AN INTRODUCTION

• The term ‘marketing mix’ first appeared in the article entitled ‘The Concept
of Marketing Mix’ (1948) written by theorist Neil Borden, a professor of
marketing and advertising at Harvard Business School.
• He claimed that he was inspired by the research of James W. Culliton who
described the role of marketing managers as ‘mixers of ingredients’.
• In 1960, Professor Jerome McCarthy (born in 1928) developed Borden’s
theory and kept four main points, namely the 4 P’s (Product, Price, Place
and Promotion) in his book Basic Marketing: A Managerial Approach.
• Marketing Mix basically is combination of various elements, which in their
totality, constitute marketing system of firm.
• According to Philip Kotler “Marketing Mix is the set of controllable variables
that the firm can use to influence the buyer’s response”.
 CONTD…
• The constituents of marketing mix are said as marketing mix elements.
Elements are also referred as decision variables.
• Marketing mix consists of mainly four elements, referred to as “4 Ps”
• Each element is also referred as mix, for example, product mix,
price mix, promotion mix, and place mix.
• Each mix contains a set of decisions.
Marketing
Mix
 Product
• In marketing, a product is anything that can be offered to a market that
might satisfy a want or need. It can be described as a bundle of benefits
which a marketer offers to the consumer for a price.
• Managing the product includes product planning, product development,
product design, product mix, product innovation, standardization and
branding.
• According to William J. Stanton “Product is a set of tangible and intangible
attributes including packaging, colour, price, manufacturer’s prestige,
retailer’s prestige and manufacturer’s and retailer’s services which buyer
may accept as offering satisfaction of wants and services”.
• According to Alderson, W., “Product is a bundle of utilities consisting of
various product features and accompanying services”
Steps in New Product Development
Levels of Product
 Levels of Product
1. Core Benefits: What does the product mean to the customer? For
example, a car offers generic benefits of convenience in traveling.
The core benefit is the fundamental need or wants that the customer
satisfies when he buys the product. For example, the core benefit of a
hotel is to provide somewhere to rest or sleep when away from home.
2. Basic/ Generic Product: The generic product is a basic version of the
product made up of only those features necessary for it to function. For
example, in a hotel, this could mean a bed, towels, a bathroom, a mirror,
and a wardrobe.
3. Expected Product: The expected product is the set of features that the
customers expect when they buy the product. Foe example, clean sheets,
some clean towels, Wi-fi, and a clean bathroom.
 Levels of Product
4.Augmented Product: The augmented product refers to any product
variations, extra features, or services that help differentiate the product from
its competitors. The marketer on his own augments the product, by adding
an extra facility or an extra feature to the product. For example, a free map
of the town in every room
5.Potential Product: The potential product includes all augmentations and
transformations the product might undergo in the future. In simple language,
this means that to continue to surprise and delight customers the product
must be augmented.
In the example of a hotel, this could mean a different gift placed in the room
each time a customer stays. It could be some chocolates on one occasion.
 Levels of Product
Example – Coca – Cola
1.Core Benefit - Quench thirst.
2.Generic Product - Burnt vanilla smelling, black, carbonated, and sweetened
fizzy drink.
3.Expected Product – Cold drink with taste.
4.Augmented Product - Diet-Coke with zero calories.
5.Potential Product - Running competitions. The prizes in these competitions
are often things that, “money can’t buy”, such as celebrity experiences. To
continue to delight customers over time the competition prizes change
frequently.
 Product Life Cycle
The life cycle of a product is associated with marketing and management
decisions within businesses, and all products go through five primary stages:
1.Development
2.Introduction
3.Growth
4.Maturity
5.Decline
Each stage has its costs, opportunities, and risks, and
individual products differ in how long they remain at any of the life
cycle stages.
Product Life Cycle
 Product Life Cycle
Development Stage
The product development stage is often referred to as “the valley of death.”
At this stage, costs are accumulating with no corresponding revenue.
Someproducts require years and large capital investment to
develop and then test their effectiveness.
Since risk is high, outside funding sources are limited.
While existing companies often fund research and development from
revenue generated by current products, in startup businesses, this stage is
generally funded by the entrepreneur from their own personal resources.
 Product Life Cycle

Introduction Stage
The product introduction stage is also called “market pioneering stage” This
stage requires huge investment
The sales revenue may begin to grow along with the market demand but the
rate of growth is slow
Profits may not be available due to low sales volume supplemented by
heavy production and distribution costs
Advertisement expenditure is also heavy
The product quality is very important to induce trial
 Product Life Cycle
Product Introduction Strategies
Marketing strategies used in introduction stages include:
Rapid Skimming - launching the product at a high price and high promotional
level
Slow Skimming - launching the product at a high price and low promotional
level
Rapid Penetration - launching the product at a low
price with significant promotion
Slow Penetration - launching the product at a low
price and minimal promotion
 Product Life Cycle

During the introduction stage, the firm aims to:

•Establish a clear brand identity
•Connect with the right partners to promote the products
•Set up consumer tests, or provide samples or trials to key target markets
•Pricethe product or service as high as it believes it
can sell it, and to reflect the quality level it is providing
•Being selective (target a set of consumers) to boost demand.
 Product Life Cycle

Growth Stage
In this stage, product is accepted by the consumers
The market demand increases and the size of market grows Sales increase
and so do the profits
Firm may adoptvarious sales promotional techniques at
consumer level, dealer level and sales force level
Advertisement is done on a large scale
Prices have to be fixed keeping in mind the competitors pricing
 Product Life Cycle
Product Growth Strategies
Marketing strategies used in the growth stage mainly aim to increase
profits. Some of the common strategies to try are:
• Improving product quality
• Adding new product features or support services to grow market
share
• Enter new markets segments
• Keep pricing as high as is reasonable to keep demand and profits high
• Increase distribution channels to cope with growing demand to product
• Shift the marketing messages from product awareness
preference
•
 Product Life Cycle

Maturity Stage
In this stage, sales turnover reach the highest level Demand reaches
saturation point
There is intense competition and lot of pressure on pricing
Profit margin may reduce
Additional expenditure may be incurred for product
modification and improvement
Generally the demand at this stage is stable
Special sales promotional measures may be adopted to stimulate demand
Reminder advertisement may be done at this stage
 Product Life Cycle
Product Maturity Strategies
When the firms sales are at its peak, its product/ service enters the
maturity stage.
The market is saturated, firms may have to find that they need to change the
marketing tactics to prolong the life cycle of products.
Common strategies that can help during this stage are:
•Market Modification - Entering new market segments,
redefining target markets, winning over competitor’s customers, converting
non-users
•Product Modification - Adjusting or improving the
product’s features, quality, pricing and differentiating it from other
products in the market.
 Product Life Cycle

Decline Stage
During this stage, the sales gradually come down. This happens generally
because of competitors products being introduced in the market or change in
technology etc.
The product no longer gets support in the market The firm has to further
drop the prices Expenditure on advertisement is almost negligible
Consumers feel that the existing product is not as per their wants
 Product Life Cycle
Product Decline Strategies
During this stage, sales and profits decline due to
changes in consumer preferences, technological advances and
alternatives on the market.
The strategies that can be adopted are:
•Reduce promotional expenditure on the products
•Reduce the number of distribution outlets that sell them
•Implement price cuts to get the customers to buy the product
•find another use for the product
•maintain the product and wait for competitors to withdraw
from the market first
•harvest the product or service before discontinuing it.
 Product Life Cycle
Another option is for the firm to discontinue the product from offering is
either:
•sell the brand to another business
•significantly reduce the price to get rid of all the inventory.
 Product Mix
Width: Number of different product lines carried by the company.
Length: Total number of items in the product mix of the company.
Depth: Assortment of size, color and models offered in each item of a
product line.
Consistency: It refers to the relationship of various product line either in
their end use, production requirement, distribution channel or other
way.
Product Mix of
HUL
 Packagin
g
• Packaging is the science, art, and technology of enclosing or protecting
products for distribution, storage, sale, and use.
• Packaging also refers to the process of design, evaluation, and
production of packages.
• It can be described as a coordinated system of preparing goods for
transport, warehousing, logistics, sale, and end use.
• Packaging can also differentiate one brand of product from another
brand.
• Because the product packaging can contain company names, logos and
the color scheme of the company, it helps consumers to identify the
product as it sits among the competitor's products on store shelves.
 Purpose of
Packaging
• Physical Distribution - The objects enclosed in the package may require
protection from, among other things, mechanical shock, vibration
temperature etc.
• Barrier Protection – Barrier from oxygen, water vapor,
dust, etc., is required for products.
• Containment – Small objects are grouped together in one package for
reasons of efficiency.
• Information Transmission – Packages and labels communicate
how to use, transport, recycle, or dispose of the package or product.
• Marketing – The packaging and labels can be used
by marketers to encourage potential buyers to purchase the product.
 Purpose of
Packaging
• Security –Packages can be made with improved tamper resistance to
deter tampering
• Convenience – Packages can have features that add convenience in
distribution, handling, stacking, display, sale, opening, reclosing, use,
dispensing, reuse, recycling, and ease of disposal.
• Portion control – Single serving or single dosage packaging has a
precise amount of contents to control usage.
• Facilitates Purchase Decision - Packaging may also contain ingredients
and nutritional information about the product
• Differentiation – A key role of packaging is differentiation
 Types of
Packaging
• Primary packaging is the material that first envelops the product and
holds it. This usually is the smallest unit of distribution or use and is the
package which is in direct contact with the contents.
• Secondary packaging is outside the primary packaging, perhaps used to
group primary packages together.
• Tertiary packaging is used for bulk handling, warehouse storage and
transport shipping.
 Packaging as a Marketing Tool (Silent
• Effective packaging can actuallySalesman)
help a company attract consumers to their
product.
• It can be the tool that sets apart their product in a vast sea of options that
the consumer has at their disposal.
• A good packaging can actually add to the perceived value of a product.
• Packaging is an integral marketing strategy to glamorize a product in order
to attract the consumer’s attention.
• Product packaging works as a silent salesman because
consumers often make a psychological connection with it.
• Packaging may appeal to consumers if it represents
something that’s important to them or symbolizes someone they
aspire to be.
• Shoppers who have environmental concerns may choose a product
 Labellin
g
Labelling is the display of label in a product.
A label contains information about a product on its container, packaging, or
the product itself.
Labelling is any written, electronic, or graphic
communications on the packaging or on a separate but associated label.
It also has warnings in it.
For e.g. in some products, it is written that the
products contain traces of nuts and should not be consumed by a
person who is allergic to nuts.
Labeling is also an important part of the brandof the
product and the company.
It helps the product stand out in the market, and identifies it as a part of a
particular brand.
 Importance of
Labelling is essential as ithelpsLabelling
to identify the product and also grab the
attention of a customer
It can be combined with packaging and can be
used bymarketers to encourage potential buyers to purchase the
product.
Labels communicate how to use, transport, recycle or dispose of the package
or product.
Labelling is also used to exaggerate the product.
This kind of labeling helps a viewer to differentiate the product from the rest
in the shelves of the market.
A person can find out about the ingredients of a product. This helps to spread
awareness among the customers about the item they are consuming and
labeling also helps to mention ingredients.
 Importance of
Labelling
Labeling is another very important factor in a product. It should show the
correct information about the product. This is all the more important in
products such as pharmaceuticals.
Labeling should also contain information relating to whether the product has
harmful chemicals, especially if it is a product that is meant for children.
 Product Guarantee and
Warrantythat a certain product is free from
A warranty is a promise by a manufacturer
defects and that it will perform optimally as required.
Warranty is thus a commitment from a manufacturer to its customers that if
the product breaks or if there is any problem in the product, the
manufacturer will provide free repair for the product.
But the manufacturer does not commit replacement. He commits only repair.
Warranty is generally given for products which are known to have frequent
breakdowns and are mechanical in nature - Example washing machines
A guarantee, though similar to a warranty, is an assurance by the
manufacturer that a certain product is of high quality and will withstand the
test of time.
 Product Guarantee and
Guarantees are given Warranty
for products which are sturdy and robust and are
unlikely to break down easily.
Although guarantees are also given for mechanical product, the mechanical
product should be high value or highly engineered. Example: Heavy
engineering products.
Both warranties and guarantees are used to give customers assurance that
they are purchasing quality products that are free from defects.
It can also be used to enhance a brand's reputation or serve as a competitive
differentiator for the consumer.
 Product Guarantee and
Example, When Amazon Kindle Warranty
was launched, it was a completely new
concept in the market and there was a 1 year guarantee on the product.
Kindle was known to have a soft screen and its screen breaking was a
problem. However, Kindle knew what percentage of their customers will
suffer from this problem. Due to the guarantee in place, many customers got
direct replacement of their Amazon Kindle therefore motivating more people
to adopt Kindle faster.
Mont Blanc has lifetime guarantee of their product. It is so confident about
its product, that if anything happens to the product which is not resolved by
the company, they offer free replacement to the end customer.
 Role of
Brands
The American Marketing Association defines a brand as “a name, term, sign,
symbol, or design, or a combination of them, intended to identify the goods
or services of one seller or group of sellers and to differentiate them from
those of competitors.” Lets see, in detail, the role of brands and scope of
branding.
Role of Brands
A brand is a product or service which help the organization differentiate their
products or services from others.
The role of brand is critical for the organization as it translates into loyalty
and higher margins in the long run.
 Role of
Brands
The differentiation of a brand can be:
Related to Product Performance. E.g. Gillette, Sony
•Functional
•Rational
•Tangible
Related to Brand Identity. E.g. Coca-Cola, Gucci, Tommy Hilfiger
•Symbolic
•Emotional
•Intangible
Building a brand helpsboth the consumer and the manufacturer
creating a win-win situation for both the parties
 Role of
Benefits of Brand to the Brands
Consumer
It helps to identify the source of manufacturer of the product and
simultaneously assigns a responsibility towards an organization for the
branded product.
Experience of customers with products of same brand help them to quickly
decide whether they will want to go with their purchase decision or not
making their decision easier.
Brands bring with them a certain level of quality assurance.
 Role of
Benefits of Brand to the Firm Brands
For a firm, the brand provides legal protection towards
unique features or aspects of the product.
Brand loyalty helps organization to retain their
existing customers when diversifying from one line of products to other.
It provides security of demand and creates barrier for other manufactures to
easily tap existing customers.
Firms can charge a premium for owning a brand boosting profit on every sale.
Product can be copied, but brand cannot. Once a brand is established, it’s the
invaluable asset for an organization.
A well established brand adds towards the overall value of
the firm while calculating its net worth.
 Scope of
A brand is a perceptual entity Branding
that is rooted
in reality but reflects the
perceptions and perhaps even the idiosyncrasies of consumers.
Brand is something that resides in the minds of
consumers. Therefore the scope of branding expands beyond
boundaries.
The concept of branding can be applied to:
•Physical Goods – e.g. Parle-G biscuits, Tata Tea, Maruti SX4
•Services – e.g. Indigo Airlines, ICICI Bank
•Stores – e.g. Future Retail, Central, 99 Store, Amazon
•Person – e.g. Sachin Tendulkar, Amitabh Bacchhan
•Place – e.g. Gujrat Tourism, Incredible India
•Organization – e.g. The Rolling Stones
 Marketing Mix - Price
Price is the amount charged for a product or service. It can be defined as the
economic value of product normally expressed in form of money.
It is one of the most important elements in the marketing mix. Fixing the
price of the product is a tricky job.
Many factors like demand for a product, cost involved, consumer’s ability to
pay, prices charged by competitors for similar products, government
restrictions etc. have to be kept in mind while fixing the price.
In fact, pricing is a very crucial decision area as it has its effect on demand for
the product and also on the profitability of the firm.
The price of product should be set in such a way that buyers can pay and
company can earn adequate profits.
 Marketing Mix - Price
In case of price-sensitive customers on one hand and the prestige-sensitive
customers on the other hand, the pricing decisions become vital in
marketing

Price mix includes the decisions regarding:

•Determining manufacturing (variable and fixed) costs the product
•Studying pricing policies and strategies of the close competitors
•Terms of credit to be allowed to customers.
••Deciding on level
Identifying and oranalyzing
margin ofvarious
profits relevant factors influencing pricing
decisions
• Pricing policies/strategies in different stages of product life cycle
 Marketing Mix - Price
The underlying factors that determine a company’s price decisions can be
categorized as internal factors and external factors:
Internal factors include company’s marketing objectives,
marketing mix strategy, and costs
External factors consist of market environment, demand, competition
 Pricing Strategies
Skimming Strategy: High price is charged for a product initially till the time
competitors allow and thereafter prices may be dropped. The idea is to
recover maximum money before the product or segment attracts more
competitors who will lower profits for all concerned. E.g. Apple mobile phone
Penetration Pricing: Price is set artificially low to gain market share quickly.
This is done when a new product is being launched. It is understood that
prices will be raised once the promotion period is over and market share
objectives are achieved. E.g. Reliance mobile phones
Demand Pricing: Also called demand-based pricing, or customer-based pricing.
This pricing method uses consumer demand of a product or service as the main
element of setting a price for a product or service. It is affected by consumer
demand, based on the perceived value of a product or service.
 Pricing Strategies
Psychological Pricing: This is a common pricing technique used by marketers.
A minor difference in prices is a huge difference for customers. For example,
an item whose price is listed as Rs. 199 may be seen as much cheaper than a
product or service priced at Rs. 200.
Competitive Pricing: Also called the strategic pricing, this is a method that
uses the prices set by competitors. More or less using competitor’s price is
considered to price its own products.
Cost-Plus Pricing: When setting the cost-plus price, the marketer takes the
cost of the raw materials and the cost of production and add them to the
overhead costs of a product or service. To this total, he may add a markup
percentage (profit margin) and this total sum is the cost-plus price.
 Pricing Strategies

Discount Pricing: A pricing strategy that offers products and services at a reduced
price. Discount prices can come in the form of seasonal discounts, loyalty rebates
etc.
Geographic Pricing: This pricing strategy is one where different prices are charged
in different geographical locations or markets for the t same product or service.
Price Bundling: This is a strategy used when two or more products or services are
priced together as a package, with a single price.
 Marketing Mix - Place
Goods are produced to be sold to the consumers, to be made available to the
consumers at a place where they can conveniently make purchase.
There is a chain of individuals and institutions like distributors, wholesalers
and retailers who constitute a firm’s distribution network (also called a
channel of distribution).
A channel of distribution is a path traced in the direct or indirect transfer of
ownership of a product as it moves from producers to consumers.
Channel is pipeline through which the goods flow on its way to the
consumers.
Distribution channels can be defined as the set of interdependent marketing
institutions participating in the marketing activities involved in the movement
the flow of goods or services from the primary producers to ultimate
consumers.
 Marketing Mix - Place
Direct Distribution Channel
In the direct channel method, the manufacturer directly sell the goods to the
customers.
There is no involvement of intermediaries in this distribution. Hence it is also
called “zero level distribution”.
The manufacturer distribute their products mainly by setting up retail outlets
and internet selling.
To adapt this method, the manufacturerhas to recruit field
sales team and the sales representatives are responsible for the sales.
The companies using direct distribution channel has higher
profits than the companies using indirect distribution channels.
E.g. Dell and travel agents are best examples for this.
 Marketing Mix - Place
Indirect Distribution Channel
Indirect distribution channel may be divided into 3 types according to the
usage of intermediaries or channel methods - one level, two level and three
level channel.
In one level channel manufacturer sells the goods directly to a retailer. Mostly
this channel is used by expensive watches and FMCG products.
In the two level channel, the manufacturer sells the goods to a wholesaler, the
wholesaler to a retailer and then to the customer. The wholesales purchases
large volumes from the manufacturer and then distribute them to retailers in
small volumes. This channel is mainly used to sell soaps, sugar, cigarette etc.
In the three level channel, one more level is added to two level channel in the
form of agents. This agents reduce the distance between the manufacturers
and wholesaler. This is suitable for very big companies like Toyota, Pepsi etc.
 Marketing Mix - Place
Place mix ensures that the right products can be made available to the right
consumers, in the right way, at the right time and at the right place, and in the
right form.
Channel Management decisions involve:
•Studying geographical concentration of customers
•Analyzing types of distribution channels and channel members
•Selecting suitable channel of distribution.
•Physical distribution including transportation, communication,
warehousing, inventory control, insurance, banking, etc.
•Developingand adopting logistics management for effective
distribution of goods.
 Marketing Mix - Place
Importance of Distribution Channels
•Persuading and influencing the prospective buyers to favor a certain
products and its maker [personal selling /sales promotion].
•The distribution channels can perform many functions like transportation,
storage, selling, scale of operation and advertising better than the
manufacturers.
•Large manufacturing companies can reduce their costs and time required to
reach their products with the help of distribution channels.
•Participate actively in the creation and establishment of market for a new
product.
•Providing feedback information
•Offering credit to retailers and consumers.
 Marketing Mix - Place
Types of Middlemen
1.Wholesalers: They are the people who buy in bulk from the producers and sell in
small quantities to the retailers.
2.Retailers: They are the people who buy in small quantities from the wholesalers
and sell to the ultimate consumers
3.Agents: They are the middlemen who do not take any title to goods. They render
all services required in marketing. They represent either the seller or the buyer
and receive commission for their work.
4.Brokers: Like agents, brokers also represent either the buyer or the seller. They
do not usually have physical control over the goods in which they deal. Example:
share brokers. They get ‘brokerage’ for their work.
5.Dealers: They are the business houses that resell goods.
6.Distributors: They are the same as wholesalers.
 Marketing Mix - Place
Functions of Middlemen
1.Middlemen are the furnishers of valuable informationto the
producers about consumer behaviour, the changes in tastes and
fashions, etc.
2.Middlemen allow the manufacturers to concentrate on
production only and relieve them from the botheration of marketing.
3.Middlemen render financial help to manufacturers.
4.They make available the goods according to the consumers’ needs,
fashion, tastes, etc.
5.Middlemen are an important link between the producers and consumers.
Middlemen play a very important role in the business activities and to maintain the
regular chain of supply of goods from the manufacturers to the ultimate
consumers. Thus the existence of the middlemen is very essential.
 Marketing Mix - Promotion
If the product is manufactured keeping the consumer needs in mind, is rightly
priced and made available at outlets convenient to them but the consumer is
not made aware about its price, features, availability etc., its marketing
effort may not be successful.
Promotion is an important ingredient of marketing mix as it refers to a
process of informing, persuading and influencing a consumer to make choice
of the product to be bought.
Promotion mix deals with those activities directed to increase sales volume.
It is also known as market communication.
Promotion mix involves all those efforts directed to increases
sales of products on a continuous basis.
It includes providing information to customers, inspiring
them to buy, and offering incentives.
 Marketing Mix - Promotion

Market promotion is concerned not only with raising sales volume, but it is
also a tool for establishing long-term relations with the parties involved and
is a matter of image, reputation, and goodwill for the company.
Promotion is done through means of personal selling, advertising, publicity
and sales promotion to provide information to prospective consumers about
the availability, characteristics and uses of a product.
It arouses potential consumer’s interest in the product, compare it with
competitors’ product and make choice.
 Integrated Marketing Communication
(IMC)
Integrated Marketing Communications refers to integrating all the methods
of brand promotion to promote a particular product or service among target
customers.
According to the American Marketing Association,” Integrated Marketing
Communication is a planning process designed to assure to that all brand
contacts received by a customer or prospect for a product, service, or an
organization are relevant to that person & consistent over time.”
“IMC is planning a systematic way in order to determine the most effective
and consistent message for appropriate target audiences.”
In IMC, all aspects of marketing communication work together for increased
sales and maximum cost effectiveness.
 Integrated Marketing Communication (IMC)
It is essential for organizations to promote their brands well among the end- users
not only to move ahead of competitors but also survive in the long run.
Brand promotion increases awareness of products and services and eventually
increases their sales, yielding high profits and revenue for the organization.
To understand integrated marketing communication, it is important to
understand the meaning of brand communication
Brand communication is an initiative taken by organizations to make their
products and services popular among the end-users.
Brand communication goes a long way in promoting products and services among
target consumers.
The process involves identifying individuals who are best suited to the purchase
of products or services (also called target consumers) and promoting the brand
among them through any one of the components of IMC.
 Components of Integrated Marketing Communication
1. Advertising (IMC)
Advertising is one of the most effective ways of brand promotion.
It helps organizations reach a wider audience within the shortest possible
time frame.
Advertisements in newspaper, television, Radio, billboards help end-users to
believe in the brand and also motivate them to buy the same and remain
loyal towards the brand.
Advertisements not only increase the consumption of a particular
product/service but also create brand awareness among customers.
Marketers need to ensure that the right message reaches the right customers
at the right time.
 Components of IMC
Advertising helps create and maintain brand equity.
Brand equity is an intangible asset that results from a favorable image,
impressions of differentiation, or consumer attachment to the company,
brand, or trademark.
Aaker defines brand equity as a set of assets and liabilities linked to a brand,
its name and symbol, that add value or subtract from the value provided by a
product or service to a firm and/or to that firms customers.
Brand equity translates into greater sales volume, and/or higher margins,
thus greater competitive advantage.
Brand equity is established and maintained through advertising that focuses
on image, product attributes, service, or other features of the company and
its products or services.
 Components of IMC
Aaker explains further that the assets and liabilities can be grouped under
five categories:
i)brand loyalty
ii)name awareness
iii)perceived quality
iv)brand associations in addition to perceived quality and
v)other proprietary brand assets such as
patents, trademarks and channel relationships.
 Components of Integrated Marketing Communication
2. Direct Marketing (IMC)
Direct marketing enables organizations to communicate directly with the
end- users.
Various tools for directmarketing are emails, text messages,
catalogues, brochures, promotional letters and so on.
Through direct marketing, messages reach end-users directly.
3. Sales Promotion
Brands (Products and services) can also be promoted through discount
coupons, loyalty clubs, membership coupons, incentives, lucrative
schemes, attractive packages for loyal customers, specially designed deals
and so on.
Brands can also be promoted effectively through newspaper inserts,
danglers, banners at the right place, glorifiers, wobblers etc.
 Components of Integrated Marketing Communication
4. Interactive/ Internet Marketing (IMC)
The newest growing global media channel for communicating and selling
directly to customers is Internet.
Internet has many marketing functions such as building demand, conducting
transactions, filling orders, providing customer service and it provides
advertisers a cost-effective way of reaching its customers
Internet has two key features:
Individualization: Internet users have control over the amount of
information they want to access and this leads advertisements and
promotions that are relevant to the consumers interactivity.
Interactivity: allows users to perceive whatever information they decide to
perceive and for a company it gives the ability for a two-way communication
 Components of Integrated Marketing Communication
5. Personal Selling (IMC)
Personal selling takes place when marketer or sales representative sells
products or services to clients.
Personal selling can be defined as “a two-way communication between a
potential buyer and a salesperson that is designed to accomplish at least
three tasks: identify the potential buyer’s needs, match those needs to one
or more of the firm’s products or services, convince the buyer to purchase
the product”
Personal selling is one of the most effective forms of promotion because it
allows the salesperson to approach a customer or a prospect the way they
see fit.
Personal selling goes a long way in strengthening the relationship between
the organization and the end-users.
 Components of Integrated Marketing Communication
6. Public Relation (IMC)
Public relations means “building good relations with the company’s various
publics by obtaining favorable publicity, building up a good corporate image,
and handling or heading off unfavorable rumours, stories and events”
Public Relations helps in:
•Introducing new products or services.
•Disseminate product features about existing products.
•Celebrating special events to promote the company, product or service.
•Strengthening an advertising campaign or establishing
relationships with important customers and prospects.
 Components of Integrated Marketing Communication
7. Sponsorship (IMC)
Sponsorship as a way to reach customers has been growing rapidly
American Marketing Association (AMA) defines sponsorship as “advertising
that seeks to establish a deeper association and integration between an
advertiser and a publisher, often involving coordinated beyond the-banner
placements”.
Through sponsorship it is possible to gain top-of-mind awareness (TOMA)
among customers.
The best place to gain brand awareness is during sports events due to the
large media coverage
Sponsorship can strengthen brand image by improving perceptions in order
to build, change or improve brand image
 Marketing Mix
Mr. Ram is the manager (product development) in a coffee processing
company “Modern India Coffee Ltd”. The company introduced innovative
products to cater to changing needs of its customers. Mr. Ram travelled
extensively to feel the pulse of different segments of coffee drinkers. He
himself was very fond of drinking coffee. His friends knew that Ram did not
prefer to drink coffee provided in five star hotels, because it was expensive
and it did not meet Rams expectation of quality. He gave up drinking coffee
during the tours.
Mr. Ram realized that the problem of not getting good coffee was a common
problem for coffee lovers. His scientific mind started to analyze this and
Modern India Coffee Ltd. Introduced a new product ‘coffee tablets’
developed by Mr. Ram. These tablets were so designed that one tablet
added to hot water would produce a cup of coffee without leaving any
residue in the cup.
 Marketing Mix
The Company decided to adopt introductory low price for these tablets and
planned a national launch. However, the chairman felt that necessary
marketing research should be undertaken before launching the product

Questions:
1.Suggest suitable marketing mix to launch the new coffee tablets
2.Explain the need for undertaking marketing research before launching the
coffee tablets