UM24BB143A-Marketing Management

UNIT 1
INTRODUCTION TO MARKETING
HISTORY OF MARKETING:

It is hard for many to believe, but when compared to economics, production and operations,
accounting and other business areas, marketing is a relatively young discipline having
emerged in the early 1900s. Prior to this time most issues that are now commonly associated
with marketing were either assumed to fall within basic concepts of economics (e.g., price
setting was viewed as a simple supply/demand issue), advertising (well developed by 1900),
or in most cases were simply not yet explored (e.g., customer purchase behaviour, importance
of distribution partners)

Lead by marketing scholars from several major universities, the development of marketing
was in large part motivated by the need to dissect in greater detail relationships and
behaviours that existed between sellers and buyers. In particular, the study of marketing lead
sellers to recognize that adopting certain strategies and tactics could significantly benefit the
seller/buyer relationship. In the old days of marketing (before the 1950s) this often meant
identifying strategies and tactics for simply selling more products and services with little
regard for what customers really wanted. Often this led companies to embrace a “sell-as-
much-as-we-can” philosophy with little concern for building relationships for the long term.

But starting in the 1950s, companies began to see that old ways of selling were wearing thin
with customers. As competition grew stiffer across most industries, organizations looked to
the buyer side of the transaction for ways to improve. What they found was an emerging
philosophy suggesting that the key factor in successful marketing is to understanding the
needs of customers. This now famous “marketing concept” suggests marketing decisions
should flow from FIRST knowing the customer and what they want. Only then should an
organization initiate the process of developing and marketing products and services. The
marketing concept continues to be at the root of most marketing efforts, though the concept
does have its own problems (e.g., doesn’t help much with marketing new technologies) a
discussion of which is beyond the scope of this tutorial. But overall marketers have learned
they can no longer limit their marketing effort to just getting customers to purchase more.
They must have an in-depth understanding of who their customers are and what they want.
THE EMERGENCE OF MARKETING

After the Second World War, especially during the fifties and sixties, the size and
characteristics of market changed drastically in most of the countries across the world. There
was great increase in the disposable income of the average family, population increased
substantially, the new variety of products and services were introduced that strengthened the
consumer market, and selling of products and services became more difficult because of the
stiff competition among the producers. Abundant choices were made available to the
consumer and consumer began to occupy a place of unique importance. The firms realized
that it was not enough to made one time sale to the consumer but they have to make their
products so differentiated so that the consumers who once purchased their product, came
back to them again and again whenever they needed the product. They also had to ensure that
product is available at the place convenient to the consumers. In addition, price should be
realistic and there should also be complaint/ grievance handling mechanism at the firm level.
And that is how, the concept of marketing emerged.

DEFINITION OF MARKETING
According to “Philip Kotler” and AMA (American Marketing Association).

Market is a PUBLIC PLACE where buyers and sellers come and meet and make their
personal transaction.

Marketing has been defined in various ways – the definition that serves our purpose best is as
follows; Marketing is a social & managerial process by which individuals & groups obtain
what they need & want through creating, offering, & exchanging products of value with
others.

MARKETING MANAGEMENT
Management is the process of getting things done in an organised and efficient manner.
Marketing management aims at efficient operation of marketing activities.

Marketing management smoothen the process of exchange of ownership of goods and

services from seller to the buyer. Marketing management, like all other areas of management
comprises of the function of planning, organising, directing coordinating and controlling.

NATURE OF MARKETING
• Exchange is the essence of marketing.
• Marketing is customer/ consumer oriented.
• Marketing starts and ends with customers/ consumers.
• Modern marketing precedes and succeeds production.
• Marketing is goal oriented and the goal being profit maximization through satisfaction of
human needs.
• Marketing is a science as well as an art.
• Marketing is the guiding element of business (It tells what, when, how to produce;
Marketing is capable of guiding and controlling business.
• Marketing is a system.
• Marketing is a process, i.e., series of interrelated functions.

Scope of marketing
Marketing has a very wide scope it covers all the activities from conception of ideas to
realization of profits. Some of them as discussed as below:

• Study of Consumer Wants and Needs: Goods are produced to satisfy consumer wants.
Therefore, study is done to identify consumer needs and wants. These needs and wants
motivates consumer to purchase.
• Study of Consumer behaviour: Marketers performs study of consumer behaviour.
Analysis of buyer behaviour helps marketer in market segmentation and targeting.
• Product Planning and development: It includes the activities of product research,
marketing research, market segmentation, product development, determination of the
attributes, quantity and quality of the products.
• Branding: Branding of products is adopted by many reputed enterprises to make their
products popular among their customer and for many other benefits. Marketing manager
has to take decision regarding the branding policy, procedures and implementation
programs.
• Packaging: Packaging is to provide a container or wrapper to the product for safety,
attraction and ease of use and transportation of the product.
• Channels of Distribution: Decision regarding selection of most appropriate channel of
distribution like wholesaling, distribution and retailing is taken by the marketing manager
and sales manager.
• Pricing Policies: Marketer has to determine pricing policies for their products. Pricing
policies differs from product to product. It depends on the level of competition, product
life cycle, marketing goals and objectives, etc.
• Sales Management: Selling is a part of marketing. Marketing is concerned about all the
selling activities like customer identification, finding customer needs, persuading
customer to buy products, customer service, etc.
• Promotion: Promotion includes personal selling, sales promotion, and advertising. Right
promotion mix is crucial in accomplishment of marketing goals.
• Finance: Marketing is also concerned about the finance, as for every marketing activity
be it packaging, advertising, sales force budget is fixed and all the activities have to be
completed within the limit of that budget.
• After Sales services: Marketing covers after sales services given to customers,
maintaining good relationships with customers, attending their queries and solving their
problems.

IMPORTANCE
1. ANALYSING MARKET OPPORTUNITIES:

Marketing management collects and analyses information related to consumer’s needs, wants
and demands, competitor’s marketing strategies, changing market trends and preferences.
This helps to identify market opportunities.

2. DETERMINATION OF TARGET MARKET:

Marketing management helps to identify the target market that the organization wishes to
offer its product.

3. PLANNING AND DECISION MAKING:

Marketing management helps to prepare future course of action. Planning relates to product
introduction, diversification. Decision making regarding pricing, selection of promotional
mix, selection of distribution channel is taken by the marketing management.

4. CREATION OF CUSTOMER:

Consumers determine the future of the market .Therefore providing the best product to the
consumer according to their preference is the important task of marketing. Marketing
management helps in creation of new customers and retention of current customers.
5. HELPS IN INCREASING PROFIT:

Marketing caters to the varied and unlimited needs of consumers. Marketing management
helps to increase profit and sales volume. This is achieved by expansion of market and
increasing customers.

6. IMPROVEMENT IN QUALITY OF LIFE:

Marketing management aims at providing innovative product and services to the customers.
Marketers continuously strive to incorporate new technology and mechanism in their product
to provide more satisfaction to customers than before. This improves quality of life and
makes life of consumers easier than before.

7. EMPLOYMENT OPPORTUNITIES:

Marketing process is a combination of different activities like research work to assess the
marketing environment, product planning and development, promotion, distribution of
product to customers and after sales service. Marketing process requires researcher,
production engineer, different distribution intermediaries, sales personnel also create
employment opportunities in advertisement section. Thus, marketing management opened up
different employment avenues thus creating employment opportunities.

Core marketing concepts provide a framework for understanding the principles and practices
of marketing.

Needs, Wants, and Demands :

Needs are basic requirements, wants are specific desires, and demands are wants backed by
buying power.

Products and Services:

Products are tangible goods, while services are intangible activities or benefits.

Value, Satisfaction, and Quality:

Value is what customers receive in exchange for their money, satisfaction is a positive feeling
about a purchase, and quality refers to the overall excellence of a product or service.

Exchange, Transactions & Relationship

Exchange is one of the four ways people can obtain products.

a. Self-production.

b. Coercion.

c. Begging.

d. Exchange.

Exchange is the act of obtaining a desired product from someone by offering something in
return.

Transactions –

These are basic unit of exchange. A transaction consists of a trade of values between two
parties.

➢ Dimensions of transactions -

• At least two things of value.

• Agreed upon conditions.

• A time of agreement.

• A place of agreement.

➢ Transaction v/s Transfer

• The process of trying to arrive at mutually agreeable terms is called Negotiation.

• Transaction marketing, Relationship marketing, Marketing network.

Markets –

It consists of all potential consumers sharing a particular need or want who might be willing
& able to engage in exchange to satisfy that need or want.

Marketing –

It means Working with markets to actualize potential exchanges for the purpose of satisfying
human needs & wants.

Marketer –

It means someone seeking a resource from someone else & willing to offer something of
value in exchange.

EVOLUTION OF MARKETING MANAGEMENT

Evolved from the basic considerate of producing goods and services in the most cost-
effective way.

Traditional concepts:
• Exchange Concept: holds that the exchange of a product between seller & buyer is the
central idea of marketing. Exchange is an important part of marketing, but marketing is a
much wider concept.
• Production Concept: is one of the oldest concepts in business. It holds that consumers
will prefer products that are widely available & inexpensive. Manager of production-
oriented business concentrate on achieving high production efficiency low cost & mass
distribution.
• Product Concept: holds that consumers will prefer those products that are high in
quality, performance or innovative features. Managers in these organization focus on
making superior products & improving them over time.
• Selling Concept: holds that consumers, if left alone, will ordinarily not buy enough of the
organizations product and thus the organization must undertake an aggressive selling
promotion effort for pushing its products. It implies selling what is made, rather than
making what can sell.

Modern concepts
• The Marketing concept emerged in the mid 1950's. The business generally shifted from
a product-centered, make & sell philosophy, to a customer centered, sense & respond
philosophy.
The job is not to find the right customers for your product, but to find right products for
your customers.
The marketing concept holds that the key to achieving organizational goals consists in
determining the needs and wants of target markets and delivering the desired satisfaction
more effectively and efficiently than competitors.
Every department & every worker should think customer & act customer.
• Social or Societal Marketing Concept holds that the organizations task is to determine
the needs, wants and interests of target markets and to deliver the desired satisfaction
more effectively and efficiently than competitors in a way that preserves or enhances the
customers' and the society's wellbeing.
It involves understanding broader concerns & the ethical, environmental & legal and
social context of marketing activities & programs.
• The Holistic Marketing Concept is based on the development, design and
implementation of marketing programs, processes and activities that recognizes their
breadth and inter-dependencies.
 Holistic marketing is a marketing philosophy that believes 'everything matters' and that
a business cannot exist.
This is an approach which proposes that marketing should be looked from a broad and
integrated perspective and not as an isolated management function.

FUNCTIONS OF MARKETING

1. GATHERING AND ANALYSING MARKET INFORMATION

It refers to conducting research to understand what customer wants to buy, when they are
likely to buy, in what quantity they will buy, what price they will be able to pay, what
purpose the customer is buying etc.

2. MARKETING PLANNING

After conducting research, the marketer has to plan the steps to achieve marketing
objectives under market planning. They make plans to increase production or to increase
sale or to use promotion tools and specify the action programs to achieve these objectives.

3. PRODUCT DESIGNING AND DEVELOPMENT

This activity refers to the decisions like what should be the quality standards used in
product, what shape or design would be used, what type of packaging, how many models,
how it can be made better than the competitor's product etc.

4. STANDARDISATION AND GRADING

Standardization means producing goods of predetermined quality standards to achieve

uniformity and consistency in the product.

Grading is the process of classification of products into different groups on the basis of
size, quality and other important characteristics.

5. PACKAGING AND LABELLING

Packaging refers to designing of packets, wrappers and cartons etc, which are used to
pack the product. Labelling refers to designing the labels to put on the package which
may vary from simple tag to complex graphics.

6. BRANDING
 Branding is special name of a product which helps to distinguish the product of a firm
with that of the competitor. For, example, Sony, BPL, LG using company name as brand
names whereas Ariel, Tide, Surf Excel etc.

7. CUSTOMER SUPPORT SERVICES

Customer support services refer to after sales services, handling customer complaints,
maintenance services, consumer information, technical services etc.

8. PRICING OF PRODUCTS

Price means the money which a customer has to pay to buy a product or service. Price is
an important factor that affecting success or failure of a product.

9. PROMOTION

It involves informing the customers about the firm's products, its features etc. and
persuade them to purchase these products. E.g., Advertising, Sales promotion, personal
selling etc.

10. PHYSICAL DISTRIBUTION

It covers all the activities requires to physically move goods from manufacturers to the
customers

11. TRANSPORTATION

It involves physical movement of goods from one place to another. It creates place utility.

12. STORAGE OR WAREHOUSING

It is necessary to make arrangement of goods in order to maintain a regular supply of

goods in the market. It creates time utility.

Marketing Environment
• Businesses do not operate in isolation in the market place. There are various factors/
forces, that directly or indirectly influence the organizations business activities.
• All these forces/ factors form the Marketing Environment of an organization. The
company operates in a complex marketing environment, consisting of uncontrollable
forces, to which the company must adapt.
• Marketing is the sum total of trading forces operating in a market place, over which a
business has no control, but which shapes the manner in which the business functions and
is able to satisfy its customers.
• A marketing environment is what surrounds and creates impact on business organizations.

Marketing environment is un-controllable and ever changing. The key elements of

marketing environment are as follows :-

• Internal Environment
• Micro Environment
• Macro Environment

Internal Environment
• The internal environment refers to the forces and actors that are within the organization
and affects its ability to serve its customers.

• A Company's marketing system is influenced by its capabilities regarding production,

financial & other factors. Hence, the marketing management/manager must take into
consideration these departments before finalizing marketing decisions.

• It includes marketing managers, sales representatives, marketing budget, marketing plans,

procedures, inventory, logistics, and anything within organization which affects
marketing decisions, and its relationship with its customers.

• The Research & Development Department, the Personnel Department, the Accounting
Department also have an impact on the Marketing Department.

• It is the responsibility of a manager to company-ordinate all department by setting up

unified objectives.

Micro Environment
• The micro environment refers to the forces that are close to the marketing organization
and directly impact the customer experience.

• It includes the organization itself, its suppliers, marketing intermediaries, customers,

markets or segments, competitors, and publics.

• Happenings in micro environment is relatively controllable for the marketing

organization.
Micro Environmental Factors
Suppliers are the people who provide necessary resources needed to produce goods &
services. Policies of the suppliers have a significant influence over the marketing manager's
decisions. A company must build cordial & long-term relationship with suppliers.

Marketing Intermediaries are the people who assist the flow of products from the producers
to the consumers and they include wholesalers, retailers, agents, etc. These people create
place & time utility. A company must select an effective chain of middlemen, so as to make
the goods reach the market in time.

Consumers are the center point of all marketing activities. The main aim of production is to
meet the demands of the consumers. Each type of consumer has a unique feature which have
to be considered by the marketers before taking the decisions. otherwise, the company is
bound to fail in achieving its objectives. A company's marketing strategy is influenced by its
target consumer

Competitors: A prudent marketing manager has to be in constant touch regarding the

information relating to the competitor's strategies. He has to identify his competitor's
strategies, build his plans to overtake them in the market to attract competitor's consumers
towards his products.

Public: A Company's obligation is not only to meet the requirements of its customers, but
also to satisfy the various groups. A public is defined as "any group that has an actual or
potential ability to achieve its objectives". The significance of the influence of the public on
the company can be understood by the fact that almost all companies maintain a public
relation department. A positive interaction with the public increases its goodwill irrespective
of the nature of the public. A company has to maintain cordial relation with all groups, public
may or may not be interested in the company, but the company must be interested in the
views of the public.

Macro environment
• Macro environment refers to all forces that are part of the larger society and affects the
micro environment.

• It includes demography, economy, politics, culture, technology, and natural forces.

• These are the factors/forces on which the company has no control. Hence, it has to frame
its policies within the limits set by these forces.

Macro Environment factors

Demography is defined as the statistical study of the human population & its distribution that
forms the market. A company should study the population, its distribution, age composition,
status, etc before deciding the marketing strategies.

Economic Environment: The economic environment affects a consumer's purchasing

behavior either by increasing his disposable income or by reducing it. Eg: During the time of
inflation, the value of money comes down. Hence, it is difficult for them to purchase more
products.

Physical Environment or Natural Forces: A company has to adopt its policies within the
limits set by nature. A man can improve the nature but cannot find an alternative for it. Nature
offers resources, but in a limited manner. Companies must find the best combination of
production for the sake of efficient utilization of the available resources. Otherwise, they may
face acute shortage of resources. Eg: Petroleum products, power, water, etc.

Technological Factors: Every new invention builds a new market & a new group of
customers. A new technology improves our lifestyle & at the same time creates many
problems.

Social & Cultural Factors: Most of us purchase because of the influence of social &
cultural factors. The lifestyle, values, believes, etc are determined among other things by the
society in which we live. Each society has its own culture which shapes our behavior. A
marketing manager must study the society and culture in which he operates and must try to
anticipate the changes and new marketing opportunities.

political Factors includes all laws, government agencies, and groups that influence or limit
other organizations and individuals within a society. It is important for marketers to be aware
of these restrictions as they can be complex and can profoundly affect a firm's marketing.
Marketing Mix

•The Marketing Mix is one of two interrelated components of strategy.

•The Marketing Mix, more popularly referred to as the 7Ps of Marketing is a set of
controllable and interrelated variables composed of product, place, price and promotions that
a company assembles to satisfy a target group better than its competitor.

•Marketing Mix strategy is choosing and implementing the best possible course of action to
attain the organization's long- term objectives and gain competitive edge.

THE 7 PS OF MARKETING
The 7 Ps are a set of recognised marketing tactics, which you can use in any
combination to satisfy customers in your target market. The 7 Ps are controllable,
but subject to your internal and external marketing environments. Combining these
different marketing tactics to meet your customers’ needs and wants is known as
using a tactical marketing mix.
1. Product

The first P, Product, refers to the goods or services that a business offers its customers. In
other words, the product is the physical or intangible offering that a business sells to its
customers. The Product element of the 7Ps covers product design, quality, features, and
packaging. To execute successful marketing, businesses must understand their target market
and ensure their products align accordingly.

2. Price

The Price element of the 7Ps covers the cost of goods or services. The price is the amount of
money that customers pay for a product. It is important to set a price that is both competitive
and profitable.

3. Place

The Place element of the 7Ps refers to the distribution channels of the business. It can be a
physical store, an online store, or a combination of both. The goal of this P is to make the
products easily accessible to customers.
4. Promotions:
To build and improve consumer demand. Promotions has four components called the
Promotions Mix as follows:
• Advertising - to effectively inform and persuade the target market
• Public Relations – to offer a positive image of the company and the brand
• Selling to get the customers buy
• Sales Promotions - to convince customers to buy immediately
5. People

The people are the employees, customers, and other stakeholders who interact with a
business. It is important to create a positive and memorable experience for these people.
For example, ensuring customer service representatives respond politely and efficiently
impacts customer satisfaction levels.
6. Physical Appearance
The Physical appearance element of the 7Ps refers to the tangible aspects of a product,
including packaging, branding, and more. Ensuring the tangible aspect of a product aligns
with the customer’s perception of the brand is essential in setting the business apart from
competitors.
7. Process
The Process element of the 7Ps refers to the procedures and steps involved in delivering a
product or service to the end-user. It is important to streamline the process and make it as
efficient as possible.

Recent trends in marketing:

Ethical marketing
Ethical marketing refers to the application of marketing ethics into the marketing process.
Marketing ethics has the potential to benefit society as a whole, both in the short- and long-
term.

Study of Ethical marketing should be included in applied ethics and involves examination of
whether or not an honest and factual representation.

Marketing ethics has influenced companies and their response is to market their products in a
more socially responsible way. The increasing trend of fair trade is an example of the impact
of ethical marketing.
Typical Ethical issues related to the Marketing Mix:
Product Issue: Covering up defects in products that could cause harm to a
consumer; withholding critical performance information that could affect a
purchase decision.
Distribution Issue: Counterfeit products are widespread, especially in the areas
of computer software, clothing, and audio and video products. The Internet has
facilitated the distribution of counterfeit products.
Promotion Issue: Deceptive advertising or withholding important product
information in a personal selling situation.
Pricing Issue: Indicating that an advertised sale price is a reduction below the
regular list price when in fact that is not the case.
Advantages
✓ Enhance Business Reputation
✓ Positive Work Environment
✓ Improves Customer Happiness
✓ Retain Good Employees
✓ Builds Investor Loyalty
✓ Avoid legal Problems

Disadvantages
✓ Reduce Profits
✓ Time Consuming
✓ Not Ideal for Small Business
✓ Instability

E-BUSINESS :
The use of Internet and Web technologies in business – commonly known as “E-business” –
has changed how marketers implement and enhance their business processes and interact with
their environments. In order to develop a successful e-business model understanding the
customer needs in the light of the new environment is very essential. Electronic business,
commonly referred to as “e-business”, or an internet business is generally referred as buying
and selling of goods or services through internet.
FEATURES :

1. Wider reach in terms of market access.

2. Operational round the clock and across the year.

3. E-business covers all the activities of business.

4. Use of information and communication technologies.

5. Attractive, interactive and collaborative.

ADVANTAGES :

1. Helps in presentation of products and services effectively.

2. Provides adequate information about products and services.

3. Eliminates location and availability restrictions.

4. Reduces time and money spent.

5. Expedites customer service.

6. Provides scope for online interaction.

7. Worldwide presence and 24/7 business hours.

8. Makes shopping convenient.

9. Easy to start and manage a business.

10. No need for a physical store.

11. Eliminates market intermediaries.

DISADVANTAGES :

1. Security concerns

2. Lack of personal touch

3. Lacks tangibility as product before purchase cannot be experienced.

4. Lack of clearly defined cyber laws.

5. Not suitable for all products & services e.g., perishable commodities.
6. Consumes a lot time for delivery of physical products.

7. Returning goods, replacement and exchanging is a problem.

M – BUSINESS :
M – Business is “ the application infrastructure required to maintain business relationships
and sell information, services and commodities by means of the mobile devices.

FEATURES :
1. Any-time and anywhere transaction capability.

2. Services through wireless handheld devices.

3. Wider reach.

4. Attractive, interactive and collaborative.

5. Provides adequate security.

Advantages of Mobile Business/Commerce:

1. Cover wild distance: Mobile is the only technology which is now become necessary for
any person in social and business life than computers. Hence, it is easy to reach users
through M - Commerce.

2. Consumer deals: As more users use M-Commerce, there are lots of companies use M-
Commerce site to reach them by giving different and better deals in comparison of their
competitor.

3. Savings: Companies try to reach to the consumer directly through M-Commerce, so users
have no need to go far to the store physically and at the end it saves user's time and
money.

Disadvantages of Mobile Business/Commerce:

• Use of limited graphics due to low bandwidth.

• Expensive to set up mobile infrastructure
• Compatibility constraints of mobile devices
• Security of data and transactions.
• User interface is not friendly.
RELATIONSHIP MARKETING
In the present competitive business environment one of the prime objectives of marketing is
to create an in-depth and accustomed relationship with not just customers but all the stake
holders of the business who directly or indirectly affect the success of the firm’s marketing
activities. Relationship marketing includes a set of activities and strategies aimed at
developing customer loyalty, interaction, managing trust and long-term engagement with all
the stake holders of the business. Stake holders of business include – customers, suppliers,
distributors, retailers, shareholders, government, employees and other marketing partners.

Relationship marketing is important because:

Customer Acquisition: Attracting and converting new customers through effective

marketing strategies.

Customer Retention: Building strong relationships to encourage customer loyalty and repeat
business

Customer Advocacy: Turning satisfied customers into brand ambassadors who recommend
products or services.

Benefits of Relationship Marketing:

• Long-term customers tend to be less inclined to switch, and also tend to be less price
sensitive.
• Long-term customers may initiate free word of mouth promotions and referrals.
• Long-term customers are more likely to purchase related products from you.
• Regular customers tend to be less expensive to service and tend to be consistent in their
purchase habits.
• Increased customer loyalty makes employees' jobs easier and more satisfying.

Disadvantages of relationship marketing

• Relatively low value products or services
• Consumer products
• Generic commodities
• Switching costs are low
• Clients prefer a single transaction to relationships
• No/low customers involvement in production
Event marketing:

Event marketing describes the process of developing a themed exhibit, display, or

presentation to promote a product, service, cause, or organization leveraging in-person
engagement. Events can occur online or offline, and can be participated in, hosted, or
sponsored.

Designing or developing a 'live' themed activity, occasion, display, or exhibit (such as a

sporting event, music festival, fair, or concert) to promote a product, cause, or organization.

Advantage of Event Marketing

• Minimizes clutter in advertising media.

• Helps companies respond to consumers' changing media habits. Sponsorships help
companies gain approval of its stakeholders.
• Enhance brand equity and image, increase consumer awareness.
• Better chances of tapping target market of specific segments, regions or lifestyles.

Dis-Advantage of Event Marketing

• Cost of big events

• Advertising clutter at events
• Ambush marketing
• Effectiveness hard to measure

Emotional marketing

Emotional marketing refers to marketing and advertising that primarily uses emotional
appeals to make your customers and prospective customers notice, remember, share, and buy
your company's products or services. Emotional marketing refers to marketing messages and
campaigns that primarily use emotion to make a business’s target market aware of the
business and influence the target market to buy, remember and share the business and its
offerings.

Top Strategies to Excel Emotional Marketing

1. Understand your Audience

Knowing your audience is important in emotional marketing so consider performing market

research on what could elicit an emotional reaction in your advertisements. Research if any
competitors have been successful in emotional marketing to see what consumers connect to.
Create marketing materials that connect to potential consumers' fears, desires, dreams, or
memories.

2. Make Use of Colour

Colours can create emotional responses in people. Leveraging different colours for distinct
purposes can affect how people feel toward certain products or companies. For example,
people might associate the colour green with health and environmental awareness, while red
can elicit emotions like excitement, joy, and passion. You can include colour with location,
people's clothes, or distinguished objects in advertisements.

3. Tell a Story

A narrative can be more memorable than a simple product description. Telling a story that
your customers can relate to may encourage them to seek out your content in other places.

For example, if a customer who engages in similar activities sees a video ad featuring a dog
and his owner fishing, they might seek the social media account of that company to access
similar content. Similarly, they may consider the product advertised because they might share
a similar story.

4. Inspire

You can foster inspiration with advertising that highlights a character's accomplishments
while convincing the consumer they could achieve the same. This is common with famous
athletes in major brand commercials.

These campaigns might show what adversities the athletes overcame before their success.
Similarly, companies might commit to a good cause like environmental cleanup or fighting
for social justice to inspire their consumers to both consider their brand and get involved
themselves.

5. Create Aspirations

Similar to inspiration, companies may consider how showcasing that people can achieve
significant goals may help consumers aspire to set higher goals themselves.

The brand might suggest that if a customer uses their product, they might achieve a specific
result. Rather than false advertising, emotional marketing may simply give the appearance of
this connection. For example, a living room furniture commercial may show a family
relaxing, happy, and gathered on a couch watching movies and laughing. This can imply their
furniture may inspire happiness in the home.

6. Location

Location-based marketing can target emotional responses from the residents where
companies do business. A company would sponsor local events, provide services to local
people or businesses, or simply feature locations in their advertising. Each of these actions
can make people feel connected to a brand if they already have emotional connections to the
location.

7. Leverage Milestones

Milestones in marketing can make people feel nostalgic or that they relate to certain
companies. This can target holidays, events like anniversaries, or certain times of the year.

For example, a camera company might advertise a family using their equipment to
photograph their new baby and flash forward to taking pictures at graduation. This can make
people feel emotional about their own family experiences and milestones, creating a
memorable connection.

8. Connect

Love is an experience that consumers might seek in their daily lives. By replicating this, a
company can appear more human. For example, an advertisement may express a brand's
commitment to customers or its passion when designing a product, showing behaviours
similar to those performed by individuals that feel love for each other.

9. Involve Your Customers

Make your advertisement personal and make your customer feel involved. Coca-Cola
mastered this tactic with its Share a Coke campaign. They replaced their logo with the most
common names. This way, people could share a coke with a person that matters most to them.
They had over a thousand names on their bottles,

Buzz Marketing

It is the practice of creating a talk around a product, service, company or brand. For example:
You might recruit volunteers preferably proactive consumers who are center of influence
among their peer to try products and then send them out of talk about their experience. It
reaches more people, faster than advertising, direct mail or even the Internet. The best buzz-
generating products and services, of course, are those, consumers feel good talking about.

What do People 'talk' or 'buzz' about?

• Exciting Products (like movies, destinations that offer exciting experiences.)

• Innovative Products (lie Web Browsers)
• Personal Experience Products (hotels, airlines)
• Complex Products (in order to reduce risk people, talk about products they do not
understand like software, medical devices.
• Expensive products (a very expensive vacation package will make potential buyers ask
about what it offers and how good it is since it requires a big investment by the buyer.)
• Observable Products (people discuss things they see in others like cloths, cars)
• Personal Activities ( like attending a cultural or sporting event)

Green marketing

Green marketing also referred as eco-marketing or environmental marketing, it is the practice

of promoting a company's products to demonstrate their sustainability. Companies might
design sustainable packaging, create products that reduce the consumer's carbon footprint or
use eco-friendly procedures during the distribution process.

Green Products are:

• Products which are recyclable, reusable and biodegradable in nature.

• Products with natural ingredients.

• Products containing recycled contents, non toxic chemical.

• Products contents under approved chemical. Products that do not harm or pollute the
environment.

• Products that will not be tested on animals

Benefits of green marketing

• Appeals to a new market

 By using green marketing strategies, companies can attract different demographics. A
growing number of consumers are concerned with how large corporations are affecting
the environment.
• Increases profitability and brand loyalty
Companies that are the first in their sector to offer a green product or service benefit
enormously from green marketing. This strategy can help companies stand out from their
competitors, as environmentally conscious consumers purposefully seek out companies
with sustainable promises. Therefore, green marketing can help businesses effectively
rebrand their products to increase profitability and brand loyalty.
• Helps the environment
Not only does true green marketing allow companies to garner more profit and gain more
loyal consumers, it helps the planet. Companies that follow through on their promises can
help significantly slow climate change and conserve the environment.

Disadvantages of green marketing

• Some consumers criticize companies that use green marketing strategies simply for the
sake of appealing to trends.
• Another potential disadvantage of green marketing is the initial increase in costs, as it can
take many resources to develop and implement new advertising strategies. It also requires
organizations to invest in new technologies and raw materials that might be more
expensive.

Challenges of Green marketing

• Green products require renewable and recyclable material, which is costly

• Requires a technology, which requires huge investment in R & D

• Water treatment technology, which is too costly Majority of the people are not aware
of green products and their uses.

• Majority of the consumers are not willing to pay a premium for green products.

Viral marketing

Viral marketing is a style of promotion that relies on an audience to organically generate and
push the message of a product or service. On social media, marketing is considered “viral”
when it’s being shared rapidly by the public at large (with a compounding effect) rather than
just its target audience.

Goal of Viral Marketing:

➢ Increase Sales

➢ Customer acquisition

➢ Customer Satisfaction

➢ Customer Loyalty

➢ Increase Traffic of Website

➢ Increase Brand Awareness

➢ Realistic

➢ Set Time Frame

Advantage of Viral Marketing

➢ Inexpensive compared to other advertising methods.

➢ Immediate visitors.

➢ Causes exponential growth- reaches a large audience.

➢ Automate your marketing methods - set it up once and forget about it.

➢ High Credibility.

➢ Increase targeted traffic to your web site.

➢ High efficiency.

Disadvantage of Viral Marketing

➢ Spam threats - If made badly, viral marketing can guide to significant spam issues.

➢ Brand dilution - Not all products or services are viral. One needs to verify first if the
product or service falls into these criteria.

➢ Association with unknown groups - During this process, it may reach someone you
would rather not be associated with your campaign.
Tool used in Viral Marketing

➢ E-mail Campaign

➢ Social Networking Websites

➢ Online Broadcast

➢ Message Campaign

➢ Online Quizzes

➢ Video and audio clips

➢ Share option button in campaign

Virtual marketing

Virtual marketing is the promotion of products or services using digital technologies and
telecommunications. It is mainly on the internet but may also be through smartphones,
display advertising, and any other digital marketing medium. It extends beyond the internet to
include channels that do not require the use of internet-connected devices.

Benefits of virtual marketing:

• Increased Reach: With traditional marketing methods, it can be difficult to target

potential customers outside of your immediate area. With virtual marketing, however,
businesses can easily target individuals all over the world! All you need is a good website
and some creativity.
• Cost-effective: There are many reasons why virtual marketing is cost-effective. Perhaps
the most apparent reason is that it eliminates the need for physical materials, such as
printed brochures and flyers. It can also be more targeted, reaching only those consumers
who are most likely to be interested in your product or service. It means that you can
avoid wasting money on advertising that reaches a broad audience but fails to generate
any leads or sales.
• Personalized: One of the great things about virtual marketing is that it allows businesses
to get personal with their customers. Thanks to social media and other online marketing
platforms, businesses can interact with their customers one-to-one, making them feel
valued and appreciated.
• Interactive: Unlike the more traditional marketing forms, like television commercials or
print ads, virtual marketing is interactive. Businesses can get instant feedback from their
consumers and make any necessary changes in real time.

Digital marketing

Digital marketing, or online marketing, refers to marketing activities targeting consumers

using digital channels. It includes all online marketing tactics implemented through digital

channels to achieve business and marketing goals. One big advantage of online marketing

over traditional marketing is the ability to gather and analyze data in real-time. Digital

marketing teams can make data-driven decisions to achieve their business and marketing

goals.

Advantages of Online / Digital Marketing:

• Advertisement on the internet is cheaper than (Low cost) the print advertisement. It is a
two-way communication between sales person and the potential customer which takes
people to the company website. It has a much wider reach.
• It helps in spreading the business worldwide, with no geographical barriers, making it
accessible from one country to another via Internet.
• It is a 24X7 (365 days) open store where people are welcome to shop anytime from
anywhere. This further directs the potential customer towards the company website.
• Internet makes the product reach much easier; while researching or getting accurate
information on a product. It also adds value by adding a point of reference and a touch of
individualized customer service.
• It also helps in creating credibility and gain trust and confidence of the customers. Many
people use internet for the pre-purchase research so that they can find themselves a
particular product which meets up to their requirements.

Disadvantages of Online/ Digital Marketing:

• Easier to have outdated information on internet, update timing is a critical issue here.
• Many web visitors expect something for free.
• There is a lot of competition in the market and by the time visitor reaches the product
they have already gone through many links and got the required product. Unless they find
what, they are looking for quickly.
• There are many pros and cons of internet marketing. It’s important to consider each when
creating internet marketing strategy.