Professional Documents
Culture Documents
From:
With Love
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Preface
Cheers!
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Index:
4 STP: Intro 7
6 Branding: Intro 18
10 SWOT analysis 25
12 PESTEL Analysis 27
13 BCG Matrix 28
15 Digital Marketing 31
16 Go-To-Market Strategy 34
18 Viral Marketing 35
19 Word-of-Mouth Marketing 36
20 Consumer Behaviour 38
21 Distribution Strategy 38
22 Distribution Models 39
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1. What is ‘Marketing’?
2. What is ‘Selling’?
On the other hand, sales activities are focused on converting prospects to actual
paying customers. Sales involve directly interacting with the prospects to
persuade them to purchase the product.
Marketing thus tends to focus on the general population (or, in any case, a large
set of people) whereas sales tend to focus on individuals or a small group of
prospects.
The selling concept takes an inside-out perspective. It starts with the factory,
focuses on the company‘s existing products, and calls for heavy selling and
promoting to produce profitable sales.
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Marketing Selling
Emphasis on product planning and Emphasis on selling the product already
development produced
Profit through customer satisfaction Profit through sales volume maximization
Customer focused Product focused
Management is profit oriented Management is sales volume oriented
Depends on sales to close leads Depends on marketing to generate leads
Emphasis on consumer needs wants Emphasis is on the product
Need:
Human needs are the basic requirements and include food, clothing and shelter.
Without these humans cannot survive. An extended part of needs today has
become education and healthcare. Generally, the products which fall under the
needs category of products do not require a push. Instead the customer buys it
themselves. But in today‘s tough and competitive world, many brands have come
up with the same offering satisfying the needs of the customer that even the
needs category product has to be pushed in the customers’ mind.
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Types of Needs:
1. Stated needs:
The customer wants an inexpensive car.
2. Real needs:
The customer wants a car whose operating cost, not initial price is low.
3. Unstated needs:
The customer expects good service from the dealer.
4. Delight needs:
The customer would like the dealer to include an on board GPS
navigation system.
5. Secret needs:
The customer wants friends to see him or her as a savvy consumer
Want:
The form taken by a human need as shaped by culture and individual
personality.
Wants are a step ahead of needs and are largely dependent on the needs of
humans themselves. For example, you are thirsty and hence you need water to
quench that thirst. But you will drink only Bisleri bottled water - is a need.
Demand:
People want to choose products that provide the most value and satisfaction for
their money. When backed by buying power, wants become demands.
The basic difference between wants and demands is desire. A customer may
desire something but he may not be able to fulfill his desire.
Example of demands:
Cruises, BMW, 5 star hotels etc.
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5. Consumer vs. Customer
The terms "consumer" and "customer" are often used interchangeably, but a
consumer and customer are not always the same entity. In essence, consumers
use products while customers buy them. In general, your marketing efforts should
be geared toward the consumer, rather than the customer.
For example, the Refrigerator at your home would be bought by your parents and
you would have played a small in the decision making of the same; but the
washing machine might be operated by you hence your parents are the
‘customers’ and the whole family including you are the ‘consumers’.
What does this example mean? It means that if you buy a product for any
commercial purposes you are not a consumer. If you buy a product purely for
your own consumption, you are a consumer.
A typical FMCG firm will refer to the retailer or the dealer as the customer and the
end user as a consumer.
Not everyone likes the same cereal, restaurant, college, or movie. Therefore,
marketers start by dividing the market into segments. They identify and profile
distinct groups of buyers who might prefer or require varying product and service
mixes.
After identifying market segments, the marketer decides which present the
greatest opportunities—what are its target markets.
For each, the firm develops a market offering that it positions in the minds of the
target buyers as delivering some central benefit(s). Volvo develops its cars for
buyers to whom safety is a major concern; positioning its vehicles as the safest a
customer can buy.
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Segmentation:
The process of defining and subdividing a large homogenous market into clearly
identifiable segments having similar needs, wants, or demand characteristics. Its
objective is to design a marketing mix that precisely matches the expectations of
customers in the targeted segment. Few companies are big enough to supply the
needs of an entire market; most must breakdown the total demand into
segments and choose those that the company is best equipped to handle.
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Targeting:
After segmenting the market based on the different groups and classes, you will
need to choose your targets. No one strategy will suit all consumer groups, so
being able to develop specific strategies for your target markets is very
important.
Three general strategies for selecting your target markets:
1. Undifferentiated Targeting:
This approach views the market as one group with no individual segments,
therefore using a single marketing strategy. This strategy may be useful for a
business or product with little competition where you may not need to tailor
strategies for different preferences.
2. Concentrated Targeting:
This approach focuses on selecting a particular market niche on which marketing
efforts are targeted. Your firm is focusing on a single segment so you can
concentrate on understanding the needs and wants of that particular market
intimately. Small firms often benefit from this strategy as focusing on one
segment enables them to compete effectively against larger firms.
3. Multi-Segment Targeting:
This approach is used if you need to focus on two or more well defined market
segments and want to develop different strategies for them. Multi-segment
targeting offers many benefits but can be costly as it involves greater input from
management, increased market research and increased promotional strategies.
Example:
The Adventure Travel Company analyzes the profits, revenue and market
size of each of its segments. Segment A has profits of $8,220,000, Segment
B has profits of $4,360,000, and Segment C has profits of $3,430,000. So, it
decides to focus on Segment A, after confirming that the segment size is big
enough (it's estimated to be worth $220,000,000/year.)
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Positioning:
Example:
The Adventure Travel Company markets itself as the "best eco-vacation service
for young married couples" (Segment A).
It hosts a competition on Instagram® and Pinterest® to reach its desired
market, because these are the channels that these people favor. It asks
customers to send in interesting pictures of past eco-vacations, and the best one
wins an all-inclusive trip. The campaign goes viral and thousands of people send
in their photos, which helps build the Adventure Travel Company mailing list. The
company then creates a monthly e-newsletter full of eco-vacation destination
profiles.
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Elements of positioning:
1. Target Audience:
For whom the product is intended
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7. Marketing Mix (4/7 P’s of Marketing)
Once a marketing strategy is developed, there is a "Four P Formula" the business
activities should be continually evaluated and re-evaluated. These seven are:
product, price, promotion, and place. The extended version of this Four P formula
is called the Marketing 7 P Formula. As products, markets, customers and needs
change rapidly, these seven Ps must be continually revisited to make sure the
business is on track and achieving the maximum results possible in today's
marketplace.
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Product:
A product is any tangible object or an intangible service. Intangible products are
often service based like the tourism industry & the hotel industry or codes-based
products like cell-phone top ups, services like that of a carpenter, hair dresser
etc. Typical examples of tangible objects are cars, cell phones.
1. Core Product:
This is the basic product and the focus is on the purpose for which the product is
intended.
For example: A warm coat will protect you from the cold and the rain.
2. Basic product:
Represents all qualities of a product.
For example: For a warm coat this is about fit, material, rain repellent ability,
high-quality fasteners
3. Expected Product:
It is the product you have to have.
That coat should be really warm and protect from the weather and the wind
and be comfortable when riding a bicycle.
4. Augmented Product:
This refers to all the additional factors which sets the product apart from that of
the competition.
For example: Is that warm coat in style, its color trendy and made by a
well-known fashion brand?
5. Potential Product:
This is about augmentations and transformations that the product
may undergo in the future.
For example: A warm coat that is made of a fabric that is as thin as paper and
therefore light as a feather that allows rain to automatically slide down.
Price:
The price is the amount a customer pays for the product. It is determined by a
number of factors including market share, competition, material costs, product
identity and the customer's perceived value of the product. The business may
increase or decrease the price of product if other stores have the same product.
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Place:
Place is the location or kind of outlet a product is sold at and it also includes the
channel/distribution. Channel is the mechanism through which goods and/or
services are moved from the manufacturer/ service provider to the user or
consumer.
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Promotion:
This includes all of the tools available to the marketer for 'marketing
communication'. As with Neil H. Borden's marketing mix, marketing
communications has its own 'promotions mix.' Think of it like a cake mix, the
basic ingredients are always the same. However if you vary the amounts of one
of the ingredients, the final outcome is different. It is the same with promotions.
You can 'integrate' different aspects of the promotions mix to deliver a unique
campaign.
1. Personal Selling
2. Sales Promotion
3. Public Relations
4. Direct Mail
5. Trade Fairs and Exhibitions
6. Advertising
7. Sponsorship
Let us look at the individual components of the promotions mix in more detail.
Remember all of the elements are 'integrated' to form a specific communications
campaign.
1. Personal Selling:
2. Sales Promotion:
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3. Public Relations (PR):
4. Direct Mail:
Direct mail is very highly focused upon targeting consumers based upon a
database. As with all marketing, the potential consumer is 'defined' based upon a
series of attributes and similarities. Creative agencies work with marketers to
design a highly focused communication in the form of a mailing. The mail is sent
out to the potential consumers and responses are carefully monitored. For
example, if you are marketing medical text books, you would use a database of
doctors' surgeries as the basis of your mail shot. 5. Trade Fairs and Exhibitions
Such approaches are very good for making new contacts and renewing old ones.
Companies will seldom sell much at such events. The purpose is to increase
awareness and to encourage trial. They offer the opportunity for companies to
meet with both the trade and the consumer.
6. Advertising:
7. Sponsorship:
The elements of the promotional mix are then integrated to form a unique, but
coherent campaign.
Process:
Process is another element of the extended marketing mix, or 7P's.There are a
number of perceptions of the concept of process within the business and
marketing literature. Some see processes as a means to achieve an outcome, for
example - to achieve a 30% market share a company implements a marketing
planning process.
Another view is that marketing has a number of processes that integrate together
to create an overall marketing process, for example - telemarketing and Internet
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marketing can be integrated. A further view is that marketing processes are used
to control the marketing mix, i.e. processes that measure the achievement
marketing objectives. All views are understandable, but not particularly customer
focused.
For the purposes of the marketing mix, process is an element of service that sees
the customer experiencing an organization’s offering. It's best viewed as
something that your customer participates in at different points in time. Here are
some examples to help your build a picture of marketing process, from the
customer's point of view.
Example - Going on a cruise - from the moment that you arrive at the dockside,
you are greeted; your baggage is taken to your room. You have two weeks of
services from restaurants and evening entertainment, to casinos and shopping.
Finally, you arrive at your destination, and your baggage is delivered to you. This
is a highly focused marketing process.
Physical Evidence:
Physical evidence is the material part of a service. Strictly speaking there are no
physical attributes to a service, so a consumer tends to rely on material cues.
There are many examples of physical evidence, including some of the following:
A sporting event is packed full of physical evidence. Your tickets have your team's
logos printed on them, and players are wearing uniforms. The stadium itself could
be impressive and have an electrifying atmosphere. You travelled there and
parked quickly nearby, and your seats are comfortable and close to restrooms
and store. All you need now is for your team to win! Some organizations depend
heavily upon physical evidence as a means of marketing communications, for
example tourism attractions and resorts (e.g. Disney World), parcel and mail
services (e.g. UPS trucks), and large banks and insurance companies (e.g. Lloyds
of London)
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8. Branding
Brands are different from products in a way that brands are what the
consumers buy, while products are what companies make.
Brand is a promise that the product will perform as per consumer’s expectations.
1. Source of product
2. Delegating responsibility to the manufacturer of product
3. Lower risk
4. Low search cost
5. Quality symbol
6. Deal or pact with the product manufacturer
7. Symbolic device
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in the desired manner consistently. As long as the consumers get benefits and
satisfaction from consumption of the product, they will more likely continue to
buy that brand.
9. Brand Equity:
A brand's power derived from the goodwill and name recognition that it has earned
over time, which translates into higher sales volume and higher profit margins
against competing brands.
Perceived Quality
Perceived Quality refers to the customer‘s perception about the total quality of the
brand. While evaluating quality the customer takes into account the brands
performance on factors that are significant to him and makes a relative analysis
about the brand‘s quality by evaluating the competitor‘s brands.
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Brand Positioning:
Brand positioning refers to ―target consumer‘s reason to buy your brand in
preference to others. It ensures that all brand activity has a common aim; is guided,
directed and delivered by the brand‘s benefits/reasons to buy. It focuses at all
points of contact with the consumer.
It is the single feature that sets your service apart from your competitors. For
instance, Kingfisher stands for youth and excitement. It represents brand in full
flight.
Brand Extension:
Brand extension refers to the expansion of the brand itself into new territories or
markets. For instance, if a soft drink manufacturer unveils a line of juices or bottled
water products under its company name, this would constitute an example of brand
extension. The brand, or company, is an established name, and so the name alone
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can serve to drive customers to try new products completely unrelated to the
older product lines.
Line Extension:
Line extension refers to the expansion of an existing product line. For instance, a
soft drink manufacturer might introduce a "Diet" or "Cherry" variety to its cola line,
while a toy manufacturer might introduce new characters or accessories in its line
of action figures. In short, line extension adds variety to its existing product for the
sake of reaching a more diverse customer base and enticing existing customers
with new options.
Benefits:
A line extension can reinvigorate a product line, bringing it back into the public
awareness by drawing new customers and higher profits. A brand extension can
increase profits by allowing manufacturers to tap into new markets and offer
increased diversity in their inventory. Line extensions and brand extensions both
allow companies to promote new products with reduced promotional costs because
the new lines or brands benefit from being part of an established name.
Risks:
Any time a company introduces a new brand or line, the company name could
become tarnished if the product proves to be an immense failure. Consumers might
feel less inclined to support the company's new products in the future. So each new
extension, in some way, carries the reputation of the entire company, and that can
backfire. Extensions can also cause intra-firm competition, wherein conflict arises
among different divisions of a company.
Product Mix:
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10. Product Life Cycle:
The Product Life Cycle (PLC) describes the stages of a product from launch to being
discontinued. As we will see in the example, the product lifecycle can be reviewed
across an entire category, or in the context of an individual company product. It is a
strategic tool that helps companies plan for new product development and refine
existing products
There are 4 stages shown in the table below to the lifecycle process, although
decline can be avoided by reinventing elements of the product. It is also recognized
that some products never move beyond the introduction phase whilst others move
through the life cycle much faster than others.
2. Growth:
Here, the product is being bought and with volume, the price declines.
Distribution increases and promotion focuses on product benefits
3. Maturity:
Here, the product competes with alternatives and pricing drops. Distribution
becomes intense (it’s available everywhere) and promotion focuses on the
differences to competitors’ products.
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4. Decline:
The product is reaching the end of its life and faces fewer competitors. The price
may rise and distribution has become selective as some distributors have dropped
the product. Promotion aims to remind customers of its existence.
1. Introduction:
• Yoghurt available in health food stores
• Functional and plain packaging
• Promoted as a health food
2. Growth:
• Yoghurt now available in supermarket chiller cabinets
• Packaging gets a makeover
• New flavors introduced; Strawberry and Vanilla
3. Maturity:
• Product re-invented with added fruit, added muesli, added chocolate!
• Packaging changes into different shapes and sizes
• Promoted as a fun snack and a luxury treat
4. Decline:
• Ad campaign evoking brand association through remembrance and fondness
• Brand available at select retail megastores only
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11. Different Types of Marketing:
Business to consumer marketing (B2C):
Business to consumer marketing is when a business markets products to a
consumer market. A consumer is a buyer of products that are not business
related. B2C products include goods and services such as food, clothes, cars,
houses, phone services, credit repair services, etc.
B2C marketing strategy helps the business house in directly targeting the
customers. Different marketing channels used:
BTL (Below the line) campaigns: Address consumers in malls or other public
places by conducting events, Door-to-door marketing, Newspaper, television and
radio online advertising like Podcasts
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12. Important Strategic Models:
SWOT:
A SWOT analysis (alternatively SWOT matrix) is a structured planning method
used to evaluate the strengths, weaknesses, opportunities, and threats involved
in a project or in a business venture. A SWOT analysis can be carried out for a
product, place, industry or person. It involves specifying the objective of the
business venture or project and identifying the internal and external factors that
are favorable and unfavorable to achieve that objective
Strengths:
Characteristics of the
business or project that give it
an advantage over others.
Weaknesses:
Characteristics that place the
business or project at a
disadvantage relative to others
Opportunities:
Elements that the
project could exploit to its advantage
Threats:
Elements in the environment
that could cause trouble for the
business or project
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Things to be kept in mind while using this model:
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PESTEL framework:
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BCG Matrix:
Question marks:
They do not generate profits unless the company decides to invest resources
to maintain and even increase the market share (become potential stars).
They have a high demand for liquidity and the company must ask the
question: Invest or give up the product?
Stars:
These are promising products for the company, they even can be considered
as leaders of the industry. The strategy is to boost these products by
appropriate investments to monitor the growth and maintain a position of
strength. These products require a large amount of cash but also contribute
to the company's profitability. They are becoming progressively cash cows
with market saturation.
Cash Cows:
These are products or services which are mature and which generate
interesting profits and cash, but need to be replaced because the future
growth will be lower. They must therefore be profitable because they can
finance other activities in progress (including stars and question marks)
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Dogs:
These products are positioned in a declining market and highly competitive
and that the company wants to get rid of soon as they become too expensive
to maintain. The company must minimize the dogs. The company must
decide whether it still injects liquidity, otherwise it will eliminate the dogs in
the near future.
Instead of simply utilizing various media to help tell a brand's overall story, with
IMC, marketing leverages each communication channel's intrinsic strengths to
achieve a greater impact together than each channel could achieve individually.
It requires the marketer to understand each medium's limitation, including the
audience's ability/willingness to absorb messaging from that medium.
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6. Increasing media and audience fragmentation: With the exception of
the decline of newspapers, media outlets, such as magazines and television
stations, increased dramatically from 1980 to 1990. Additionally, companies
could use new technologies and computers to target specialized audiences
based on factors such as ethnic background or place of residence.
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Thus, IMC is nothing but ONE VOICE, ONE MESSAGE, and ONE STRATEGY
Example:
1. Vodafone‘s ZooZoo Campaign:
This Campaign was showcased on all the different channels:
YouTube, Television, Websites, Journal Blogs, and Billboards.
2. Airtel: Har Ek Friend Zaroori Hota hain
3. ICICI bank: Bande Acche Hain
4. Cadbury: Kuch Meetha Ho Jaaye
5. Tata Tea: Jaago Re
6. Seagram Imperial Blue: Men Will be Men
2. Cost-Per-Acquisition (CPA):
Represents the ratio of the total cost of a pay-per-click (PPC) campaign to the
total number of leads or customers, often called “CPA” or “conversion cost.”
3. Cost-Per-Click (CPC):
A method of paying for targeted traffic. For a fee, sites like Google or
Facebook direct traffic to your site. You agree to pay a set amount for every
click.
4. CPM:
This is the “cost-per-thousand” views of an advertisement. Often, advertisers
agree to pay a certain amount for every 1,000 customers who see their ad,
regardless of conversion rates or click-thrus. The “M” in “CPM” is derived from
the Latin word for 1,000
5. Inbound Link:
A link from another website directed to yours, also known as a “backlink.”
Related marketing areas that focus on inbound links include link popularity,
social media and online PR, all of which explore ways to collect quality links
from other websites.
6. Landing Page:
A stand-alone Web page that a user “lands” on, commonly after visiting a paid
search-engine listing or following a link in an email newsletter. This kind of
page often is designed with a very specific purpose (i.e. conversion goals) for
visitors
7. Open-Source Software:
Computer software with a special license that allows users in the general
public to edit and improve the source code. Famously exemplified in the
Firefox Web browser and Wikipedia encyclopedia, it is an example of the kind
of collaboration that is encouraged under the Web 2.0 ethos. Contrast with
closed, propriety software that does not share its codebase beyond an
exclusive group of authorized developers.
8. Pay-Per-Click:
Also known as “PPC,” this type of paid search marketing involves placing
advertisements that run above or besides (and occasionally below) the free
search-engine listings on Google, Bing, and Yahoo!. Typically, to get the
highest position among these ads, website owners place a per-click bid. It’s
not uncommon to participate in a bidding war for coveted top spots. For
example, if a website’s listing is among the top 3 advertisements on a page,
the same ad appears in the same location on partner websites. Some
marketing firms, including Fathom, provide bid management services to get
the most value for each search term.
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9. RSS:
“Really simple syndication” is the process by which content such as blog posts
or podcasts can be updated regularly and syndicated to subscribers in feeds.
RSS feeds enable users to access content updates from various outlets—e.g.
their favorite blogs, news sites, and digital audio/video providers—all in one
central location.
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15. Go-to-Market Strategy:
A go-to-market strategy (GTM strategy) is an action plan that specifies how a
company will reach customers and achieve competitive advantage. The purpose
of a GTM strategy is to provide a blueprint for delivering a product or service to
the end customer, taking into account such factors as pricing and distribution. A
GTM strategy is somewhat similar to a business plan, although the latter is
broader in scope and considers such factors as funding.
The bottom of the pyramid is the largest, but poorest socio-economic group.
Although they don’t have a high purchasing power parity, but by their sheer number
there is a lot of money in the market. Contrary to the popular view, BOP consumers
are getting connected and networked. They are rapidly exploiting the benefits of
information networks. Distribution access to the BOP markets is very difficult and
therefore represents a major impediment for the participation of large firms and
MNCs. Initiatives like E-choupal (ITC) and Shakti (HUL) are a part of it.
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17. What is Viral Marketing?
Viral Marketing is known as a word of mouth or these days with the increased use of
the internet “word of mouse” with the objective of marketing the product of a
company via tools such as social media networking sites like Orkut, Facebook, social
media sharing sites such as YouTube etc. or sites which have a social connect such
as Twitter, BlogSpot etc.
In short it can be defined as any strategy which uses individuals to pass on a
marketing message to others; creating scope for exponential growth in the
company’s spread of the intended message.
Companies could even use non-internet mediums such as phone SMS etc. t market
their products.
The two basic differentiators of viral marketing from other marketing mediums are:
1. It is rather inexpensive in its use and also value for money since at times it
may be more effective a marketing tool than contemporary marketing
media. For example: Cadbury using the Gorilla advertising campaign
2. Its uses the basic tenet of a virus in its spreading i.e. its spreads from one
person to another just as a virus would spread.
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18. What is Word Of Mouth Marketing?
Definition:
Word of mouth is a reference to the passing of information from person to
person. Originally the term referred specifically to oral communication (literally
words from the mouth), but now includes any type of human communication,
such as face to face, telephone, email, and text messaging.
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have an excellent method to disseminate brand awareness for new websites,
products or services. Exclusivity invites curiosity and scarce products generate
consistent demand and conversation.
Successful examples:
1. Gmail:
Google did no marketing, they spent no money. They created scarcity by
giving out Gmail accounts only to a handful of "power users." Other users who
aspired to be like these power users aspired for a Gmail account and this
manifested itself in their bidding for Gmail invites on eBay. Demand was
created by limited supply; the cachet of having a Gmail account caused the
word of mouth, rather than any marketing activities by Google.
2. Tupperware popularization
Unsuccessful examples:
1. Hotmail:
Hotmail "piggybacked" on personal emails from one person to another to
publicize their free email service. At a time when few people had email, the
first and only free email service in the marketplace was appealing and novel --
hence their rapid adoption and spread. But the Hotmail users did not
voluntarily pass it on; they had no choice about Hotmail adding the "sign up"
link at the end of their personal emails.
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21. Distribution models:
There are two types of distribution models used in the B2C (Business to
Consumer) industry. These include the following:
• Direct - Indirect
• Distributor:
The Stockists are region wise agents who store products of a company. They
may or may not be exclusive.
• Whole seller:
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Person or firm that buys large quantity of goods from various producers or
vendors, warehouses them, and resells to retailers.
• Retailer / Dealer:
The retailer is end customer. This person will stock many competing goods
and sells the products to the end consumer.
• Define Marketing
• Distribution Strategy
Examples
• What is Integrated Marketing Communication (IMC) and how does digital marketing
fit into it
• Sales Management Related Questions (e.g. are you willing to travel, will you work at a
remote village, what will you do if a Muslim Salesperson asks for a leave on Eid?)
• How does the life of an Area Sales Manager look like? What are his/her daily deliverables
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