Goa Institute of Management

Foreword

It is a matter of great pride for me to write the foreword for ‘Ityukta’,

the Newsletter for our very own Marketing Club - MECCA.

We, the batch of GIM Y2K had founded MECCA, way back in 1999,
to bring together like-minded students who got excited about Sales &
Marketing, Brands, Advertising, Market Research and Consumer Be-
haviour. I still remember we even ran a Name & Logo contest
amongst students. There was voting and only then we finalised on the name MECCA. All this in a physical
world... I wish there was Facebook and connectivity then, perhaps we would have got more participation.

Our first major initiative was a Quiz for the industry and colleges called WIZBIZ, which happened soon after
forming the club. The reason I feel proud is the very fact that not just MECCA and WIZBIZ survived, but it
scaled unprecedented heights. Today, GIM WIZBIZ happens to be one of the biggest and most sought after B
-School Corporate quiz in the country with Major Prize Money, and I still remember us toiling from Panjim to
Ponda for meagre amount of sponsorships. Today MECCA is also organising National Level Case Study com-
petitions, with a lot of fanfare. All these initiatives should help MECCA and GIM to scale greater heights.

This note will be incomplete without mentioning the entrepreneurial drive of few of the other founding mem-
bers, who toiled hard to make the Club and WIZBIZ a success. Mainak Chakravarty, Aruni Ghosh, Chetan
Ghadge, Kaushik Ghate, Ankur Mittal, Vijay Sequeira, Girish Nair, Jason Rego, Jaideep Kumar, Saurav
Mukherjee, Himanshu Narang, and Shishir Jha. I know I have missed many others, and it is going to come
back to bite me later.

I take this opportunity to thank every member of MECCA of the subsequent batches. I have met quite a few
of them over the years and every time felt proud of their achievements and drive to make MECCA even big-
ger. Today, for that matter, we have the first Newsletter as well.
All the Best and here's to new beginnings!
Cheers!

Sagnik Ghosh
Batch of 2000
Founding Member - MECCA - The Marketing Inveterate

Senior Vice President

Head of Brand and Marketing Strategy
Star Network
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 MARKETING ESSENTIALS
Terms that you should know!

MARKETING REVISION Marketing Mix

(4 P’s )

Marketing: is an organizational function and

a set of processes for creating, communi-
cating, and delivering value to customers and
for managing customer relationships in ways
that benefit the organization and its stake- 1. Product
holders.

Anything that can be offered to a market

Evolution of Marketing for attention, use or consumption that
might satisfy a want or need. It includes
 Simple Trade Era (Pre-Industrial any tangible item, services, ideas, con-
Revolution) cepts or a person.
 Production Era (1860’s – 1920’s)
 Sales Era (1920’s – 1940’s) 2. Price
 Marketing Department Era (1940’s – The sum of the values that consumers
1960’s) exchange for the benefits of having or
 Marketing Company Era (1960’s – using the product or services.
1990’s)
 Relationship Marketing Era (1990’s – 3. Place (Distribution Channel)
2010)
A set of interdependent organizations
 Social/Mobile Marketing Era (2010 – involved in the process of making a
Present) product or service available for use or
consumption by the consumer or busi-
ness user.

“Marketing is the
art of creating, 4. Promotion
communicating,
and delivering Promotion is coordination of methods
value to the of communication that a marketer may
customer and use to provide information to different
shareholders” parties about the product. Promotion
comprises elements such as advertising,
public relations, personal selling, etc.
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Market
A place where buyers and sellers meet, goods
and services are offered for sale, and transfer
of ownership occurs. “A Business has
only two
functions:
Roles comprising the Market Marketing and
Innovation”
 The Marketer
 The Decision Maker
 The Consumer
 The Purchaser
 The Influencer Segmentation, Targeting and Positioning
Market Segmentation
Difference between Needs, Wants and The process of dividing a broad market into
Demands subsets of consumers, businesses or
countries who have, or are perceived to have
Needs
common goals, interests and priorities and
Needs are basic human requirements and then designing and implementing strategies to
include food, clothing and shelter. An extend- target them.
ed part of the needs today has become educa-
tion and healthcare.
Wants Bases of segmentation

Needs become wants when they are directed  Geographic Segmentation

to specific objects that might satisfy the Region: by continent, country, state or even
human needs. neighbourhood
Demands Size of metropolitan area: segmented
Human wants that are backed by buying according to size of population
power. Population density: often classified as urban,
suburban or rural
Climate: according to weather patterns
common to certain geographic region

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 Demographic Segmentation  Defining the abilities of the company
and resources needed to enter a market
Age Education
 Analysing competitors on their
Gender Ethnicity
resources and skills
Family Size Occupation
 Considering the company’s abilities
Income Nationality compared to the competitor’s abilities
Religion Socio Economic Classes  Deciding on the actual target markets

 Psychographic Segmentation
Grouping customers according to their Positioning
lifestyle. Few tools to measure lifestyle: Positioning is the act of designing a
Activities Interests company’s offering and image to occupy a
distinctive place in the minds of the target
Opinions Attitudes market.
Values It can also be defined as, “All the activities
undertaken by a marketer to create and
maintain the concept of value regarding its
 Behavioural Segmentation
brand in the minds of customers as against its
Based on actual customer behaviour towards competitor’s brands.”
products. Few variables to measure:
Benefits sought Usage rate
Brand loyalty Readiness to buy
User status: potential, first-time, regular, etc.
Occasions: holidays and events that stimulate
purchases

Targeting
The process of evaluating each market
segment’s attractiveness and selecting one or
more segments to enter.
After the most attractive segments are select-
ed, a company should not directly start
targeting all these segments – other important
factors come into play defining a target
market. Four sub activities form the basis for
deciding on which segments will actually be
targeted.
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Three important types of targeting strategies:
Strategy Description
Undifferentiated Sending the same promotional
message to everyone
Concentrated/ Designing a promotional mes-
Niche sage that communicates the
benefits desired by a single
specific segment
Differentiated Designing more than one pro-
motional message, with each
communicating different bene-
fits
“Situational
Analysis is the
foundation of a
marketing plan”
Marketing Environment
The market environment is a marketing term
and refers to factors and forces that affect a
firm’s ability to build and maintain successful
relationships with customers.
 Meso Environment
The industry in which a company operates
and the industry markets. Meso environment
consists of factors of the market wherein the
business is active:
Distribution Competition
Competitors General industrial factors
 Micro (Internal) Environment
Small forces within the company that affect
its ability to serve its customers. Factors that
affect micro environment are:
Customers Employees
Competitors Supplier
Shareholders
Positive coordination between different de-
partments creates good internal environment
and hurdles of coordination between differ-
ent departments damages internal environ-
ment.

There are three levels of the environment: Situational Analysis

 Macro Environment A situational analysis often is called the
foundation of a marketing plan. A situational
Macro environment refers to those factors
analysis includes a thorough examination of
which are external forces in the company’s
internal and external factors affecting a
activities. Few elements of macro environ-
business. It creates an overview of the
ment are:
organization that will lead to a better
Economic Political understanding of the factors that will
Legal Socio-cultural influence its future.

Demographic Technological

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5C Analysis
5C analysis is an environmental scan on five
key areas especially applicable to marketing
decisions. They are:
1. Company: analysis of the internal Opportunities
conditions of the organization, its
 Can we enter new market?
resources and product
 Can we expand our product line?
2. Customers: analysis of markets, custom-
er segments  Can we grow the market size?
3. Competitors: analysis of competing Threats
organizations
 Are we likely to get new competitors?
4. Collaborators: analysis of the people
 Will new government policies hold up
with whom it is possible to establish co-
our business?
operation (distributors, suppliers, etc.)
 Are we defenceless to economic down-
5. Climate/Context: analysis of other envi-
turns?
ronmental conditions of the business
operation (political, economic, social/  Other products that may be substituted
cultural, technological) for our product?

SWOT Analysis
Strength
 Do we have a unique competitive ad-
vantage?
 Do we have sufficient financial re-
sources?
 Are we known as the market leader?
 Do we have most modern technologies?
Weakness
 Do we have lack of a clear strategic di-
rection?
 Are our facilities obsolete?
 Is our profitability lesser than others?
 Do we have internal operating prob-
lems?

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Porter’s Five Forces Analysis
The Porter model involves scanning the
environment for threats from competitors
and identifying problems early on to
minimize threats imposed by competitors.
 Threat of new entrants: New entrants
affect the company’s profit as the con-
sumers have more variety to choose
from
 Bargaining power of buyers: Their
ability to affect the price and demanded
quantity of given product/service
 Threat of substitute: More than one
firm producing similar or the same
product or service
 Bargaining power of suppliers: Com-
pany’s dependence on resources the
suppliers provide to create their product
or service
 Rivalry among existing competitors:
Rivals fighting to be dominant in the
market, to stay in business and maxim-
ize profit
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Customer Value
Customer value has two aspects: desired value
and perceived value.
Desired value refers to what customers desire
in a product or service. Perceived value is the
benefit that a customer believes he or she
received from a product after it was
purchased.
Customer Satisfaction
The level to which a product’s perceived
performance matches a buyer’s expectations.
Value Chain Analysis
Value Chain Analysis is a useful way of think-
ing through the ways in which you deliver
value to your customers, and reviewing all of
the things you can do to maximize that value.
It takes place as a three stage process:
 Activity Analysis, where you identify the
activities that contribute to the delivery
of your product or service.
 Value Analysis, where you identify the
things that your customers value in the
way you conduct each activity, and then
work out the changes that are needed.
 Evaluation and Planning, where you de-
cide what changes to make and plan
how will you make them.
PESTEL Analysis
Political
Political factors affects the organizations in
terms of government regulations and legal
issues and define both formal and informal
rules under which the firm must operate.
 Political stability
 Tax policy
 Employment and labour law
Economic
Economic factors affect the business opera-
tions and decision making of the organiza-
tion. For example, the predicted recession is
preventing the organizations from increasing
the workforce.
 Economic growth
 Interest rates
Technological
Technological factors affect the cost and
quality of the outputs. These also determine
the barriers to entry and minimum efficient
production level.
 Automation
 Rate of technological change
 R&D activity
Environmental
Environmental factors refer to ecological and
environmental aspects such as weather, cli-
mate and climate change. Climate change is a
hot topic these days and organizations are
restructuring their operations thus giving
space to innovation and concept of Green
Business.
Legal
Legal factors influence the company’s opera-
tion, its cost, and the demand for its prod-
ucts.

 Inflation rate  Consumer law

 Anti-trust law

Social  Employment law

 Discrimination law
Social factors refer to the cultural and demo-
graphic aspects of the environment. For ex-
ample, increase in the health consciousness
may affect the demand of the company’s
product.
 Age distribution
 Population growth rate
 Emphasis on safety
 Career attitudes

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Strategic Marketing Planning
Planning
Refers to matching an organization’s
resources with the available market
opportunities over the long run.
Strategic Planning
The process of developing and maintaining
strategies to maximize the capabilities of
organizations to achieve the objective in the
changing marketing environment.
Opportunity Window
Refers to the limited amount of time availa-
ble during which, a firm’s resources coincide
with a particular market opportunity.
Mission Statement
Refers to over-all boundaries of an organi-
zation’s activities, which includes three as-
pects:
 What customers it serves
 What needs it satisfies
 What type of product it offers
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It defines the present state or purpose of an
organization.
Vision
 Defines the optimal desired future state
of what an organization wants to
achieve over time
 Provides guidance and inspiration as to
what an organization is focussed on
achieving in the coming years
Objectives and Goals
Refers to the achievement of a desired out-
come.
Tactic
Means by which a strategy is implemented.
Strategic Business Units (SBU’s)
A unit of the company that has a separate
mission and objectives and that can be
planned independently from other company
businesses.
To be identified as an SBU an entity should:
 Be a separately identifiable business
Boston Consulting Group (BCG) Matrix
The Boston Consulting group’s product
portfolio matrix (BCG) is designed to help
with long-term strategic planning, to help a
business consider growth opportunities by
reviewing its portfolio of products to decide
where to invest, to discontinue or develop
products.

This framework assumes that an increase in

relative market share will result in an in-
crease in the generation of cash. This as-
sumption often is true because of the expe-
rience curve; increased relative market share
implies that the firm is moving forward on
the experience curve relative to its competi-
tors, thus developing a cost advantage. A
second assumption is that a growing market
requires investment in assets to increase ca- to hold their market share. Thus they pro-
pacity and therefore results in the consump- duce a lot of cash and profit margin is rela-
tion of cash. Thus the position of a busi- tively high.
ness on the growth-share matrix provides an
indication of its cash generation and its cash
consumption.
Question marks
In question marks the market growth rate is
Stars high but the product growth is either stable
In Stars the market growth rate is high as well or decreasing. They required a lot of cash to
as the product growth rate is also high and hold their market share. Managers have
capturing a large market size. They need question marks for low-share. Managers may
heavy investment and excellent strategies. be plan for new investments.
Whenever the market growth will slow down, Dogs
product can turn into Cash Cows category.
In Dogs, the market growth rate is low and
Cash Cows the product growth rate is also low. They
In Cash Cows market growth rate is low but may generate enough cash to maintain
the product growth rate is either stable or themselves but do not promise to be large
high relative market growth rate. Due to es- sources of cash. All such products are near
tablished products they need less investment to decline stage.

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Igor Ansoff Matrix
The matrix focusses on the firm’s present
and potential products and markets
(customers). By considering ways to grow
via existing products and new products, and
in existing markets and new markets. There
are four possible product-market combina-
tion:
Market Penetration – the firm seeks to
achieve growth with existing products in
their current market segments, aiming to in-
crease its market share.
Market Development – the firm seeks
growth by targeting its existing products to
new market segments.
Product Development – the firms devel-
ops new products targeted to its existing
market segments.
Diversification – the firm grows by diversi-
fying into new businesses by developing
new products for new markets.
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Market Research
Research is the development, interpretation
and communication of decision-oriented
information to be used in all phases of the
marketing process.
Why Research?
Competitive pressure
Expanding market
Customer expectation
Cost of a mistake
Marketing Research Projects
Define the objective
Objective is to solve a problem. Research is
not a solution but no solution can be dis-
covered without research.
Conduct a Situational Analysis
A situational analysis often is called the
foundation of a marketing plan. A situation-
al analysis includes a thorough examination
of internal and external factors affecting a
business. It creates an overview of the or-
ganization that will lead to a better under-
standing of the factors that will influence its
future.
Conduct an Informal Investigation
Informal investigation consists of gathering
readily available information from the com-
pany, middlemen, competitors, advertising
agencies, and consumers.
Place and conduct a Formal Investiga-
tion
Formal investigation consists of gathering
primary and secondary data and their re-
sources.
Primary Data are the new data gathered
specifically for the project at hand.
Secondary Data are available data, already
gathered for some purpose.
Sources of Primary Data
Survey Method
Mail Survey
Personal Interviews
Observation Method
Experimental Method
Analyse the Data
The end of the investigation is the re-
searcher’s conclusions and recommenda-
tions in the form of a written report.
Conduct a Follow Up
Researcher should follow up their studies to
determine whether their results and recom-
mendations are being used as well as im-
proving the research data in the future.
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Marketing to B2B
While marketing to a B2B you want to focus
on the logic of the product. You do this by
focusing on the features of the product.
There is little to no personal emotion in-
volved in the purchasing decision. You want
to focus on understanding the organization-
al buyers and how they operate within the
confines of their organization's procedures.
The B2B market has a thirst for knowledge
and they are information seekers.
Marketing to B2C
While marketing to a consumer you want to
focus on the benefits of the product. Their
decision is more emotional. Consumers are
different and demand a variety of distribu-
tion channels for convenience, not so with
the B2B market. Consumers are less likely to
be interested in a lengthy marketing mes-
sage. They will want you to get right to the
point. Consumers don't want to work to un-
derstand your benefits, instead they will
want you to clearly point out the benefits to
them.
 B2B vs. B2C B2B B2C
Size of B2B vs B2B markets are generally B2C markets that are typically
B2C Markets small vertical markets, often large broad markets of tens to
niche in size, comprised of a thousands to millions of sales
few thousand sales prospects prospects.
to maybe as large as 100,000
prospects.
Purchasing B2B sales typically have a B2C sales have short purchas-
Power purchasing process that is ing periods of anywhere from
usually defined in months a few minutes (the impulse
and the sale is complex, of- buy), to a few days.
ten taking additional months
to complete.
Sales Process B2B sales re- B2C sales are usually direct to
quire consultative selling the consumer or involve a re-
(selling based on under- tailer. The sales approach is a
standing a client's needs and traditional product sell of
developing a relationship of “convincing the consumer”
trust). they need the product or ser-
vice being sold.
Cost of a Sale B2B sales are "higher ticket" B2C sales can range in cost
purchases usually costing from a rupee to a few thou-
from just a few thousand ru- sand rupees. Except, for cars
pees to tens of millions of and homes.
rupees.
Purchase Deci- The decision to purchase in B2C purchase decisions tend
sion B2B sales is generally driven to be made based on want
by need and budgets there- more than need or a budget
fore; it tends to be a very ra- and, therefore, are triggered by
tional decision. more emotional decisions.
The Value of Brand identity in B2B mar- Brand identity in B2C markets
Brand kets is created through per- is created through advertising
sonal relationships and con- and now social media.
sultative selling.

Marketing vs. Sales

Marketing Sales
Emphasis is on customer wants Emphasis is on the product
Company first determines customers Company first makes the product and
wants and then figures out how to then figures out how to sell it
make and deliver a product to satisfy
those wants
Management is profit oriented Management is sales volume oriented
Planning is long run oriented, in terms Planning is short run oriented, in
of new products, tomorrows market terms of today’s products and markets
and future growth
Wants of buyers are stressed Needs of sellers are stressed
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Product Classification Industrial Product: Product bought by in-
dividuals and organizations for further pro-
Consumer Product: Product bought by
cessing or for using in facilitating business.
final consumer for personal consumption.
Materials and Parts
Convenience Product
Farm product, ex: Fruits, Cotton, etc.
Product that the consumer usually buys
Natural product, ex: Fish, Iron, etc.
frequently, immediately and with a
minimum of comparisons and buying
Capital Items
efforts. Ex: Toothpaste
Capital items of office accessories, instal-
lations, equipment, operating materi-
Shopping Product
als, etc.
Good that the customer purchase after
the process of selection. It requires
Supplies
comparison on the basis of suitability,
Operating supplies (DVD’s, office sta-
quality, price, and style. Ex: Clothing
tioneries)
Speciality Product
Services
Products with unique characteristics or
Maintenance and repair services
brand identification for which a sig-
nificant group of buyers are willing
to make a special purchase effort. Ex-
pensive and fashionable shopping
goods like designer wear clothing.

Unsought Product
Products that the consumer either does
not know about or do not want to
think normally before buying. It has
some emotional feelings attached. Ex:
Donations

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Product Life Cycle will buy the product have already purchased
The product life cycle has 4 very clearly de- it), or because the consumers are switching to
fined stages, each with its own characteris- a different type of product. While this decline
tics that mean different things for business may be inevitable, it may still be possible for
that are trying to manage the life cycle of companies to make some profit by switching
their particular products. to less-expensive production methods and
cheaper markets.
Introduction Stage – This stage of the cy-
cle could be the most expensive for a com-
pany launching a new product. The size of
the market for the product is small, which
means sales are low, although they will be
increasing. On the other hand, the cost of
things like research and development, con-
sumer testing, and the marketing needed to
launch the product can be very high, espe-
cially if it’s a competitive sector.

Growth Stage – The growth stage is typi-

cally characterized by a strong growth in
sales and profits, and because the company
can start to benefit from economies of scale
in production, the profit margins, as well as
the overall amount of profit, will increase.
This makes it possible for businesses to in-
vest more money in the promotional activity
to maximize the potential of this growth
stage.
Product Life Cycle Stages
Maturity Stage – During the maturity
stage, the product is established and the aim
for the manufacturer is now to maintain the
market share they have built up. This is
probably the most competitive time for
most products and businesses need to invest
wisely in any marketing they undertake.
They also need to consider any product
modifications or improvements to the pro-
duction process which might give them a
competitive advantage.

Decline Stage – Eventually, the market for

a product will start to shrink, and this is
what’s known as the decline stage. This
shrinkage could be due to the market be-
coming saturated (i.e. all the customers who

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Business Market Participants in the Business Buying Pro-
cess
All organizations that buy goods and ser-
vices for use in the production of other Buying Centre: All the individuals and
products and services that are sold, rented, units, who are participating, in the process
or supplied to others. of business buying decisions.
Organizational buying Users: Members of the organization who
will use the product or service; users often
It is the decision making process by which a
initiate the buying proposal and help define
formal organizations establish the need for
product specification.
purchased products and services and identi-
fy, evaluate and choose among alternative Influencers: People in an organization’s
brands and suppliers. buying centre who affect the buying deci-
sion, they often help define specifications
Types of Buying Situation
and also provide information for evaluating
Straight re-buy alternatives.
A business buying situation in which the Deciders: People in the organization’s buy-
buyer routinely reorders something without ing centre who have formal or informal
any modifications. power to select or approve the final suppli-
ers.
Routine vendors from the approved ven-
dor list Gatekeepers: People in the organization’s
Low involvement, minimal time commit- buying centre who control the follow of in-
ment formation to others.
Ex: Papers for printing
Modified re-buy
A business buying situation in which the
buyer wants to modify product specifica-
tions, prices, terms, or supplier.
Moderate level of involvement and time
commitment
Ex: Desktop computers
New Task
A business buying situation in which the
buyer purchases a product or services for
the first time.
High level of involvement and time
commitment
Ex: Selecting a website design/media
firm
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Business Buying Process

Problem Recognition
The first stage of the business buying
process in which someone in the
company recognizes a problem or
need that can be met by acquiring a
good or a service.
General Need Description
At this stage of business buying process,
company describes the general char-
acteristics and quantity of a needed
item.
Order-routine Specification
The buyer writes the final order with the
chosen supplier(s), listing the tech-
nical specifications, quantity needed,
expected time of delivery, return poli-
cies and warranties.
Performance Review
The buyer rates its satisfaction with sup-
pliers, deciding whether to continue,
modify, or drop them.

Product Specification
Organization decide on the product and
specifies the best technical product
characteristics of a needed item.

Value Analysis
An approach to cost reduction, in which
components are studied carefully to
determine if they can be redesigned,
standardized or made by less costly
methods of production.

Supplier Search
Buyer tries to find the best vendor availa-
ble.

Proposal Solicitation
The buyer invites qualified suppliers to
submit proposals.

Supplier Selection
The buyer reviews proposals submitted
and selects a supplier or suppliers.

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 Brand Strategy
Line Extension
Using successful brand name to introduce
additional items in given product cate-
gory under the same brand name, such
as new flavours, forms, colours, added
ingredients, or package sizes. Ex:
Hyundai i20, Hyundai Verna, Hyundai
Creta

Brand Extension
Using the same brand name to launch new
Brand or modified products in new catego-
A name, term, sign, symbol, or design, or a ries. Ex: Honda – Cars, Motorcycle,
combination of these intended to identify Generators and Marine Engines
the goods or services of one seller or group
of sellers and to differentiate them from Multi Brands
those of competitors. In this strategy, company market their
products with different brand for each
Brand Equity product. Ex: P&G – Gillette, Ambi
The value of a brand, based on the extent to Pur, Olay, Duracell, etc
which it has high brand loyalty, name aware-
ness, perceived quality, strong brand associa- New Brands
tions, and other assets such as patents, In this strategy company introduces new
trademarks, and channel relationship. brands just to increase their number of
brand or to enter in the new market.
Reason for Branding
For consumers to differentiate between
two products
To help shopkeepers manage their shelf
To help consumers to get consistent
quality
Co-Branding
The practice of using established brand
names of two different companies on the
same product.

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New Product Development Strategy Test Marketing
Idea Generation Before the full introduction of the product,
marketer tests the market with realistic ap-
The systematic search for new product by
proach by free sampling of the product or
generating ideas through research and devel-
by any other sources.
opment.
Commercialization
Idea Screening
After the test marketing, organization de-
Screening new product ideas in order to ac-
cides whether it should be launched or not.
cept good ideas and drop poor ones. If the test market is in the favour of the or-
Concept and Image Development ganization, they go ahead for commerciali-
zation.
A product concept is a detailed version of
the new product idea stated in meaningful
consumer terms. A product image is the way
consumers perceive an actual or potential
product.
Concept Testing
Concept testing is the process of testing
new product concepts, with a group of tar-
get consumers to find out the perception of
the consumer.
Marketing Strategy Development
Designing an initial marketing strategy for a
new product based on the product concept.
Business Analysis
In the process of business analysis we are
analysing the sales, costs, revenue and profit
of the new product, to find out whether
these factors satisfy the company’s objec-
tives or not.
Product Development
Developing the product concept into a
physical product in order to assure that the
product idea can be turned into a workable
product.

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PRICE
The sum of the values that a consumers ex-
change for the benefits of having or using
the product or services.
Types of Cost
Fixed costs
These are that type of costs which occurs at
the establishment of the organization. The
costs are not affected with the production
or sales level.
Variable costs
These are that type of costs which occurs
with each extra unit produce or sale. These
costs are directly related with the level of
production.
Total costs
Total Cost is the sum of the fixed and varia-
ble costs, for any given level of production.
Value Based Pricing
Setting price based on buyers perceptions
of value rather than on the seller’s cost.
Competition Based Pricing
Setting prices based on the prices that com-
petitors charge for similar products.
New Product Pricing Strategies
A. Market Skimming Pricing
Setting a high price for a new product to
skim maximum revenues from the segments
willing to pay the high price. The company
desires to make fewer but generate hand-
some revenue.
B. Market Penetration Pricing
Setting a low price for a new product in or-
der to attract a large number of buyers and
a large market share.
Product Mix Pricing Strategies

Factors Affecting Pricing Decision A. Product Line Pricing Setting the price
steps between various products in a product
Internal Factors line, based on differences of different
 Marketing Objective product’s cost, features, and competitor’s
 Marketing Mix Strategy prices.
 Cost
 Organizational Consideration B. Optional Product Pricing Optional
product pricing is the pricing of accessory
External Factors products along with a main product or price
 The Market for extra value added with the main product.
 Demand
 Competition C. Captive Product Pricing Setting a price
 Environment or products that must be used along with a
main product, such as blades for a razor and
film for a camera.
General Pricing Approaches
D. By Product Pricing Setting a price for
Cost Based Price by products in order to make the main
Cost-plus pricing product’s price more competitive.
Adding a standard mark-up to the
cost of the product. E. Product Bundle Pricing In this ap-
Breakeven pricing proach we create package rates by combin-
In this pricing approach we tried to ing several products and offering the bundle
achieve our break even in our desired at a reduced price.
time period.
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Price Adjustment Strategies
A. Discount and Allowance Pricing
a. Cash Discount
Cash discount is for those customers who
pay their bills punctually or in advance.
b. Quantity discount
Quantity discount is reduction in price for
those customers who purchases in bulk
quantity.
c. Functional discount
This discount is offered by the seller for the
member of the trade channel who performs
certain function for seller, such as selling,
storing, and record keeping.
d. Seasonal discount
The seller offers this discount, for those
buyers, who purchase merchandise or ser-
vices out of season.
e. Allowance
Allowance is promotional Money paid by
the manufacturers to the retailers against his
performance or as per agreement.
B. Segmented Pricing
Selling a product or service at two or more
prices, where the difference in prices is
based on the differences in the environment
of the segment.
C. Psychological Pricing
In this approach price is based on the per-
ceptions of the consumer for the product.
D. Reference Pricing
Price that buyers carry in their minds and
refer to when they look at a given product.
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E. Promotional Pricing
Temporarily pricing products below the list
price, and sometimes even below cost, to in-
crease short-run sales.
F. Geographical Pricing
a. FOB Origin Pricing
A geographical pricing strategy in which
goods are placed free on board a carrier and
the customer pays the actual freight from the
factory to the destination.
b. Uniform-delivered pricing
A geographical pricing strategy, in which the
company charges the same price plus freight
to all customers, regardless of their location.
c. Zone Pricing
A geographical pricing strategy, in which the
company divide their all clients location in
different zones as per distance with the pro-
duction house and fix charges for each zone.
All customers within a zone pay the same
price. The more distance of zone causes
higher the price
d. Basing Point Pricing
A geographical pricing strategy in which the
seller designates some city as a basing point
and charges all customers the freight cost
from that city to the customer location, re-
gardless of the city far from the production
house.
e. Freight-absorption Pricing
A geographical pricing strategy in which the
company absorbs all or part of the actual
freight charges in order to get the business.
Promotion Mix
A. Advertising
Any paid form of non-personal presenta-
tion and promotion of ideas, goods, or ser-
vices by an identified sponsor.
B. Personal Selling
It is personal presentation by the firm’s sales
force for the purpose of making sales and
building customer relationship.
C. Sales Promotion
It is short-term incentives, to encourage the
purchase or sale of a product or service.
D. Public Relations
Building good relations with the company’s
various publics and corporate clients by
publicity and interacting in favourable
moods and media, as well as handling unfa-
vourable rumours, stories and events are al-
so the part of public relation.
E. Direct Marketing
Direct communications with targeted indi-
vidual consumer to obtain an immediate re-
sponse and development of long-term rela-
tionship.
Integrated Marketing Communication
The concept under which a company care-
fully integrates and coordinates its many
communications channels to deliver a clear,
consistent, and compelling message about
the organization and its products.
Developing Effective Communication
 Identifying the Target Audience
 Objective
 Designing a Message
 Message Contents
 Message Structure
 Choosing Media
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 Personal Communication Channel/
Non-personal Communication Chan-
nel
 Selecting the Message Source
 Collecting Feedback
Advertising objective
It is a specific communication task to create
awareness within a specific target audience,
during a specific period of time.
Advertising Agency
A marketing services firm that assists com-
panies in planning, preparing, implementing,
and evaluating all or portions of their adver-
tising programs.
Types of Advertising Agencies
 Creative Agency
 Agency on Record (AOR) or Media
 Buying Houses
 Public Relation
 Off Line Advertising Agency
 Production Houses
 Strategic Planners
Direct Marketing
Direct communications with targeted indi-
vidual consumers to achieve an immediate
response and develop long lasting customer
relationships. This communications is car-
ried out through E-mail, Direct mail, Tele-
phone, Catalogues, Fax, etc.
Forms of Direct Marketing
 Face to Face Marketing
 Telemarketing
 Direct Mail Marketing
 Catalogue marketing
 Direct Response Television Marketing
 Kiosk Marketing
Goa Institute of Management
Goa Institute of Management
The event being exclusively for PGP1’s saw enthusiastic participation from the
batch with 31 teams participating in the intensive round 1. Only 8 teams made it
to the final round, which was Print-Ad analysis.
Team ‘Victorious Secret’ were the winners with a superb interpretation of the Ad.
Team ‘ Brand Pakodas’ came runners-up.
Special mention to team ‘ Neophytes’ which stood at 3rd position.

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Round 2: Ad Analysis
Print Ad : Garnier Fructis

Winning Team: Victorious Secret

Sudhanshu B
Sukrit S
Apoorva R
Prathiba P

Runners-Up: Brand Pakoda

Aditya S
Dinraj P
Deeksha A
Shishir S

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 Advertisement Analysis : Victorious Secret - Brandwich Winners
This Ad primarily rests on the idea of “Less is More”. The minimalistic setting of the ad where
the setting is only a picture of a man and a woman with a tagline communicates the message of
being a Unisex product. If the intention was to emphasise the product being a unisex one, then
the campaign was successful in communicating the same. First impression of the Ad is deceiv-
ing. The photographer plays an optical illusion where at first sight, it seems as if the hair is his
beard. On closer inspection, one realises that it is in fact a clever positioning of a woman in
front of the man, making it seem as if it is his beard whereas it is actually her hair.
There is a contrast bias which pulls the reader to take a closer look. This is accentuated by the
pale background and the dark clothes worn by the models. The “Rule of thirds” which says
that the subject must be positioned on one third of the canvas to draw attention instead of the
centre is used to complement the setting. In contrast to mainstream hair care product ads
where the model’s hair is shown in an exaggerated lustrous manner, the lighting used here is
natural. This makes the product more relatable to the “aam aadmi” in Switzerland. The place-
ment of the text is in line with the ad itself where it is all black accentuating the contrast effect.
In addition to this, the flow of the advertisement is not jarring to the eye and actually comple-
ments the movement of the eyes without effort on part of the reader. Hence, the blank spaces
are utilised efficiently, making the readers focus on the ad and not just be passive readers.
The message communicated is the versatility of the hair care product. The truth communicated
is not exaggerated by using an exclamation point. Rather, the use of a period makes it com-
plete. Whereas other brands focus on gender specific hair care products, the focus here is to
highlight the universal utility of the product. The idea that couples can go buy one shampoo –
shared by them, signified by the hooking of his hand on her back pockets, sends a message that
not all things need to be bought separately. The bald head and her hair together also emphasise
the hair itself and ensure that focus is not drawn away to anything else.
The Font used for the tagline is youth appealing and hence, hits the bullseye in ensuring that
the message of being cool and trendy youth can relate to it. The tattoos and the attire of the
models also appeal for the same. They are looking straight into the camera, as if looking direct-
ly into the eyes and making them look more confident. This sends a message of persuasion as
well.
In a nutshell, the minimalistic ad portrays a gender neutral product by a multinational company
whose tagline directly translates into “for all hair types”. This makes it more youth centric
who’s USP is confidence and being bold and different.

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 Advertisement Analysis : Brand Pakoda - Runners-up
Picture in this print advertisement creates a casual yet bold mood which we believe works very
well. The elements creating aforesaid mood are tattooed arms of the male character and pos-
ture in which he is standing with the female character. The picture is as lovely to look at as it is
clever. This ad intends to position itself as an unisex brand.
At the right bottom corner, the ad says “Fur jeden thartyp” - a German statement meaning for
all hair type, this ad intends to break the bounds of the conventional thinking that hair care
products are meant to be used by the females only. Advertisement has brilliantly used the nega-
tive space by keeping it plain and solid so as to draw an undivided attention towards the charac-
ters and brand’s tagline. The environment here is typical well-lit studio. Minimum usage of col-
our and focuses attention on hair. The Garnier logo looks like a blend of arial and Avant garde
gothic, apparently a custom font. The frutics font seems to be Friz quadrata TT.
The item being advertised here is garnier frutics which includes the product range of shampoo
and conditioner. In Indian culture it has started playing a key role as India has a rich demogra-
phy and consists of millions of youngsters who have become hair conscious lately. Other rea-
son being the increasing disposable income. These reasons make it important to focus on
building brand image among the youngsters, especially those with decision making power in
buying.
Political changes in India such as FDI in retail market, an advertisement like this can come
handy when it comes to attracting the youths where other international brands are competing
for the same market segment. Social challenges in India including stereotype thinking is also
addressed here and one of them is facial hair grooming.
The ad seems to be very clear and firm on STP i.e. segmentation, target market and position-
ing.

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Standing (L to R): Bhanu Nangru, Pratik Mandavia, Chinmay Datar
Sitting (L to R) : Paurnima Nalawade, Pratyay Mukhopadhyay, Prachi Jauhari
For any Feedbacks/Suggestions:
Write to us at mecca@gim.ac.in
Or Contact
Bhanu Nangru 9582582285
Chinmay Datar 9892516705
Paurnima Nalawade 9890620916
Prachi Jauhari 7409068202
Pratik Mandavia 9923229009
Pratyay Mukhopadhyay 9804674805

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Goa Institute of Management