry To win potential customers The idea is to win new potential customers who haven’t bought yours or you competitors products yet. To win rival’s customers The idea is to win the rivals’ customers whilst preserving the brand’s original customers. To win sales from shared customers The idea is to win large share of sales from customers that have subscribed to multiple providers. www.MarketingWeekly.in Index Famous brand rivalries VISA vs Master Card Ever since the plastic money made way in people’s lives, these two financial service providers have been giving competition to each other head-on. Marvel vs DC These two companies took their rivalry to another level by publishing a comic series named ‘Marvel vs DC’ to show open rivalry between the superheroes. www.MarketingWeekly.in Index Famous brand rivalries McDonald’s vs Burger King Serving the same customers at similar prices, Burger King and McDonalds have taken a dig at each other time and again especially over their hamburgers. Coke vs Pepsi With their innovative marketing campaigns, these two famous soft drink giants are able to attract customers even after the customers’ focus shifted towards healthier drinks www.MarketingWeekly.in Index Benefits of Brand Rivalry Builds Loyalty Rivalries help brands get customers take its side and discourages them from using competitors’ products. Gains sympathy Rivalries help smaller brands or start- ups get sympathy votes from its customers Attracts attention If a rivalry become controversial, it brings in free publicity and word of mouth promotion. www.MarketingWeekly.in Index Drawbacks of Brand Rivalry Competitor benefits Rivalries can also provide visibility to a brand’s competitor which can give them attention. Competitor improvement Rivalries increase your competitors’ brand awareness even if you’re pointing at its flaws. Awakening sleeping brands When brands bite more than they chew, they can even lead to awakening of the sleeping brands. www.MarketingWeekly.in Index www.MarketingWeekly.in Index Brand Personality To know about Brand Personality, first you have to know: What is personality Combination of characteristics that form an individual’s distinctive character, in short, an identity. A brand is also an identity at the end of the day, something about the brands that we connect with. You must have heard people say that they ❤️ 'love' Coca-Cola, or 'can't live without' 📱Apple’s iPhone, won't buy ketchup from anyone, but Heinz of us make decisions before we’re 80% rationally aware of them. Instead, our feelings for specific companies are based around one very important concept: our archetype. More precisely, they come from the personality as our ‘archetype’. www.MarketingWeekly.in Index “When properly identified, brand archetypes will reflect the personality of brands and serves to better align personality type with specific Customer Personas “ www.MarketingWeekly.in Index 12 Brand Archetypes Order Freedom Belonging Change www.MarketingWeekly.in Index  12 Brand Archetypes - Explained The Recognizes the boundaries Loves simplicity and are The around them, they don’t let built around the ideology Explorer those restrictions stop of spreading joy Innocent them BRAND VOICE WHAT CUSTOMERS FEEL BRAND VOICE WHAT CUSTOMERS FEEL Motivates to walk on your own Motivated to never settle Positive and kind vibes through Wants to live a beautiful path brand experience life Encouraged to learn from Takes life easy, smile mistakes Encourages others to step Builds trust and connections Feels safe and beautiful Admires the brand outside of their comfort zones through honest and nostalgic inside courage and follow their heart views BRANDS BRANDS www.MarketingWeekly.in Index  12 Brand Archetypes - Explained The Celebrates curiosity while Goes above and beyond to The sharing knowledge with create something unique Sage others for its target audience, and Rebel often they inspire an almost cult-like following BRAND VOICE WHAT CUSTOMERS FEEL BRAND VOICE WHAT CUSTOMERS FEEL Encourages customers to think Absorbs the knowledge Honest, raw and loud Experiences the in new ways uncommon Digs deeper in the solution finding Thrilled Message is always factual, Speaks fearlessly about topics without unnecessary emotions Considers the brand as a that can be scary, inconvenient Feels safe and beautiful teacher, a mentor or controversial inside BRANDS BRANDS Check the remaining 10 Brand Personalities Here www.MarketingWeekly.in Index Campaigns example w w w. MarketingWeekly.in Index BRAND IDENTITY PRISM BRAND IDENTITY PRISM www.MarketingWeekly.in Index BRAND IDENTITY PRISM Before digging into the details of the Brand Identity Prism, let us understand brand association. What comes to your mind when you think of Coca-Cola ? Happiness? Refreshing? The iconic coke bottle? Young and socializing? Whatever you think, but most of us would associate positively with Coke. And why so? The answer is simple: Coca-Cola has done a brilliant job in establishing itself as a positove brand no matter how harmful the drink could be. The Brand Identity Prism is a hexagonal diagram that helps us understand how the different elements of a brand relate to each other. It was a term coined by Jean- Noel Kapferer in 1996. According to Kapferer: “Strong brands are capable of weaving all aspects [of the prism] into an effective whole in order to create a concise, clear, and appealing brand identity.” w w w. MarketingWeekly.in Index Let’s discuss each element of the Brand Identity Prism: Physique - Physique is the physical characteristics and iconography of the brand. It is the basis of the brand which visually represents the brand’s aspirations and how you wish it to be perceived. Personality - How a brand communicates with the outside world through its tone of voice, design and copywriting. Culture – The principles and the values on which the brand bases its behavior Relationship - The understanding between the brand and its customers, and what the customer hopes they are getting from the brand beyond the actual product or service. Reflection - The stereotypical user of the brand. A brand is likely to have several buyer personas but they will have a go-to subset of their target market that they use in their messaging. Self-image - How the customer perceives their ideal self. By understanding a customer’s ‘ideal identity’ – what they aspire for and how they tend to look and behave ideally – brands can target their messaging accordingly www.MarketingWeekly.in Index  Brand Identity Prism for APPLE Brand Identity Prism for L'Oréal Interesting Read: LoveMark in Marketing w w w. MarketingWeekly.in Index RURAL MARKETING www.MarketingWeekly.in Index  Rural Marketing The process of planning, and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchange (for rural segments) that satisfy individual and organizational objectives. *Adapted from AMA definition of marketing w w w. MarketingWeekly.in Index  Understanding today’s rural consumer Open to new High utility orientation experiences with & value-seeking from increasing disposable each purchase income Open to be connected Price-sensitive but through digital willing to spend on channels trusted brand Strongly attached to Majority shopping is Aspires to mirror his local culture & done on special urban counterparts language even on occasions social media www.MarketingWeekly.in Index  4 As - The key factors in a rural market Availability Acceptability Planned trade -off between Modifying the product according to distribution cost & market the rural conditions and facilitating penetration to ensure product ease of usage to make user reaches remote areas. comfortable with using the product Affordability Awareness Lower SKUs to prompt Using traditional ATL marketing low-risk trials, along with convenient activities like TV/Radio ads to loans or money-lending facilities for improve brand recall & connection bigger purchases www.MarketingWeekly.in Index Tweaking the marketing mix for the rural market Product strategies Modifying product design to provide convenience of usage to the rural market Smaller SKUs to improve trials for first-time users Improving sturdiness & power to improve attractiveness to a rural consumer Increasing utility over fancy features to provide maximum ROI Adaptive brand-building according to the audience tastes & preferences ISPAT industries branded its galvanised LG Electronics introduced Sampoorna TV corrugated sheets as “ISPAT Kavach” & Tata aimed at rural audience, India’s first TV Steel branded their product as Tata Shakti in with a Devanagari script on screen order to connect strongly to rural audience & display for vernacular languages improve top of mind recall www.MarketingWeekly.in Index Tweaking the marketing mix for the rural market Pricing strategies Differential/reduced pricing as compared to urban areas Low Unit Price (LUP) packing or “paise packs” of even premium brands No-frills Economy pricing – Coinage pricing, value pricing Discounts for special events according to local festivals & events Schemes for retailers like offers & quantity discounts to increase loyalty Credit facilities & promotional offers according to agricultural cycle Free gifts that provide additional utility Bundled pricing to promote maximum value for money HDFC Festive treats is the rural phase of HDFC’s CavinKare introduced 4ml financial services, where rural and semi-urban sachets of Chik shampoo priced consumers will be able to avail offers specially 50 paisa each at a time when created for them, like discounted processing fees for other shampoos were sold in Rs.2 loans, reduced EMIs and discounts on 1000+ brands. packs www.MarketingWeekly.in Index Tweaking the marketing mix for the rural market Distribution strategies Local Markets/ Haats to reach out to maximum number of consumers Fairs & festival grounds/melas to grab high attention Wholesalers and kirana retailers to reach out to all neighbourhoods Vans/ mobile traders in order to have deeper penetration into remote areas Syndicate Distribution to sell & distribute non-competitive goods together through a common distribution channel Hub & Spoke model of distribution to cover dispersed crowds Self-help groups who can be employed for door-to-door selling Exclusive bazaars/ retail outlets like ITC e-choupal Dabur Pudinhara set up 22ft tall Pudinhara HUL’s rural sales promoters educate bottle along with Thandak zone in women in villages on distribution & Nauchandi mela which is a festive selling of HUL products through Project congregation of several villages. Shakti www.MarketingWeekly.in Index Tweaking the marketing mix for the rural market Promotion strategies Mass media like television, radio, films, newspapers & magazines in local languages Rural-specific media like audio-vans, posters, pamphlets Door-to-door selling through trained salesmen/locals Outdoor campaigns with billboards, painted walls Entertainment programs like folk dance, street play, puppet-shows Mobile publicity vans with short film screening capacity Loudspeaker announcements & posters at festivals/ melas/ local markets Utilising the opinion leader (Village head or any other respected person in the village) as a promoter Word-of-mouth promotion facilitated through referral schemes Product demonstration & free sample distribution in public gatherings “Thanda matlab CocaCola” gave the beverage Asian Paints promoted Utsav paint company a breakthrough in rural Indian market. category by painting the Mukhiya/post Coca-Cola also launched Accessibility campaign office of a village 6 months before the to bring the smallest SKU at Rs.5, competing launch, and organising painters meets with other drinks like tea & lemonade www.MarketingWeekly.in Index Cause Marketing www.MarketingWeekly.in Index  Forms of cause marketing Portion of Purchase Businesses donate a portion of their sales to a Pin Ups Volunteerism Rather than asking for a nonprofit or cause Primarily for in-house use. donation, businesses will ask if Customers will donate and customers will volunteer their fill our their name on paper time to a certain organization icon, which will then be hung up in the store Point of Sale Campaigns Digital Engagement A donation requested at the Businesses create a POS by a corporation but "digital experience" made by the customer using social media Transactional Campaign Buy One Give One A corporate donation triggered Businesses will donate a by a consumer action product with comparable value (e.g. sharing a message social to a designated product based media, making a purchase, etc.) on each sale of that product www.MarketingWeekly.in Index Cause marketing in the time of COVID 19 “We’re all in this together.” That is the message many companies are communicating to customers and the general public while the world grapples with the COVID-19 health crisis Ben & Jerry’s – #LiftTheBan, partnered with Refugee Action as part of the Lift the Ban coalition Facebook is offering $100 million cash + $100 million in advertising credits to publishers Cadbury’s – Donate Your Words, joined with Age UK to fight loneliness, especially in this COVID times Burger King offers 2 free kids meals with any meal purchase during coronavirus crisis www.MarketingWeekly.in Index Examples TATA Tea “JAAGO RE” This campaign took up social activism allowing the company to connect with issues such as voter registration, corruption and women’s rights Before this campaign TATA Global accounts for 18.7% of market share and ranked number 2 after HUL (21.5% market share). Post this campaign launch they captured the number #1 position with 22% (currently at 19%) market share Lifebuoy “GONDAPPA” Once a week, a volunteer visit homes to make the villagers aware of the need to wash their hands with soap Overall diarrhea incidence reduced from 36% to 5% The campaign has reached out to 180 Million people Why? – Diarrhea alone killed 13% of children under the age of five and as per UNICEF, 31% of children have access to basic sanitation Interesting Read: Brand Activism www.MarketingWeekly.in Index Examples Coca Cola “5BY20” Program to help 5 million female entrepreneurs — from fruit farmers and artisans to recyclers and retailers —become part of our value chain by 2020 3.2 million women in 92 countries have started businesses as part of our 5by20 program HORLICKS “AHAR ABHIYAN” The campaign will aim to address issues of malnutrition among the youth. Under the campaign, a contribution of Re 1 will be done towards the initiative from the sale of Horlicks in the state 14% lift in sales, because of this campaign ( in West Bengal) www.MarketingWeekly.in Index Examples P&G “PROJECT SHIKSHA” Provide children from underprivileged backgrounds access to holistic education. Focused efforts in three main areas - improving education infrastructure, empowering marginalized girls through education and improving learning outcomes. Launched in 2005, raised over Rs 22 Crore for the cause Overall sales increased by 5 times Gillette “THE BEST MAN CAN BE” Launched on January 13, 2019 with the digital release of a short film entitled We Believe: The Best Men Can Be, to address negative behavior among men, including bullying, sexism, sexual misconduct, and toxic masculinity Amassed over 11 million views in just eight months w w w. MarketingWeekly.in Index Examples Vistara “FLY THE NEW FEELING” Partnered with Salaam Baalak’s trust which is a non-profit, as well as a non-governmental organization, is providing support to street children of Delhi and Mumbai to fly 12 kids on its first flight ever Mahindra “SEED THE RISE” A digitally-driven crowd-funding campaign to enhance the lives of farmers Got donations amounting to INR 1 crore and will be utilized for farmer welfare through five carefully hand-picked projects in collaboration with Four NGOs Nestle “EDUCATE THE GIRL CHILD” In partnership with Mumbai-based education reform non-profit Nanhi Kali in late 2016 in order to Educate the Girl Child in a long term project of the same name Interesting Read: Brand Activism www.MarketingWeekly.in Index MEME MARKETING www.MarketingWeekly.in Index MEME MARKETING The word meme coined from a Greek word ‘mimeme’ which means "to imitate". It was first used by Richard Dawkins in his book The Selfish Gene in 1976. He argued that virality didn’t just apply to infectious diseases, but also to anthropological settings. He defined a meme as any shareable cultural artifact that spreads through like wildfire. Memes are also considered as cultural analogues to genes as they self-replicate, mutate, and respond to selective pressures. www.MarketingWeekly.in Index MEMES - the future of social marketing: Meme marketing is a kind of marketing in which memes from various mediums like word of mouth and social media networks are used to fulfill marketing goals. It is the practice of using users to promote a brand or product by creating appealing, engaging, and fast-spreading news or content. Millennials spend over 200 minutes online every day. Memes are so prolific that millennials and Gen Z are laughing and sharing thousands of memes everyday. This gives brands plenty of opportunities to engage with their audience. www.MarketingWeekly.in Index The drawback of traditional brand marketing on social media is that it often has low interaction. People tend to skip over lame, commercialized content and get to their normal proceedings. Gen Z is very ad-averse. They can smell promotion from a mile away, and they aren’t having any of it. Memes aren’t overly promotional -- they make people laugh with a casual reference to your brand. How Heinz used MEME marketing Heinz is a perfect example of meme creation in action. The condiment brand wanted to increase brand awareness and engagement on its social media. It implemented a meme marketing campaign which earned 4 million impressions with 80k engagements. Heinz cleverly fed into the timeless debate on tomatoes being a fruit or a vegetable. They asked people to take sides with hashtags and posted graphics saying, “If you had to decide right now if a tomato is a fruit or a vegetable?” www.MarketingWeekly.in Index Netflix has majored in meme marketing FOMO TRIGGERED MEME-JACKING www.MarketingWeekly.in Index When Zomato started a meme trend and others followed it www.MarketingWeekly.in Index Important elements of Meme Marketing: Be native. It is very important that a digital native is writing and sharing memes from the brand so the lingo is on point. Otherwise, the audience will immediately pick up that the brand is trying too hard to be cool which will ultimately hurts the brand. Be relatable. It’s guaranteed that only a sliver of the population will understand a meme and it is not going to appeal everyone. So a meme should be directed towards the target audience and should cater to their interests. Watch the timing. An existing meme should only be used if it is still trendy and if a new meme is created, the cultural climate should be right. Otherwise, it could come off as tone deaf and out of touch. Conclusion: Meme marketing not only helps brands increase their brand exposure but also drives their marketing goals, be it familiarize the target group with the product or bring traction on site. Meme marketing as against to traditional as are relatively inexpensive, which is why brands are including meme marketing in their core marketing strategy. www.MarketingWeekly.in Index But it is not everyone’s cup of tea! Though Meme Marketing appears to be an easy affair, agencies often struggle with it. The key to it is being relatable, funny and at the same time the brand shouldn’t come off as trying too hard otherwise it can lead to a bad reputation. www.MarketingWeekly.in Index www.MarketingWeekly.in Index Emotional Marketing Most customers' buying decisions are driven by emotions rather than logic, which makes emotional marketing important. Emotional Marketing is a marketing strategy that uses basic emotions to elicit customer response. It tells a story that connects with the customers in a humane way. All the emotions are aligned with the brand's objective, vision, and mission. Emotional marketing leads audience tends to notice, remember, and later buy. They reach more audiences through shares on social media and results into brand loyalty. First impressions (which last only a few seconds) make the best impressions. Emotional marketing can make great first impressions. If marketed wisely, the brand tends to stand out in the consumer's mind. Studies show that emotional marketing campaigns work twice as better as other marketing campaigns. Emotions are primarily divided into four broader groups, namely anger, sorrow, happiness, and surprise/fear. Examples: Happiness: Positive emotions like Happiness increase engagement. Android's "Friends Furever" showing pairs of different animals together in Harmony. This ad automatically brings a smile. 115 www.MarketingWeekly.in Index Sorrow: Sad news spreads faster and creates awareness among people. WWF created an awareness campaign on how human actions lead to animal cruelty. How animals have been mistreated, and human interferences are affecting their habitat. Anger: Negative sentiment like anger can have an immediate impact and can change the audience's perspective. Earlier, the phrase "Like a Girl" was mostly used in a belittling way. P&G’s Always brand launched “LikeAGirl” Campaign. Through this campaign, the positive sentiment of Women empowerment was portrayed which attracted women all over the world. Fear: Through fear, there will be a sense of urgency, and the audience will start acting immediately. Ads like Smoking is injurious to health and can cause lung cancer elicit fear. Here are a few things that work well with Emotional marketing. Colour psychology plays a huge role. A movement towards a good cause – One example is "One day without shoes" campaign started by TOMS. Creating Viral campaigns – Dollar Shave club took an everyday problem and the advertisement (our blades are f*cking great) became viral overnight Building a community through word of mouth Interest Read: Article www.MarketingWeekly.in Index  Credits: HubSpot www.MarketingWeekly.in Index AIDA AIDA is the acronym for Attention - Interest - Desire - Action. AIDA was developed by E. St. Elmo Lewis in 1898. AIDA Model is a linear series of cognitive thinking stages a prospective customer experiences while purchasing a product or a service. It is a marketing funnel leading to the final purchase of the product. It is popular in PR campaigns, digital marketing and sales strategies. It describes the journey of the customer from awareness of the product until the purchase.E. St. Elmo Lewis developed AIDA. Attention - The first stage is for creating brand awareness about the product or service for the consumer. Customer’s attention should be drawn through various marketing and advertising efforts. Interest - Once the customer is aware of the product, the brand must work towards increasing the customer's interest level. The customer learns about the product benefits and if the brand fits their lifestyle. If interested, they want to research further. Detailed product information will be communicated through website, video, brochure, etc. Desire - The customer builds an emotional connection with a particular brand and becomes a loyal customer. There will be a transition from “liking” to “wanting” the product. It is the desire to buy the product addressing the customer’s needs 118 www.MarketingWeekly.in Index  Action - It is the final stage in the AIDA model where the customer initiates action such as buying the product, purchase intention, shopping around, engaging in trial, etc. Example: Suppose there is an offline store. Attention is running brand awareness campaigns months before the launch. Interest is offering a discount on first time purchase of the product and gauging how many customers were excited about it. Desire is that customers want to buy your products. Action is the customer comes to the store and purchases the product. Criticism: The post-purchase behaviour such as customer satisfaction, repeat purchase is not taken into consideration. Many external factors (excluding marketing efforts) affecting customer purchasing behaviour are not taken into account. Interesting Read: How Horlicks became a Market Leader? 119 www.MarketingWeekly.in Index World of Co-branding www.MarketingWeekly.in Index COBRANDING In late 1990s and early 2000s, many of us had this thought of a cricket team with Indian batsmen and Pakistani pacers. The thought of how brilliant a team would it be if it had Sachin, Sourav, Sehwag and Wasim, Waqar & Shoaib Akhtar. So what we were hoping for was a “new product “ – the Indo-Pak cricket team which was created by “two different brands” – the Indian Cricket SOME CO-BRANDING EXAMPLES YOU Team and the Pakistan Cricket team thus SEE AROUND creating a strategic alliance which benefits both. This is exactly what “Co-Branding” is! Cobranding is the coming together of 2 or more brands in a partnership to create a product or to have a common promotional event. E.g. Oyo Hotels partnering with Unilever for hygiene post Covid19 www.MarketingWeekly.in Index As the Brand Matters puts it – the main purpose is to create the value equivalent to 1+1=3, that is to increase the cumulative market strength , profitability, cost savings and perceived value. Advantages Increasing Customer Bases Creating New Audiences Creating Unique Experiences. For Example: Nike+Ipod Sports Kit. Increased brand awareness and TOMA – Top-of- the-mind-awareness. Sharing Risk or Losses. Disadvantages Cross Contamination; Association of Nike with Lance Armstrong’s Livestrong brand suddenly jeopardized due to doping allegations. Too many co-branding alliances can result in brand dilution www.MarketingWeekly.in Index Examples PepsiCo-owned Lay’s has partnered with brands like Cadbury, KFC, Urban Company, Zomato, Spotify for special co-branded packs with a custom gratitude message thanking the brand and the unsung heroes. The name of the campaign is “HeartWork”. Swiggy/Zomato offering discounts on payment of orders with Amazon Pay or Phone Pe. Interesting Read: Cobranding in Marketing www.MarketingWeekly.in Index  Planogram The art of Shelf-planning www.MarketingWeekly.in Index PLANOGRAM: The art of shelf planning What is planogramming?