MARKETING MANAGEMENT

December 14 2025

Marketing Mix: 4Ps, 7Ps, 4Cs & Digital Strategies

LU Notes Admin BBA NOTES, MARKETING MANAGEMENT 4Cs of marketing, 4Ps of marketing, 7Ps of Services, BBA Notes, Digital Marketing Mix, Distribution Channels, Marketing Mix, MBA notes, Pricing Strategies, Product Mix, Promotion Mix 0

Introduction to Marketing Mix

Concept and Meaning

The Marketing Mix is the “toolkit” of a marketer. It is the set of tactical, controllable tools that a company mixes together to produce the desired response from its target market.

Think of marketing like cooking a dish. You have ingredients like salt, spices, vegetables, and heat.

If you put too much salt (Price is too high), people won’t eat it.
If you don’t serve it on a table (Place is wrong), people can’t eat it.
If you don’t tell anyone it’s ready (Promotion is missing), no one will come.

Definition:

“The Marketing Mix is the set of controllable variables that the firm can use to influence the buyer’s response.” — Philip Kotler

Evolution: From 4Ps to 7Ps

The 4Ps: Proposed by E. Jerome McCarthy in 1960. These are primarily for Physical Products (Soap, Cars, Phones).
The 7Ps: Expanded by Booms and Bitner in 1981. They added 3 extra Ps for Services (Hotels, Airlines, Banks) because services are different from physical goods.

Understanding the Marketplace and Consumers,QUOTE, MARKETING

The Traditional 4Ps (Product Marketing Mix)

These four pillars are the foundation of any business strategy.

1. Product (The Solution)

The product is not just the physical item; it is the total bundle of benefits offered to the customer to satisfy a need.

Levels of Product:
1. Core Benefit: What the customer is really buying (e.g., A car buyer is buying “Transportation”).
2. Actual Product: The physical device (Engine, Seats, Brand Name).
3. Augmented Product: Extra services (Warranty, Free Servicing, Financing).
Product Mix Decisions:
- Product Line: A group of related products (e.g., Dove Soap, Dove Shampoo).
- Product Width: Number of different product lines.
- Product Depth: Varieties of each product (e.g., Lux in Pink, White, Blue).
- Packaging: It acts as the “Silent Salesman” on the shelf.

2. Price (The Value)

Price is the exchange value of the product. It is the only P that brings in money; the others cost money. Setting the right price is critical because it directly determines profit.

Factors Affecting Price:
- Internal: Cost of production, marketing goals.
- External: Competitor prices, demand, government taxes (GST).
Key Pricing Strategies:
- Skimming: High initial price for luxury/innovative goods (e.g., iPhone launch).
- Penetration: Low initial price to capture market share (e.g., Jio launch).
- Psychological Pricing: Pricing at ₹99 instead of ₹100 to make it look cheaper.
- Dynamic Pricing: Changing prices based on demand (e.g., Uber surge, Airline tickets).

3. Place (Distribution)

Place does not just mean the shop location; it means Distribution Channels. It is the process of moving the product from the factory to the customer’s hands.

Distribution Channels:
- Zero Level (Direct): Manufacturer ——- Customer (e.g., Eureka Forbes, Dell Website).
- One Level: Manufacturer ——Retailer ——-Customer (e.g., Cars).
- Two Level: Manufacturer ——Wholesaler ——- Retailer ——Customer (e.g., FMCG goods like Soap, Biscuits).
Distribution Strategies:
- Intensive: Available everywhere (e.g., Coke, Chips).
- Selective: Available in select shops (e.g., TVs, Laptops).
- Exclusive: Available in only one shop per city (e.g., Rolls Royce, Rolex).

4. Promotion (Communication)

Promotion is how you tell the world about your product. It persuades customers to buy.

- The Promotion Mix:
  1. Advertising: Paid, non-personal communication (TV, Billboards, YouTube Ads). Best for mass reach.
  2. Personal Selling: Face-to-face interaction (Salesmen). Best for expensive/complex products.
  3. Sales Promotion: Short-term incentives to boost sales quickly (Coupons, “Buy 1 Get 1 Free”, Discounts).
  4. Public Relations (PR): Building a good image (Press releases, Sponsorships, CSR activities).
  5. Direct Marketing: Communicating directly with customers (Emails, SMS, Telemarketing).

Shutterstock

The Extended 7Ps (Service Marketing Mix)

Services are Intangible (cannot be touched), Inseparable (produced and consumed at the same time), and Variable (quality changes). Therefore, 4Ps are insufficient. We need 3 more:

5. People

Services are performed by people. The quality of the service depends entirely on the employee delivering it.

Significance: A rude waiter ruins the dinner, even if the food (Product) was tasty. A knowledgeable banker builds trust.
Strategy: Training, uniforms, soft skills, and attitude management.

6. Process

The procedure, mechanism, and flow of activities by which the service is delivered.

Significance: If a pizza delivery takes 2 hours instead of 30 minutes, the process has failed. If a bank account opening takes 10 forms, the process is bad.
Strategy: Standardization (McDonald’s assembly line) vs. Customization (Hair salon styling). Efficient processes reduce waiting time.

7. Physical Evidence

Since customers cannot “see” the service before buying, they look for tangible clues to judge quality.

Significance: You judge a hospital by its cleanliness. You judge a lawyer by their office decor. You judge an airline by the staff’s uniform and the plane’s seats.
Examples: Ambience, furniture, brochures, tickets, websites, signage.

The Modern View: The 4Cs

In modern marketing, the focus has shifted from the Seller’s view (4Ps) to the Buyer’s view (4Cs).

The 4Ps (Seller’s View)	The 4Cs (Customer’s View)	Explanation
Product	Customer Solution	Don’t just sell a product; solve a customer’s problem.
Price	Customer Cost	It’s not just the price tag; it’s the total cost of ownership (time, effort, maintenance).
Place	Convenience	Don’t just focus on shops; make it convenient to buy (Apps, Home Delivery).
Promotion	Communication	Don’t just “promote” (one-way); “communicate” and engage (two-way dialogue).

Marketing Mix in the Digital Era

The internet has revolutionized the Marketing Mix. It is now dynamic and interactive.

Product —–Co-Creation: Customers now help design products (e.g., Lays asking users to suggest flavors). Products like Software (SaaS) are updated instantly.
Price —–Real-Time Pricing: Prices are no longer fixed labels. They change based on user behavior and demand (e.g., Amazon prices fluctuate daily).
Place —-Omnichannel: The “store” is everywhere—in your pocket (Mobile Apps), on your laptop, and on social media (Instagram Shops).
Promotion——Engagement: Marketing is no longer shouting at customers via TV. It is about Content Marketing, Influencers, and Viral Trends where customers talk back.

UNDERSATANDING MARKETING BETTER, WHAT SEKKS AND WHAT NOT SELLS IN THE MARKET

Why is the Marketing Mix Important?

Creates Synergy: It ensures all elements work together. (e.g., You cannot sell a high-quality luxury watch (Product) in a cheap plastic bag (Packaging) at a roadside stall (Place)).
Differentiation: It helps a company stand out. (e.g., Domino’s differentiated itself not on Product taste, but on Process speed – “30 Mins or Free”).
Resource Allocation: It helps managers decide where to spend money—should we lower the Price or increase Promotion?
Adaptability: It allows firms to respond to changing environments. (e.g., During Covid, restaurants changed their Place strategy to “Home Delivery” to survive).

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December 14 2025

STP: Segmentation, Targeting & Positioning Strategies

LU Notes Admin BBA NOTES, MARKETING MANAGEMENT BBA Notes, demographic segmentation, MBA Notest, Niche Marketing, Perceptual Map, Positioning Strategy, psychographic segmentation, STP marketing, Target Market 0

Introduction to the STP Model

In the early days of business, companies practiced Mass Marketing—selling the same product to everyone (e.g., Henry Ford selling only black Model T cars). But today, customers are different. You cannot sell a Ferrari to a college student, and you cannot sell a skateboard to a senior citizen.

To succeed, modern marketers use the STP Model. It is a three-step process to identify your best customers and sell to them effectively.

Segmentation: “Divide the market.” (Slice the cake).
Targeting: “Choose the best group.” (Pick the biggest/tastiest slice).
Positioning: “Create a unique image.” (Put a cherry on top so they want your slice).

Overall Bases of Segmentation:

1. Market Segmentation

Concept and Meaning

Market Segmentation is the process of dividing a large, heterogeneous (mixed) market into smaller, homogeneous (similar) groups of customers who have similar needs, characteristics, or behaviors.

Why Segment?

Resource Optimization: Companies have limited money. Segmentation helps spend it on people most likely to buy.
Better Product Design: You can design a phone specifically for gamers (Asus ROG) or specifically for business (Blackberry), rather than making a mediocre phone for everyone.
Competitive Advantage: Avoiding head-on competition by finding a unique spot (Niche) in the market.

Bases for Segmentation (How to Divide the Market)

Marketers generally use four major variables to segment consumer markets. Most successful companies use a combination of these.

A. Geographic Segmentation

Dividing the market based on physical location. People in different places have different needs.

Region: North India prefers wheat (Roti), while South India prefers rice (Idli/Dosa). McDonald’s changes its menu accordingly.
Climate: Selling air conditioners in Mumbai (hot/humid) vs. heaters in Shimla (cold).
Density: Urban (Cities), Suburban (Towns), Rural (Villages). Rural marketing requires smaller packs (sachets) and lower prices.

B. Demographic Segmentation

This is the most popular method because demographic data is easy to measure and highly relevant.

Age:
- Kids: Cartoon Network, Kinder Joy.
- Youth: Smartphones, Fast Fashion (Zara, H&M).
- Elderly: Retirement plans, health supplements.
Gender: Cosmetics for women, Razors for men (though gender-neutral products are rising).
Income:
- High Income: Luxury cars (Audi, BMW), 5-star hotels.
- Middle Income: Value-for-money cars (Maruti Swift), Budget hotels.
Family Life Cycle: Newlyweds need furniture; parents with babies need diapers; empty nesters (retired parents) need travel packages.

C. Psychographic Segmentation

This divides buyers based on psychology—their social class, lifestyle, or personality. It answers “What are they like?”

Lifestyle:
- Adventurous: GoPro cameras, Mountain bikes.
- Health Conscious: Green tea, Gym memberships, Fitbits.
Personality:
- Aggressive/Macho: Thums Up (“Taste the Thunder”), SUVs.
- Sophisticated/Classy: Dove, Raymond (“The Complete Man”).
Social Class: Upper class buys art and luxury; Working class buys utility items.

D. Behavioural Segmentation

Dividing buyers based on their knowledge, attitude, uses, or responses to a product. Many marketers believe this is the best starting point.

Occasions:
- Regular: Toothpaste, Bread.
- Special: Cadbury Celebrations for Raksha Bandhan; Hallmark cards for Valentine’s Day.
Benefits Sought: Why do you buy the product?
- Shampoo: Some buy for “Dandruff control” (Head & Shoulders), some for “Beauty/Shine” (L’Oreal), some for “Herbal” (Patanjali).
Usage Rate:
- Light Users: Buy once a year.
- Heavy Users: Buy every week. (Marketers focus on keeping heavy users happy).
Loyalty Status:
- Hard-core Loyals: Buy only Apple products.
- Switchers: Buy whatever is on discount (Pepsi today, Coke tomorrow).

Criteria for Effective Segmentation

Not every segment is useful. For a segment to be viable, it must meet the MASDA criteria:

Measurable: Can you measure its size and purchasing power?
Accessible: Can you reach them via media (TV, Internet) and distribution (Stores)?
Substantial: Is the group large and profitable enough to support a business? (e.g., A car for people under 4 feet tall is a segment, but not substantial enough to build a factory).
Differentiable: Does the segment respond differently to marketing? (If married and unmarried women buy the same perfume for the same reason, they are not different segments).
Actionable: Do you have the resources to serve them?

2. Market Targeting

Once the market is sliced (Segmented), the company must evaluate the segments and decide which ones to serve. This decision is called Targeting.

Target Market: A set of buyers sharing common needs or characteristics that the company decides to serve.

Targeting Strategies

A. Undifferentiated Marketing (Mass Marketing)

The company ignores segment differences and targets the whole market with one offer.

Philosophy: “One size fits all.”
Focus: What is common in the needs of consumers, not what is different.
Examples: Salt, Sugar, Steel.
Pros: Low cost (economies of scale in production and advertising).
Cons: Very difficult to satisfy everyone; vulnerable to competitors who focus on specific groups.

B. Differentiated Marketing (Segmented Marketing)

The company targets several market segments and designs separate offers for each.

Philosophy: “Different strokes for different folks.”
Example: Maruti Suzuki.
- Alto: For first-time budget buyers.
- Swift: For young, sporty drivers.
- Ciaz: For corporate executives desiring status.
Pros: Higher total sales; strong position in each segment.
Cons: Increased costs (separate ads, production lines, and research for each product).

C. Concentrated Marketing (Niche Marketing)

The company goes after a large share of one or a few smaller segments (niches).

Philosophy: “Big fish in a small pond.”
Example: Rolex (Targets only the super-rich), Royal Enfield (Targets only cruiser bike lovers), Bansal Classes (Targets only IIT-JEE aspirants).
Pros: Strong market position due to expert knowledge; high profit margins.
Cons: High risk. If that one segment fails or a large competitor enters, the company can die.

D. Micromarketing

Tailoring products to the needs of specific individuals or local customer groups.

Local Marketing: Tailoring brands to local cities or stores (e.g., Groupon offers deals specific to your city).
Individual Marketing (Mass Customization): Customizing products for individual customers.
- Example: Dell lets you configure your own laptop. Tailors make suits to your exact measurement.

3. Positioning

Positioning is not what you do to the product; it is what you do to the mind of the consumer.

Definition: Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

The Goal: When a customer thinks of a category (e.g., Safety), they should immediately think of your brand (e.g., Volvo).

Perceptual Mapping (Positioning Map)

Marketers often use a graph called a Positioning Map to see where their brand stands versus competitors.

- X-Axis: Price (Low to High).
- Y-Axis: Quality (Low to High).
- Goal: To find an empty spot on the map (a gap in the market) where no competitor exists.

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Positioning Strategies

How can a brand position itself?

Attribute Positioning: Positioning based on a feature. (e.g., Redmi phones position on “Battery Life” or “Camera MP”).
Benefit Positioning: Positioning based on the result/benefit. (e.g., Colgate = No Cavities; Sensodyne = Sensitivity Relief).
Use/Application Positioning: Positioning based on when it is used. (e.g., Kellogg’s Cornflakes positioned specifically as a “Breakfast” meal).
User Positioning: Positioning for a specific type of person. (e.g., Johnson’s Baby Shampoo is for babies; Pepsi is for the “Young Generation”).
Competitor Positioning: Positioning directly against a rival. (e.g., 7-Up calling itself the “Un-Cola” to distinguish from Coke/Pepsi).
Quality/Price Positioning:
- More for More: High price, high quality (Mercedes).
- Less for Much Less: Low price, low quality (Ryanair/Budget Airlines).
- More for Less: The winning value proposition (Big Bazaar – “Isse Sasta Aur Accha Kahin Nahi”).

Differentiation: The Key to Positioning

To position effectively, you must be different. If you are the same as the competitor, the customer will just buy the cheaper one.

Product Differentiation: Features, performance, style, durability (e.g., Apple’s build quality).
Service Differentiation: Speed, delivery, installation, repair (e.g., Amazon’s fast delivery).
Channel Differentiation: Coverage, expertise (e.g., Eureka Forbes selling directly at home).
People Differentiation: Hiring and training better staff (e.g., Singapore Airlines flight attendants are famous for hospitality).
Image Differentiation: Symbols, atmosphere, logos (e.g., The Nike Swoosh represents victory and speed).

Repositioning

Sometimes, a brand’s original position becomes outdated or sales drop. The company must then change its image. This is called Repositioning.

Example: Dettol. Originally positioned only for cuts and wounds (First Aid). Repositioned as a daily hygiene soap, handwash, and floor cleaner to increase daily usage.
Example: Cadbury Dairy Milk. Originally for kids. Repositioned for adults with the “Kuch Meetha Ho Jaye” campaign (replacing traditional Indian sweets)

Advantages of segmentation

Advantages of Segmentation

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December 14 2025

Product Pricing: Concepts, Objectives & Strategies

LU Notes Admin BBA NOTES, MARKETING MANAGEMENT Cost Plus Pricing, Dynamic Pricing, Factors Affecting Price, Price Determination, Pricing Objectives, Pricing Strategies, Product Pricing, Skimming vs Penetration, Value Based Pricing 0

Introduction to Product Pricing

Concept and Meaning

Price is the value of a product or service expressed in monetary terms. It is the amount of money a customer must pay to acquire a product.

However, price is more than just a number on a tag. It is a measure of the value or utility a customer expects to derive.

Equation: Value = Benefit / Price
If the benefit is high and the price is low, value is high. If the price is high and benefit is low, value is low.

Nature and Scope of Pricing Decisions

Pricing is a critical element of the Marketing Mix (4Ps) for several reasons:

The Only Revenue Generator: Product, Place, and Promotion are all costs to the company. Price is the only element that brings money in.
Highly Flexible: Unlike product features or distribution channels which take months to change, price can be changed in minutes to react to market conditions.
Psychological Indicator: Price creates the first impression of quality. High price often signals luxury; low price often signals inferiority or a bargain.
Profit Determinant: A small increase in price (if volume stays stable) can lead to a massive increase in net profit.

Objectives of Pricing

Before setting a price, a firm must decide what it wants to achieve. The pricing goal determines the strategy.

1. Survival (Short-Term Goal)

If a company is facing intense competition, changing consumer tastes, or overcapacity, its main goal becomes survival. It sets low prices just to cover variable costs and stay in business.

2. Current Profit Maximization

Many companies estimate the demand and costs at different prices and choose the price that produces the maximum current profit, cash flow, or return on investment (ROI).

3. Market Share Leadership

Some companies believe that higher sales volume will lead to lower unit costs and higher long-term profit. They set the lowest possible prices to grab the largest slice of the market.

Example: Reliance Jio entering the telecom market with free/low-cost plans.

4. Product Quality Leadership

A company might aim to provide the best quality product in the market. This requires charging a high price to cover high R&D and production costs.

Example: Mercedes-Benz or Apple.

5. Status Quo Pricing

This objective is common in oligopolies (markets with few sellers). The goal is to stabilize prices and avoid price wars by following the market leader’s price.

Pricing Objectives and Typical Company Actions

Factors Affecting Pricing Decisions

Pricing is never done in a vacuum. It is influenced by two sets of factors:

A. Internal Factors (Controllable)

These factors are within the control of the organization.

Cost of Product: This sets the floor (minimum) price. The company must charge a price that covers fixed costs (rent, salaries) and variable costs (raw materials) plus a fair profit.
Marketing Objectives: As discussed above (Survival vs. Quality Leadership).
Product Differentiation: If your product is unique (differentiated), you can charge a premium. If it’s a commodity (like salt), you must match competitors.
Product Life Cycle: Pricing changes over time.
- Introduction: High price (Skimming) or Low price (Penetration).
- Decline: Price cuts to clear stock.

B. External Factors (Uncontrollable)

These factors are outside the firm’s control.

Demand: This sets the ceiling (maximum) price. You cannot charge more than what customers are willing to pay.
- Elastic Demand: Small price change = Big demand change (Price sensitive).
- Inelastic Demand: Price change doesn’t affect demand much (e.g., Petrol, Salt).
Competition: The prices and strategies of competitors (e.g., Pepsi vs. Coke) heavily dictate your price range.
Economic Conditions: Inflation, recession, and interest rates affect consumer purchasing power. In a recession, companies must lower prices.
Government Regulations: Taxes (GST), price controls on essential commodities (medicines, food), and anti-monopoly laws.

Number of Buyers/Sellers and their influence on Market

Pricing Strategies

Strategies are broad guidelines for setting price. The choice depends on whether the product is New or Existing.

1. New Product Pricing Strategies

When launching a brand new product, companies usually choose one of two paths:

A. Market Skimming Pricing

Setting a high price initially to “skim” revenues layer by layer from the market.

Logic: Sell to the “Cream” (rich/early adopters) first, then slowly lower the price to reach others.
Conditions: Product must have high quality/image; competitors shouldn’t be able to enter easily.
Example: Sony PlayStation or iPhone launches at a high price, which drops after a year.

B. Market Penetration Pricing

Setting a low price initially to penetrate the market quickly and deeply.

Logic: Attract a huge number of buyers quickly to win a large market share and discourage competitors.
Conditions: Market must be price-sensitive; production costs must fall as volume increases.
Example: Netflix or Amazon Prime entering new countries with low subscription fees.

2. Product Mix Pricing Strategies

Product Line Pricing: Setting price steps between products in a line (e.g., Samsung M10 vs M20 vs M30).
Captive Product Pricing: Pricing the main product low but the necessary accessories high.
- Example: Printers are cheap, but Ink Cartridges are expensive.
- Example: Razors are cheap, but Blades are expensive.
Bundle Pricing: Selling a set of products together at a lower price than buying them individually (e.g., McDonald’s Meal vs. Burger + Fries + Coke separately).

3. Psychological Pricing Strategies

Odd-Even Pricing: Pricing at ₹99, ₹499, or ₹999. Consumers process ₹999 as “900 something” rather than “1000”. It feels significantly cheaper.
Prestige Pricing: Artificially keeping the price high to signal exclusivity and status (e.g., Designer bags).

Pricing Methods (How to Calculate?)

How do managers arrive at the exact number?

1. Cost-Oriented Methods

Cost-Plus Pricing (Markup Pricing): Simply adding a standard markup to the cost.
- Formula: Price = Unit Cost + Desired Profit Margin.
- Pros: Simple to calculate.
- Cons: Ignores demand and competition.
Break-Even Analysis: Setting price to break even on the costs of making and marketing a product. Any sale above this price is profit.

2. Competition-Oriented Methods

Going-Rate Pricing: Setting price based largely on competitors’ prices rather than on company costs or demand. (Common in steel, paper, fertilizer industries).
Sealed-Bid Pricing: Used in B2B or government tenders. The firm sets a price based on what they think competitors will bid, hoping to win the contract.

3. Value-Based Pricing

Setting price based on the buyers’ perceptions of value rather than on the seller’s cost.

The marketer assesses customer needs and value perceptions first, and then sets a price that matches that value.
Example: A painting by a famous artist costs ₹500 in materials but sells for ₹5 Crores because of perceived value.

Price Adjustment Strategies

Companies adjust their basic prices to account for various customer differences and changing situations.

Discount and Allowance Pricing: Cash discounts for paying early, volume discounts for buying in bulk, or seasonal discounts.
Dynamic Pricing: Adjusting prices continually to meet the characteristics and needs of individual customers and situations.
- Example: Uber surge pricing or Airline ticket prices changing every hour based on demand.
Geographical Pricing: Adjusting prices based on location (e.g., charging more in remote areas to cover shipping costs).

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December 14 2025

Product Policy, NPD Process & PLC Stages

LU Notes Admin BBA NOTES, MARKETING MANAGEMENT BBA Notes, MBA notes, New Product Development Process, Product Levels, Product Life Cycle Stages, Product Line, Product Mix, Product Policy 0

What is a Product? (Concept & Levels)

A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It is a bundle of utilities consisting of various features and services.

Philip Kotler defines 5 Levels of a Product:

Core Benefit: The fundamental service or benefit the customer is really buying. (e.g., A hotel guest is buying “rest and sleep”).
Basic Product: Turning the core benefit into a basic product. (e.g., A hotel room includes a bed, bathroom, and towels).
Expected Product: Attributes buyers normally expect. (e.g., Clean sheets, working lights).
Augmented Product: Additional features that exceed customer expectations. (e.g., Free Wi-Fi, fresh flowers, rapid check-in).
Potential Product: All possible augmentations and transformations the product might undergo in the future. (e.g., A suite where you can control the ambiance with your voice).

Product Policy: Nature & Scope

Product Policy involves the strategic decisions regarding the company’s product offering. It defines the type, volume, and timing of products a company offers for sale.

Scope of Product Policy Decisions:

Individual Product Decisions: Decisions about attributes (Quality, Features, Style), Branding, Packaging, and Labeling.
Product Line Decisions: A group of products that are closely related (e.g., Colgate Toothpaste, Colgate Gel, Colgate Herbal). Decisions involve line stretching (adding higher/lower-end products) or line filling.
Product Mix Decisions: The total assortment of products a company sells.
- Width: Number of different product lines (e.g., Soap, Detergent, Cosmetics).
- Length: Total number of items in the mix.
- Depth: Variants of each product (e.g., Lux in Pink, White, Blue).
- Consistency: How closely related the lines are.

Types of Product (Global Marketing Context)

Products can be classified based on their potential for marketing across different geographies. This classification helps managers decide whether to standardize or adapt their products.

Local Products: These are seen as suitable only for a single market. They are specific to a culture or region and may not have demand elsewhere.
International Products: These are products seen as having extension potential into other markets. They start locally but can be sold in other countries with minimal changes.
Multinational Products: These are products adapted to the perceived unique characteristics of specific national markets. The product changes to fit the local needs of each country.
Global Products: These are products designed to meet global segments. They are standardized and sold the same way worldwide (e.g., Sony Electronics).

Types of Product

Note on Quality: Maintaining quality is a catchword in international marketing. Products must often meet standards like ISO 9000 as a prerequisite for export.

Features of a Product

A product is defined by several essential characteristics. These features help differentiate one product from another.

Tangible Attributes: The most obvious feature. It means the product can be touched, seen, and felt.
- Example: Cycle, Book, Pencil, Table.
Intangible Attributes: The product may be in the form of a service which cannot be touched but is experienced.
- Example: Banking, Insurance, Repairing services.
Exchange Value: Every product must be capable of being exchanged between a buyer and a seller for a mutually agreed consideration (Price).
Utility Benefits: A product is essentially a “bundle of potential utility.” It must provide a benefit or solve a problem.
Differential Features: A product should be distinguishable from others. Packaging, branding, and design create this Product Differentiation.
Consumer Satisfaction: The product must have the ability to deliver value and satisfaction to the consumers it is intended for.
Business Need Satisfaction: From the company’s view, the product must satisfy a business need (like generating revenue or utilizing resources).

Importance of Product

Product decisions are the most crucial because the product is the engine that pulls the rest of the marketing program.

Centre of All Marketing Activities: The product is the pivot. All other activities—advertising, distribution, buying, selling—cluster around it. Without a product, there is no marketing.
Starting Point of Marketing Planning: Products are the building blocks of a marketing plan. Decisions on Price, Place, and Promotion can only be made after the product is defined.
Key to Market Success:
- Quote: “If the first commandment in marketing is: know the customer, the second is know the product.”
- If the product is faulty, it will ultimately fail, no matter how good the marketing is.
Centre of Consumption and Satisfaction: From a consumer’s viewpoint, the product is the source of satisfaction. If the product fails to fulfill this, government agencies may intervene to safeguard consumer interests.
Importance from Social Viewpoint: Products satisfy societal needs and provide employment and a standard of living to millions of people.
Corporate Need Satisfaction: The basic corporate need for profits is satisfied by products. It is the vehicle through which a company generates sales volume and revenue for survival.
A Competitive Weapon: The product has great potential as a tool to fight competition. Companies gain advantages by changing packaging, color, size, quality, or innovation.

Levels of Product

A product is not just one thing; it consists of five different levels that add value. Marketing planners need to think about the product at these five levels.

1. Basic Product Level (Core Benefit)

This explains the fundamental reason why a customer buys. It addresses the core problem-solving benefit.

Example: For a car, the core benefit is transportation. For a mobile, it is communication.

2. Generic Product Level

This is the actual product with its basic qualities. It includes the generic ingredients required to deliver the core benefit.

Attributes: Quality level, Features, Design, Brand name, Packaging.
Example: A car must have wheels, an engine, and seats.

3. Expected Product

This refers to the set of attributes and conditions that buyers normally expect when they purchase this product.

Example: A hotel guest expects a clean bed, working lights, and fresh towels.

4. Augmented Product

This is where the competition happens. It refers to additional factors that set the product apart from competitors. It creates a “bundle of benefits” that exceeds customer expectations.

Includes: Home delivery, Installation, After-sales service, Customer education, Warranties.

5. Potential Product

This refers to the future. It encompasses all the possible augmentations and transformations the product might undergo in the future.

Example: Levels of Product for Coca-Cola

To understand these levels, let’s look at a bottle of Coca-Cola:

Core Benefit: To quench thirst.
Generic Product: A burnt vanilla-smelling, black, carbonated, sweetened fizzy drink.
Expected Product: The customer expects the drink to be cold and carbonated. If it is warm or flat, expectations are not met.
Augmented Product: Brand image, global availability, sponsorship of events, emotional connection (“Open Happiness”).
Potential Product: New flavors (Zero Sugar, Diet), new sustainable packaging, or personalized dispensing machines.

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December 14 2025

Motivation & Perception in Consumer Behavior

LU Notes Admin BBA NOTES, MARKETING MANAGEMENT BBA Notes, Consumer Motivation, Consumer Perception, Freud's Theory, Maslow's Hierarchy of Needs, MBA notes, Motivational Research, Needs Wants Demands, Projective Techniques 2

Introduction to Psychological Factors

Why do you buy a specific brand of toothpaste? Why do you prefer an iPhone over Android? The answer lies in Psychological Factors.

Two of the most powerful psychological drivers are Motivation (The Why) and Perception (The How we see it).

1. Motivation: The Driving Force

Definition:

Motivation is the internal driving force that impels an individual to action. It is the energy that pushes a consumer to satisfy an unfulfilled need.

Need: A state of felt deprivation.
Drive: The tension caused by the need.
Goal-Object: The product that satisfies the need.

Example: You feel hungry (Need) $\rightarrow$ You feel restless (Drive) $\rightarrow$ You buy a Burger (Goal-Object).

Needs, Wants, and Demands

Before understanding motivation theories, we must distinguish between these three core marketing concepts:

Need: The basic human requirements for survival and well-being. These exist naturally (e.g., Food, Water, Clothing, Safety).
Want: When a need is directed towards a specific object shaped by culture and personality.
- Example: An American needs food but wants a Hamburger. An Indian needs food but wants Rice and Dal.
Demand: Wants backed by the ability to pay (Purchasing Power).
- Example: Many people want a Mercedes, but only those who have the money create the demand.

Maslow’s Hierarchy of Needs Theory

Proposed by Abraham Maslow (1943), this is the most famous theory of motivation. It suggests that human needs are arranged in a pyramid (hierarchy). A person tries to satisfy the lower-level needs first before moving to higher-level needs.

The 5 Stages:

Physiological Needs (Basic Survival):
- Food, water, sleep, shelter.
- Marketing Application: Maggi (Hunger), Bisleri (Thirst), Real Estate (Shelter).
Safety Needs (Security):
- Protection from physical and emotional harm, job security, financial stability.
- Marketing Application: LIC (Life Insurance), Voltas Locks, Helmets, Fixed Deposits.
Social Needs (Belongingness/Love):
- Affection, friendship, acceptance, sense of belonging.
- Marketing Application: Facebook (Connecting people), Cadbury Silk (Love), Greeting Cards.
Esteem Needs (Ego/Status):
- Self-respect, status, recognition, prestige.
- Marketing Application: Luxury cars (BMW), Premium Credit Cards, Raymond Suits (“The Complete Man”).
Self-Actualization Needs (Full Potential):
- Becoming the best version of oneself, creativity, personal growth.
- Marketing Application: Nike (“Just Do It”), Education Services, Hobby Classes.

Note: Maslow later expanded this to 8 stages (adding Cognitive, Aesthetic, and Transcendence needs), but for BBA exams, the 5-stage model is primary.

2. Perception: Creating Reality

Definition:

Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.

“Perception is Reality.”
If a consumer perceives a product as high quality (even if it isn’t), they will treat it as high quality.

The Role of Perception in Marketing

Two people can see the same advertisement but interpret it differently.

Selective Attention: Consumers notice only a few ads out of the thousands they see daily. Marketers must use bold colors and catchy slogans to grab attention.
Selective Distortion: Consumers twist information to fit their existing beliefs. If you love Apple, you might ignore news about iPhone bugs.
Selective Retention: Consumers remember only the good points of brands they like and forget the good points of competitors.

Practical Example:

Tata Sky: Positioned itself as “Isko Laga Dala To Life Jingalala.” The perception created is that it solves all entertainment boredom.
Pricing: A price of ₹999 is perceived as “significantly cheaper” than ₹1000 due to psychological pricing perception.

3. Motivational Research

Consumers often don’t know why they buy what they buy, or they won’t admit it. Motivational Research helps uncover these hidden, subconscious reasons.

Definition:

Motivational Research is a type of qualitative research designed to uncover the consumer’s subconscious or hidden motivations. It is based largely on the psychoanalytic theories of Sigmund Freud.

Nature and Scope

Qualitative: It deals with “Why” (feelings/emotions), not “How many” (statistics).
Subconscious: It probes below the surface level of “I bought it because it’s cheap” to find the real reason (“I bought it to look cool”).
Small Sample Size: It involves in-depth study of a few people rather than surveying thousands.

Techniques of Motivational Research

In-Depth Interviews: A one-on-one long interview (1-2 hours) where a psychologist encourages the consumer to talk freely about their feelings regarding a product.
Focus Groups: A group of 6-10 people discussing a product under the guidance of a moderator. It reveals social motivations.
Projective Techniques: Used when consumers are shy to tell the truth. They are asked to project their feelings onto someone else.
- Word Association: “What is the first word that comes to mind when I say ‘Coffee’?”
- Sentence Completion: “People who buy sports cars are ________.”
- Thematic Apperception Test (TAT): Showing a picture and asking the consumer to tell a story about it.

Summary: Role in Consumer Behavior

Concept	Role in Marketing	Example
Motivation	Tells us WHY they buy. It identifies the unfulfilled need.	Selling a gym membership by triggering the motive of Social Appeal or Health.
Perception	Tells us HOW they see the product. It shapes the brand image.	Packaging chips in a matte packet to make them be perceived as Premium.
Motivational Research	Helps uncover HIDDEN reasons for buying.	Finding out that men buy convertibles not for wind-in-hair, but as a substitute for a mistress (Classic 1950s research finding!).

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December 14 2025

Consumer Behavior its Process, 4 Factors & Markets

LU Notes Admin BBA NOTES, MARKETING MANAGEMENT Buying Decision Process, Consumer Behaviour, Consumer process, Consumer Psychology, Factors Influencing Consumer Behaviour, Maslow's Hierarchy, MBA notes 0

Introduction to Consumer Behaviour

Concept and Meaning

Consumer Behaviour is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

It attempts to answer the “5 Ws and 1 H”:

What do they buy?
Why do they buy it?
When do they buy it?
Where do they buy it?
Who buys it?
How often do they buy it?

Consumer vs. Customer

Customer: The person who purchases the goods (The Buyer).
Consumer: The person who uses the goods (The End User).
- Example: A mother buying baby food is the Customer, but the baby is the Consumer. Marketers must target both.

Types of Customers in Consumer Markets

Understanding the different types of customers helps in designing specific marketing strategies.

1. Loyal Customers

These customers purchase the same brand or shop at the same store repeatedly.

Significance: They are the most valuable asset. They provide steady revenue and positive word-of-mouth.

2. Discount Customers

These customers shop frequently but make decisions based on the size of markdowns or sales.

Significance: They help clear inventory (cash flow) but can increase costs due to returns and low margins.

3. Impulse Customers

They do not have a specific product in mind when they enter a store. They make purchasing decisions at the spur of the moment.

Significance: Retailers target them with attractive displays and Point-of-Sale (POS) promotions.

4. Need-Based Customers

They have a specific intention to buy a specific type of product.

Significance: They are difficult to upsell. If they don’t find what they need, they leave immediately.

5. Wandering Customers

They have no specific need or desire in mind; they wander for the experience or social interaction.

Significance: They make up the largest traffic in malls but the smallest percentage of sales.

Buying Motives: Rational vs. Emotional

A Buying Motive is the internal force or urge that induces a person to buy a product.

1. Rational Buying Motives (Head/Logic)

These motives are based on logical reasoning and sound judgment. The customer analyzes the “Pros and Cons” before spending money.

Price/Economy: Buying a product because it is cheaper than alternatives.
Durability: Buying a product because it lasts a long time (e.g., Furniture).
Efficiency: Buying a car that gives high mileage.
Suitability/Utility: Buying a product because it fits a specific need perfectly.

2. Emotional Buying Motives (Heart/Feelings)

These motives are driven by emotions, sentiments, or instincts, often without logical analysis.

Pride & Prestige (Status): Buying a luxury car (Mercedes) or expensive watch (Rolex) to display wealth.
Fear: Buying life insurance, helmets, or burglar alarms out of fear of loss or injury.
Love & Affection: Buying gifts for family or toys for children.
Comfort: Buying an air conditioner or a soft mattress.
Imitation: Buying a smartphone because a celebrity endorses it.

The Consumer Buying Decision Process

The purchase is not a single event; it is a 5-Step Process.

Stage 1: Problem Recognition (Need Arousal)

The process begins when the buyer recognizes a difference between their actual state and their desired state.

Internal Stimuli: Hunger, thirst, sleep.
External Stimuli: Seeing an advertisement, smelling fresh bread, seeing a friend’s new car.

Stage 2: Information Search

Once the need is triggered, the consumer looks for information.

Personal Sources: Family, friends, neighbors (Most effective/trusted).
Commercial Sources: Advertising, salespeople, websites, packaging.
Public Sources: Mass media, consumer ratings, blogs.
Experiential Sources: Handling, examining, or testing the product.

Stage 3: Evaluation of Alternatives

The consumer processes the information to arrive at brand choices.

Evoked Set: The specific brands the consumer considers buying.
Evaluation Criteria: Analyzing attributes like Price, Features, Style, and Warranty.
Decision: “Brand A is cheaper, but Brand B has better quality.”

Stage 4: Purchase Decision

The consumer forms an intention to buy the preferred brand. However, two factors can still interfere:

Attitudes of Others: (e.g., A husband wants a sports car, but his wife insists on a family van).
Unanticipated Situational Factors: (e.g., The consumer loses their job, or the product is out of stock).

Stage 5: Post-Purchase Behaviour

The marketer’s job does not end at the sale. The consumer will experience either:

Satisfaction: Performance matches expectations.
Dissatisfaction: Performance falls below expectations.
Delight: Performance exceeds expectations.
Cognitive Dissonance: A feeling of post-purchase anxiety (“Did I make the wrong choice?”). Marketers reduce this through warranties and follow-up calls.

Factors Influencing Consumer Behavior

Consumer behavior is the result of the interplay of four major factors:

1. Cultural Factors (The Broadest Influence)

Culture: The set of basic values, perceptions, wants, and behaviors learned from family and society. (e.g., In India, cultural values often dictate spending on weddings).
Sub-Culture: Distinct groups within a culture based on nationality, religion, or geography (e.g., Punjabi cuisine vs. South Indian cuisine preferences).
Social Class: Relatively permanent divisions in society (Upper, Middle, Lower) determined by income, occupation, and education. Each class has distinct product preferences.

2. Social Factors

Reference Groups: Groups that have a direct or indirect influence on a person’s attitudes (e.g., Co-workers, College friends).
- Opinion Leaders: People who influence others (e.g., Tech YouTubers).
Family: The most important consumer buying organization. Marketers study the roles of husband, wife, and children.
Roles and Status: A person buys products that reflect their role in society. A Manager buys a suit; a mechanic buys overalls.

3. Personal Factors

Age and Life-Cycle Stage: Tastes in food, clothes, and recreation change with age (Bachelor → Newly Married → Full Nest with Kids → Empty Nest)
Occupation: A software engineer buys high-end gadgets; a factory worker buys durable work gear.
Economic Situation: Buying power depends on income, savings, and credit availability.
Lifestyle: A person’s pattern of living as expressed in their AIO (Activities, Interests, Opinions).

4. Psychological Factors

Motivation: A need becomes a motive when it is strong enough to drive action.
- Maslow’s Hierarchy of Needs: Physiological → Safety → Social → Esteem → Self-Actualization
Perception: The process by which we select, organize, and interpret information. Two people can see the same ad but perceive it differently.
Learning: Changes in behavior arising from experience. (e.g., “I bought Brand X and it broke; I will never buy it again”).
Beliefs and Attitudes: Descriptive thoughts and deep-seated feelings about a brand. (e.g., “Apple is expensive but reliable”).

Practical Examples for Exams

Cultural Factor: Selling beef products in India is difficult due to cultural/religious beliefs, whereas it is common in the USA.
Social Factor (Family): A car purchase in India is often a family decision, whereas in the West, it might be an individual decision.
Psychological Factor (Perception): Consumers perceive a product priced at ₹999 as significantly cheaper than ₹1000, even though the difference is only ₹1.

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December 4 2025

Human Resource Management Significance, Functions, Objectives of HRM, Evolution and Development of HRM

LU Notes Admin BBA NOTES, MARKETING MANAGEMENT BBA Notes, Evolution of HRM, HRM Functions, Human Resource Management, lucknow university, Management Principles, MBA notes, Objectives of HRM, Personnel Management vs HRM, Strategic HRM 0

Introduction to Human Resource Management (HRM)

Management is the art of getting things done through people. While managers deal with finance, operations, and information, the Human Resource (HR) is the only “living” resource.

Human Resource Management (HRM) is the process of acquiring, developing, maintaining, and retaining competent workforce to achieve the goals of an organization effectively and efficiently. It brings people and organizations together so that the goals of each are met.

According to Leon C. Megginson, HR is:

“The total knowledge, skill, creative abilities, talents and aptitudes of an organization’s workforce, as well as the values, attitudes and beliefs of the individuals involved.”

The most widely accepted definition in academic circles is by Edwin B. Flippo:

“Human Resource Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end that individual, organizational and social objectives are accomplished.”

Objectives of HRM

HRM is not just about hiring; it has a multi-dimensional purpose. The objectives can be classified into four primary categories:

Advisory Role: Advising management on HR policies to ensure a highly motivated and high-performing workforce.
Talent Management: Attracting, hiring, rewarding, maintaining, and developing the human resources of the organization.
Crisis Management: Handling difficult human relations situations to ensure organizational stability.
Communication Link: Acting as a bridge between the workforce and management.
Custodian of Values: Maintaining organizational standards and ethics regarding the treatment of employees.
Organizational Objectives: To recognize the role of HRM in bringing about organizational effectiveness. HRM is not an end in itself; it exists to assist the organization in achieving its primary goals.

Examples: Human resource planning, employee selection, training, and development to ensure the right people are in the right jobs.

Functions of HRM

HRM functions are broadly divided into Line and Staff roles.

Line Function: Directing the activities of people in their own department. The HR manager exerts line authority within the HR department.

Line managers are directly responsible for achieving organizational goals.
They have authority over employees.
HR activities performed by line managers include:
- Selecting employees
- Training workers on the job
- Appraising performance
- Motivating employees
- Maintaining discipline

Example:
A production manager hiring and supervising workers is performing a line function.

Staff (Service) Function:
- Staff managers advise and assist line managers.
- They do not have direct authority over workers.
- HR department mainly performs staff functions such as:
  - Framing HR policies
  - Designing recruitment and training programs
  - Advising on wage structure
  - Handling labor laws and compliance
  - Providing expert guidance
Example:
The HR manager advising department heads on recruitment or labor laws is performing a staff function.

Coordinative Function: Ensuring that line managers (like production or sales managers) are implementing HR policies (e.g., sexual harassment policies).

Evolution of HRM (India Focus)

The journey of HRM in India has evolved through several distinct phases, influenced by British rule, independence, and economic liberalization.

Phase 1: The “Commodity” Concept (Pre-1920s)

Labor was treated merely as a commodity to be bought and sold.
Focus: Exploitation, low wages, long hours. No concept of welfare.

Phase 2: The Beginning of Welfare (1920s – 1930s)

Trade unionism began to rise.
Royal Commission on Labour (1931): Recommended the appointment of “Labour Officers” to protect workers’ interests and handle grievances. This was the birth of the HR role in India.

Phase 3: The Legalistic Era (1940s – 1960s)

Post-independence, the government enacted strict labor laws.
Factories Act, 1948: Made “Welfare Officers” mandatory in factories with 500+ workers.
Role: The HR manager was a “Law Man” or “Welfare Officer,” focused on compliance and court cases.

Phase 4: The Personnel Management Era (1970s – 1980s)

The focus shifted from mere welfare to efficiency and administration.
The term “Personnel Management” became popular.
Role: The HR manager acted as a “Liaison Man” between management and unions.

Phase 5: The HRD Era (1980s – 1990s)

Companies realized people are assets.
Pioneers like L&T and SAIL introduced Human Resource Development (HRD) departments.
Focus: Training, development, and career planning.

Phase 6: Strategic HRM (Post-1991 Liberalization)

With the opening of the economy (LPG), competition increased.
HRM became a Strategic Partner.
Focus: Talent retention, performance-linked pay, and aligning HR with business strategy.

Phase 7: The Digital & Future Era (2000s – Present)

Use of HRIS (Human Resource Information Systems), AI in recruitment, and focus on “Employee Experience.”
Role: HR is now a “Change Agent” and business enabler.

Difference Between Personnel Management & HRM

The shift from Personnel Management (PM) to Human Resource Management (HRM) represents a change in philosophy.

Basis of Distinction	Personnel Management (Traditional)	Human Resource Management (Modern)
Perspective	Views employees as a “Tool” or “Cost”.	Views employees as an “Asset” or “Resource”.
Nature	Reactive: Solves problems after they happen.	Proactive: Prevents problems through planning.
Focus	Focused on rules, norms, and compliance.	Focused on strategy, culture, and development.
Scope	Narrow scope (hiring, paying, firing).	Broad scope (holistic growth, motivation, strategy).
Motivation	Uses “Carrot and Stick” (Rewards & Punishment).	Uses “Self-Motivation” and job satisfaction.
Relation	Often adversarial (Management vs. Unions).	Collaborative (Partnership and Trust).
Responsibility	Responsibility of the Personnel Department only.	Responsibility of All Managers (Line Managers too).

Policies, Principles & Strategy

Personnel Policies: These are guides to thinking and action. They provide a roadmap for managers (e.g., “We promote from within first”). Policies ensure uniformity, better control, and confidence among employees.

HR Principles: These are fundamental truths or laws (e.g., principle of fair remuneration). They are universally applicable and guide the formulation of policies.

Strategic HRM: This is the modern approach. It links HRM with strategic goals to improve business performance. It views employees as a source of competitive advantage.

Traditional HR: Reacts to problems.
Strategic HR: Proactively designs policies to help the company win.

How HRM Contributes to Success

HRM is the “life-giving element” of an organization. Without it, resources like money and machinery are useless.

Growth Instrument: It ensures competence and effective management, crucial for survival.
Liaison: It balances the needs of employees with the goals of the employer.
Professional Field: It moves focus from simple management to development, handling skill-building and capacity utilization to meet modern challenges.

Strategic Role of HRM

In modern organizations, HR is no longer just a support function that maintains files. It sits at the boardroom table.

Alignment with Business Strategy: HR ensures that the company has the right people to execute its business goals. (e.g., If the strategy is “Innovation,” HR hires creative talent and rewards risk-taking).
Change Agent: HR leads organizational change (e.g., Mergers, Digital Transformation) by managing employee resistance and culture.
Talent Management: In the “War for Talent,” HR strategically builds a brand to attract and retain the best brains in the industry.
Competitive Advantage: Technology can be copied, but People cannot. HR builds a unique workforce culture that competitors cannot replicate (e.g., Google’s culture).

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December 3 2025

Sales Promotion & Advertising : Meaning, Tools, Objectives Media, Creation & Agencies

LU Notes Admin BBA NOTES, MARKETING MANAGEMENT Ad Creation, Advertising, Advertising Agency, Advertising Media, BBA Notes, Comparative Advertising, Consumer Promotion Methods, Dealer Promotion Methods, lucknow university, Marketing Communication, marketing management, MBA notes, Objectives of Advertising, Promotion Mix, Sales Incentives, Sales Promotion, Tools of Sales Promotion 0

What is Sales Promotion? (Meaning & Definition)

Sales Promotion refers to short-term incentives designed to encourage the purchase or sale of a product or service. It includes all marketing activities—other than personal selling, advertising, and publicity—that stimulate consumer purchasing and dealer effectiveness.

While advertising offers a reason to buy, sales promotion offers an incentive to buy now.

Key Definitions:

Philip Kotler: “Sales Promotion encompasses all the tools in the marketing mix whose major role is persuasive communication.”
American Marketing Association: “Those marketing activities, other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and exhibitions, demonstrations and various non-recurrent selling efforts not in the ordinary routine.”

Objectives of Sales Promotion

Sales promotion is used to achieve five major objectives:

Building Product Awareness: It exposes customers to products for the first time (e.g., free samples) and helps capture customer information for future marketing.
Creating Interest: An appealing promotion can significantly increase customer traffic to retail outlets or websites. Allowing customers to experience a product for free creates interest.
Providing Information: Offering free trials or online services helps move the customer to action by providing necessary product information.
Stimulating Demand: Lowering the cost of ownership (e.g., discounts) stimulates sales by convincing customers to make a purchase.
Reinforcing the Brand: Rewards for “preferred” customers (like loyalty points) encourage additional purchases and strengthen the brand relationship.

What are Main Tools of Sales Promotion?

Sales promotion methods are broadly divided into two categories:

1. Consumer Promotion Methods

These are designed to encourage the final consumer to buy the product.

Free Samples: Distributing small amounts of the product for free to induce trial.
Discount Coupons: Certificates that give buyers a saving when they purchase a specific product.
Free Gifts: Offering a free item with the purchase of a product (e.g., “Buy a TV, get a pendrive free”).
Price Reduction: Selling products at a reduced price for a limited time (e.g., “50% Off”).
Contests & Competitions: Giving consumers a chance to win something (cash, trips) by luck or extra effort.
Demonstrations: Showing how a product works at retail stores or door-to-door to prove its value.
Money Back Guarantee: Promising to return the customer’s money if the product doesn’t meet standards, building trust.
After-Sale Service: Offering free maintenance or repairs for a certain period.

2. Dealer (Trade) Promotion Methods

These are designed to encourage dealers and distributors to stock and sell more of the manufacturer’s product.

Advertisement Allowance: Money or materials (posters, signboards) given to dealers to help them advertise the product.
Quantity Discount: Offering price breaks to dealers who buy in large quantities.
Incentives to Salesmen: Prizes or bonuses for dealer sales staff who meet specific targets.
Credit Policy: Allowing dealers to buy goods on credit for a certain period.
Meetings & Seminars: Organizing events to discuss problems and solutions with dealers.
Training: Teaching the dealer’s sales force how to sell the product effectively.

What are Importance of Sales Promotion?

For Manufacturers:

Creates demand for new products.
Increases sales volume, leading to large-scale production and lower costs.
Helps face competition successfully.

For Middlemen (Dealers):

Increases their sales and profits.
Increases their goodwill.
Supplements the work of their own salesmen.

For Consumers:

Provides knowledge of new products.
Offers goods at reduced prices.
Improves standard of living through trials of new items.

What is Advertising?

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. It is a powerful communication tool intended to inform, persuade, and remind the target audience.

Key Definitions:

American Marketing Association: “Any paid form of non-personal presentation and promotion of ideas, goods or services by business firms identified in the advertising message intended to lead to a sale immediately or eventually.”
William J. Stanton: “Advertising consists of all the activities involved in presenting to a group a non-personal oral or visual, openly sponsored message regarding a product, service or idea.”

What are Objectives of Advertising?

To Inform: Telling the market about a new product, explaining how it works, suggesting new uses, or informing about price changes.
To Persuade: Building brand preference, encouraging customers to switch to your brand, and persuading them to purchase now.
To Remind: Keeping the product in the customer’s mind during off-seasons and reminding them where to buy it.

Media of Advertising

The “medium” is the vehicle used to carry the message to the audience.

Press Advertising:
- Newspapers: Wide circulation, flexible, and timely. Can be local, state, or national.
- Magazines: Better quality reproduction, longer life, and targeted audiences.
Outdoor (Mural) Advertising: Posters, hoardings, and electric signs. Used to remind consumers of the product while they are out of their homes.
Direct Mail Advertising: Sending a personal message in writing through the post directly to selected persons.
Other Media:
- Radio & TV: Popular for mass appeal. TV combines audio and visual effects for high impact.
- Cinema: Slides or films played in theaters.
- Digital/Internet: Social media, websites, and apps (fastest growing medium).
- Fairs & Exhibitions: Displaying goods to a large number of visitors.

How to Create an Advertisement?

Creating a winning ad requires thinking like an “advertising guru.” Key factors include:

Title & Tagline: A unique product name and an eye-catching slogan (e.g., “Just Do It”) that grabs attention.
Remarkable Design: Layout, pictures, and special effects must be appealing.
USP (Unique Selling Point): Highlight the specific features that make your product a “killer competitor.”
Emotional Connection: Understand consumer psychology—sell “dreams,” comfort, and safety, not just a product.
Target Audience (KYC): Know who you are talking to. Use language and cultural references (Cross-Cultural Intelligence) that resonate with them.
Brand Ambassador: Using celebrities (like film stars or athletes) can increase appeal.

Comparative Advertisement

This involves comparing your product directly or indirectly with a competitor.

Pros: Helpful for customer decision-making, offers variety, and effective for new ventures challenging established brands.
Cons: Must be legal, accurate, and objective. Vague comparisons can damage your brand. “Sell your products, don’t just sell yourself.”

The Advertising Agency

An Advertising Agency is a service business dedicated to creating, planning, and handling advertising for its clients.

Key Tasks of an Agency:

Account Management: Liaising with the client to understand their goals and budget.
Creative Production: Designing the ad (layout, copy, special effects).
Media Planning: Deciding where to run the ad (TV, Print, Digital) to reach the target customer most effectively.
Research: Studying the market and customer to ensure the ad hits the mark.

Agencies can be Full-Service (doing everything), Creative Boutiques (focusing only on design), or Media Buying Agencies (focusing on purchasing ad space).

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December 3 2025

Marketing Research Methods, Process & Analysis

LU Notes Admin BBA NOTES, MARKETING MANAGEMENT BBA Notes, Causal Research, Data Collection, Descriptive Research, Exploratory Research, lucknow university, marketing management, Marketing Research, Marketing Research Process, MBA notes, Sampling Methods 0

What is Marketing Research?

Marketing Research is the formal process of generating information to help marketing managers make better decisions.

Unlike a Marketing Information System (MIS), which manages the flow of data, Marketing Research is conducted to address a specific problem or opportunity. It is used to identify consumer needs, define market segments, measure the effectiveness of promotions, and develop new products.

According to the American Marketing Association (AMA):

“Marketing Research is the function which links the consumer, customer, and public to the marketer through information.”

The 3 Rs of Marketing Research

David G. Bakken suggests that research helps in three key areas:

Recruiting new customers.
Retaining current customers.
Regaining lost customers.

🔄 The 6-Step Marketing Research Process

Conducting research is a systematic journey. While every project is different, most follow this 6-step framework.

Getty Images

Step 1: Define the Problem & Set Objectives

This is the most critical step. A problem well-defined is half solved.

Problem Definition: Uncovering the nature and boundaries of the situation (e.g., “Why has our market share in men’s jeans slipped by 10%?”).
Research Objectives: Defining exactly what information is needed to solve the problem (e.g., “Who are our customers?”, “How are we perceived compared to competitors?”).

Step 2: Design the Research Project

This involves specifying the methods for gathering and analyzing data. To ensure accuracy, the research must be Valid (measures what it’s supposed to measure) and Reliable (gives similar results if repeated).

There are three main categories of research design:

Exploratory Research: Used when the problem is vague. It aims to discover the general nature of the problem. (Sources: Secondary data, expert interviews).
Descriptive Research: Used when the problem is clearly defined. It describes market characteristics or functions (e.g., “How many people visit McDonald’s weekly?”).
Causal (Experimental) Research: Used to prove a cause-and-effect relationship (e.g., “Will changing the package color increase sales?”). It involves experiments in a lab or the field.

Step 3: Data Collection Approach

Researchers must decide where to get the data.

Secondary Data: Information that already exists (e.g., company records, published reports, internet). It is cheaper and faster but may be outdated.
Primary Data: New information collected specifically for the current project.

Methods for Collecting Primary Data:

Observation: Watching how people behave (e.g., in a store).
Survey: Asking people questions (most common method).
Experiment: Testing variables to see the effect.

Step 4: Sampling Plan

You cannot survey everyone. You must select a Sample (a limited number of units) to represent the whole Population (Universe).

Key Decisions:

Sampling Unit: Who is to be surveyed?
Sample Size: How many people? (Larger samples are more reliable but expensive).
Sampling Procedure: How do we choose them?

Types of Sampling:

Probability Sampling (Random): Every member has a known and equal chance of being selected. (e.g., Simple Random Sample, Stratified Sample). This is the most accurate.
Non-Probability Sampling: Based on the researcher’s judgment or convenience. (e.g., Convenience Sample, Quota Sample). It is easier and cheaper but less reliable.

Step 5: Analyze the Information

Raw data is useless on its own. The researcher must tabulate and analyze it to find meaningful insights.

Tools: Frequency counts, percentages, averages (mean/median/mode), standard deviation, and advanced statistical tools (regression analysis).
Goal: To interpret the data and accept or reject the hypothesis.

Step 6: Present the Findings

The final step is to present the results to the decision-makers in a formal report.

Executive Summary: A brief overview for senior managers who may not read the full report.
Clear Language: Avoid complex statistical jargon. Explain the findings simply so managers can use them to make decisions.

Qualitative vs. Quantitative Research

Feature	Qualitative Research	Quantitative Research
Main Techniques	Focus groups, In-depth interviews	Surveys, Scientific sampling
Questions Asked	“Why?”, “In what way?” (Open-ended)	“How much?”, “How many?” (Closed-ended)
Sample Size	Fewer interviews, longer duration	Many interviews, shorter duration
Goal	To gain insight, develop a hypothesis	To test a hypothesis, get numerical data
Nature of Findings	Explore language, refine concepts	Numerical data, projections

Summary: Why is Marketing Research Important?

It reduces uncertainty in decision-making.
It helps identify new market opportunities.
It allows companies to monitor their performance and customer satisfaction.
It provides the data needed for financial planning and economic forecasting.

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November 29 2025

What is Branding, Packaging & Trademarks? Marketing Management

LU Notes Admin BBA NOTES, MARKETING MANAGEMENT BBA Notes, Brand Equity, Brand Identity, Brand Image, Branding, Branding Strategies, lucknow university, marketing management, MBA notes, Packaging, Product Management, Trademarks 0

Branding, Trademarks, and Packaging

In the modern market, competition is rarely about the product itself; it is about the “augmented” product. As Prof. Theodore Levitt noted nearly 45 years ago, the new competition is about what companies add to their factory output in the form of packaging, services, advertising, and things people value.

A Brand is defined as a name, term, sign, symbol, or design (or a combination of them) intended to identify the goods and services of one seller and differentiate them from the competition.

However, a brand is much more than a tag. It is a contract with the consumer regarding performance. It builds a bond of faith and trust, eliminating search costs and risks for the buyer.

1. Brand Identity vs. Brand Image

It is crucial for students to distinguish between how a brand is seen internally versus externally.

A. Brand Identity (The Insider’s Concept)

Brand identity refers to the brand strategist’s vision. It is a unique set of brand associations that the company aspires to create or maintain. It represents what the brand stands for and implies a promise to customers.

Jean-Noel Kapferer identified six dimensions of Brand Identity (The Brand Identity Prism):

Physique: The tangible, physical aspects (features, logo, packaging). Example: IBM’s physique includes desktops and servers.
Personality: The brand character (using adjectives like “rugged,” “youthful,” or “sophisticated”). Example: Boost is energetic; Bajaj Pulsar is “Definitely Male.”
Culture: The values and principles the brand reflects. Example: Apple symbolizes simplicity and innovation; Mercedes symbolizes German engineering efficiency.
Relationship: The transaction and exchange between the brand and customer. Example: Nike’s “Just Do It” encourages the user to win; Apple conveys friendliness.
Reflection: The image of the target consumer that the brand projects. Example: Pepsi reflects young, carefree, fun-loving people.
Self-Image: How the customer perceives themselves when using the brand. Example: A Nike user sees their inner athlete.

B. Brand Image (The Outsider’s Concept)

Brand Image is the sum total of impressions created by the brand in the consumer’s mind. It encompasses physical characteristics, functional benefits, and symbolic meanings.

Types of Brand Associations:

Hard Associations: Perceptions of tangible attributes like speed, fuel economy, or sturdiness.
Soft Associations: Emotional perceptions. Example: Indian Airlines may be associated with dullness or inefficiency, while Bajaj Pulsar is associated with excitement.

The Three Elements of Brand Image (Alexander L. Biel):

Image of Provider: The reputation of the manufacturer. An inappropriate corporate image can hurt a good product. Example: Apple is seen as creative/cool; DCM is seen as old/dull.
Image of Product: The functional characteristics and technology. Example: Laundry detergents are driven by rationality, while perfumes are driven by emotion.
Image of User: Who uses the product? Example: The image of Raymond Suitings is “The Complete Man.”

2. Brand Equity (The Value of the Brand)

Brand Equity is the value a brand adds to a product. It explains why a product with a brand name can command a higher price and loyalty than an identical unbranded product.

Definitions:

David Aaker: “Brands have equity because they have high awareness, many loyal consumers, a high reputation for perceived quality, and proprietary assets.”
Kevin Lane Keller: “Brand equity is the marketing effects uniquely attributed to the brand. It is when certain outcomes result because of the brand name that would not occur otherwise.”

The 5 Dimensions of Customer-Based Brand Equity: (By Lasser, Mittal, and Sharma)

Performance: Is the product fault-free and durable?
Social Image: Does the brand hold esteem within the customer’s social group?
Value: The ratio between the cost and the perceived delivered value.
Trustworthiness: Does the customer have faith in the brand’s quality and the people behind it?
Identification: Does the customer feel emotionally attached to the brand? (Does it match their self-concept?)

3. Types of Brands

Marketers have several options when deciding the ownership of a brand.

Manufacturer Brands (National Brands):
- Initiated by producers.
- The initiator controls distribution, pricing, and promotion.
- Focus: Building brand loyalty and corporate image.
Private Brands (Store/House Brands):
- Initiated by resellers (wholesalers or retailers).
- The manufacturer is not identified on the product.
- Example: Shoppers’ Stop brands.
- Trend: Gaining popularity in India as large retail chains grow (e.g., Reliance Retail).
Licensed Brands:
- A company allows approved manufacturers to use its trademark for a royalty fee (2% – 10% of revenue).
- Example: P&G licensed the ‘Camay’ soap brand to Godrej in India for a period.
- Risk: The licensor loses control over manufacturing, which may hurt the brand reputation.
Generic Brands:
- Products that indicate only the product category (e.g., “Aluminium Foil” or “Paracetamol”).
- They are usually sold at lower prices than branded versions.

4. Branding Strategies (Detailed)

Companies grow by adding products. They must decide how to name them. Here are the six generic strategies:

1. Product Branding Strategy (One Product, One Brand)

The company assigns a unique name to every product. The brand reflects its own personality and does not take on company associations.

Philosophy: “Singularity.” Create the perception that there is no product quite like this one.
Example: P&G (Tide, Ariel, Pantene, Vicks, Old Spice) and HUL (Lux, Dove, Liril, Lifebuoy). Even though Ariel and Tide are both detergents by P&G, they have separate identities.
Advantage: You can cover different market segments without confusion. If one brand fails, it doesn’t hurt the company’s reputation.
Disadvantage: Extremely expensive to build a new brand from scratch ($5 million – $50 million).

2. Line Branding Strategy

Products share a common concept. The brand starts with one product and extends to complementary products that “surround” the core need.

Example: Lakmé (Core concept: Beauty). The brand extends to lipsticks, winter lotions, and face wash because they all complement the core concept of beauty. Park Avenue (Core concept: The upwardly mobile man).
Advantage: Stronger brand identity; promotion of the main brand helps all items in the line.

3. Range Branding Strategy (Brand Extension)

Different product categories share the same brand name because they fall under the company’s “Area of Expertise.”

Difference from Line Branding: In Line Branding, products complement each other (lipstick + makeup remover). In Range Branding, products might not complement each other, but they share a domain.
Example: Maggi (Noodles, Sauces, Soups, Dosa mixes). The area of expertise is “Fast Food.” Himalaya (Ayurvedic concepts).
Advantage: One brand banner covers many products, lowering promotional costs.
Risk: Overstretching may confuse consumers.

4. Umbrella Branding Strategy (Mega Branding)

The company name is the brand name for all products across diverse, unrelated categories. This is common in Eastern companies (Japan, Korea).

Example: Samsung, Sony, Tata, Amul, Philips, GE.
Advantage: Very economical. Transfers the goodwill of the company to new products instantly.
Disadvantage: Not market-focused. A failure in one category (e.g., a faulty toaster) can tarnish the image of another category (e.g., medical equipment).

5. Double Branding Strategy

Combining the company name AND a product brand name. Both are given equal status.

Example: Bajaj Pulsar, Maruti Suzuki Swift, Tata Indica.
Why? The product gains trust from the company name (Bajaj) and excitement/differentiation from the product name (Pulsar – “Definitely Male”).
Limitation: Works best when the product is consistent with the company’s expertise.

6. Endorsement Branding Strategy

A variation of double branding where the Product Brand dominates, and the Company Name takes a back seat, acting only as a seal of quality (endorsement).

Example: Kit-Kat (endorsed by Nestlé), Cinthol (endorsed by Godrej).
Advantage: The brand gets freedom to have its own distinct image (fun, youthful) while assuring the customer of the manufacturer’s quality.

5. Packaging and Trade Marks

Packaging

Packaging includes all activities focused on the development of a container and a graphic design for a product. It is often called the “Silent Salesman.”

Functions: It protects the product, identifies the brand, offers convenience to the user, and acts as a promotional tool on the shelf.

Trade Marks

A trademark is a brand, brand name, brand mark, or trade character that has been given legal protection. It protects the seller’s exclusive rights to use that brand name or mark, preventing competitors from copying it.

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