XII - entrepreneurship unit 03 mktng.pdf

CBSE-XII
ENTREPRENEURSHIP
CHAPTER 03
ENTERPRISE MARKETING
BY HENNA PUNJABI
1

XII-CBSE-ENTREPRENEURSHIP-BY HENNA PUNJABI
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CONTENTS OF CHAPTER
• Various marketing strategies used in a business
• Marketing Mix
• Branding, Packaging and Labeling
• Methods of Pricing
• Factors affecting the channels of distribution
• Types of sales strategy
• Tools of promotion : Modes of Advertising,
Personal selling, sales promotion, public relations,
techniques of sales promotion
4

PHILIP KOTLER
Philip Kotler (born May 27, 1931) is an
American marketing author, consultant, and
professor; the S. C. Johnson & Son Distinguished
Professor of International Marketing at
the Kellogg School of
Management at Northwestern University (1962-
2018). He gave the definition of marketing mix.
He is the author of over 80 books,
including Marketing Management, Principles
of Marketing, Kotler on Marketing, Marketing
Insights from A to Z, Marketing 4.0, etc.
5

MARKETING STRATEGY
• Marketing strategy is defined by David Aaker as :
“a process that can allow an organization to
concentrate its resources on the optimal
opportunities with the goals of increasing sales and
achieving a sustainable competitive advantage.”
- Formulation
- Evaluation
- Selection
- Goal achievement
6

WHAT DOES THE MARKETING
STRATEGY OF A COMPANY INCLUDE?
• Marketing strategy includes all basic and long-term activities in the field
of marketing that deal with the analysis of the strategic initial situation of
a company.
• It also includes the formulation, evaluation and selection of market-
oriented strategies and therefore contributes to the goals of the company
and its marketing objectives.
• A marketing strategy is composed of several strategies for growth as well
as interrelated components called the marketing mix. At the school level,
we will limit it to the components of marketing mix.
• The marketing mix refers to the ingredients or the tools on the variables
which the marketing mixes in order to interact with a particular market.
7

MARKETING MIX
• According to Philip Kotler, "A Marketing mix is the mixture of
controllable marketing variables that the firm uses to pursue
the sought level of sales in the target market.“
• WJ Stanton : Marketing mix is a term used to describe the
combination of 4 Ps as inputs which constitute the core of a
company’s marketing system.
8

• All are = imp.
9
MARKETING MIX – 4PS

MATCH THE COLUMNS
i. PRODUCT - (a) Communication
ii. PRICE - (b) Customer needs & wants
iii. PLACE - (c) Cost to satisfy
iv. PROMOTION - (d) Convenience
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11

PRODUCT
Product: This refers to the item actually being sold. The
product must deliver a minimum level of performances,
otherwise even the best work on the other elements of the
marketing mix won't do any good.
12

SUCCESSFUL PRODUCTS
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14
PRODUCT
FAILURES
14

THE PRODUCT WILL TYPICALLY LOOK INTO
THE FOLLOWING FACTORS :
• What does the customer want from the product/service?
What needs does it satisfy?
• What features does it have to meet these needs?
• Are there any features you've missed out?
• Are you including costly features that the customer won't
actually use?
• How and where will the customer use it?
• What does it look like? How will customers experience it?
• What size(s), color(s), and so on, should it be?
• What is it to be called?
• How is it branded?
• How is it differentiated from the competitors?
15

16
PRODUCT
MIX
Branding
Packaging
Labelling

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WHAT IS A BRAND ?
"BRANDR", Norwegian word meaning "to burn"
led to the origin of the word "Brand". In olden
days, the farmers used to put some kind of an
identification mark (using burning hot iron) on
the body of the livestock to distinguish their
possession from that of others.
Similarly, marketers started resorting to
branding in order to distinguish their offerings
from that of their competitors. Thus, a brand is
"a name, term, sign, symbol, or design or a
combination of them which is intended to
identify the goods or services of one seller or
group of sellers and to differentiate them from
those of the competitors."

19

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POPULAR BRAND NAMES (extra)
XEROX
COLGATE
EXECUTIVE BOND
KELLOGG’S
CADBURY
KAPIL SHARMA
MAGGI
DETTOL

WHAT IS BRANDING ?
• Definition :
• 'Branding' is a process, a tool, a strategy, an orientation whereby a
name, a sign, or a symbol etc. is given to a product by the
entrepreneur so as to differentiate his/her product from the rival
products.
• Once a brand name is established in the market, then it becomes
difficult to compete with it.
• 'Brand' is a comprehensive term.
• It is used to denote a name, term, sign, symbol, design or combination
of them to :
1) Identify the products of one firm, and
2) Differentiate them from those of the competitors.
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22

BRAND HAS 3 COMPONENTS
•BRAND NAME
•BRAND MARK
•TRADE MARK
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BRAND NAME
• that part of a brand which can be vocalized i.e.
can be spoken. It is like naming a newborn child.
• Mercedes, Woodland, Asian Paints, Pepsi, Maggie,
Uncle Chips etc.
24

BRAND MARK
A brand mark is that part of
a brand which can be
recognized but cannot be
vocalized i.e. is non-
utterable. It appears in the
form of a symbol, design or
distinct colour scheme. For
example: 'Girl’ of Amul,
'Maharaja' of Air India,
'Ronald' of McDonald etc.
25

TRADE MARK
• A brand or part of a brand
that is given legal protection
against its use by other firms
is called a trade mark
26

TRADE MARK (EXTRA)
27

TRADE MARK (EXTRA)
28

HOW TO REGISTER A TRADEMARK (EXTRA)
1. Decide on your unique brand name and logo.
2. Conduct an online search.
3. Fill-in the trademark application.
4. Filing for the brand name registration application.
5. Scrutinizing of your brand name registration application.
6. Publication in Indian Trade Mark Journals.
7. Receiving the trademark registration certificate
29

TYPES OF TRADEMARK (EXTRA)
1. Color mark
2. Smell mark
3. Shape mark
4. Music mark
5. Name mark
6. Symbol mark
7. Logo mark
8. Design mark
9. Service mark
30

QUALITIES OF A GOOD BRAND
1. Short, simple and easy to pronounce.
2. Noticeable, easy to recognize and remember.
3. Pleasing, impressive when uttered.
4. Neither obscene, negative, offensive or vulgar.
5. Adaptable to packaging, labelling requirements, to
different advertising media and languages.
6. Linked to product, symbolically eye catching.
7. Contemporary, capable of being registered and
protected legally.
31

ENTREPRENEUR'S PERSPECTIVE
ON BRAND NAME
1. Individual brand name
2. Family brand name
3. Corporate names
4. Alpha-numeric names
32

1. INDIVIDUAL BRAND NAME
Individual brand name Here
entrepreneur can choose
distinct names for each of his
offering, i.e. every product is
promoted on the basis of a
separate brand name.
33

FAMILY BRAND NAME /
UMBRELLA BRANDING
A common or successful family
name for their several products.
Either the entrepreneur's name or
the company's name may be used
for all the products.
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35

CORPORATE NAMES
Entrepreneur can
choose to utilize their
corporate name or
logo together with
some brand names of
individual products for
example, Godrej, Tata,
Bajaj, etc.
36

ALPHA-NUMERIC NAMES
Entrepreneur has
an option
available to brand
his/her products
alpha-numerically
too. For example,
SX4, Liv52, ANX
Grindlay, i10, i20,
etc.
37

WHAT IS A LOGO ?
A symbol or other small design adopted by an
organization to identify its products
38

PURPOSE OF A LOGO
• Anchor of company
• Identity of company
• Relates to product
• Shortcut for advertising
• Overall brand identity
39

BRAND MARK VS. LOGO
40

BRAND MARK VS. LOGO
41

TAGLINE
• Powerful messages to convey
enterprise’s goals, mission,
qualities, etc.
• Questions
• Exclamations
• Statements
• Examples
42

EXAMPLES OF TAGLINE
• LIC – Zindagi ke saath bhi, zindagi ke baad bhi.
• Mountain Dew : ‘Darr ke aage jeet hai’
• Mutual Funds : ‘Sahi Hai’
• Nike : ‘Just do it’
• LG – Life’s Good
• Apple : Think different
• Nestle : Good food, good life.
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PACKAGING
Packaging Packaging is
often the key element in
assisting, mainly consumer
goods companies, to
achieve a comparative
advantage. The critical
decisions that must be made
on the package are
concerned with the
functions, the product pack
will perform as well as with
the mix of packaging
components best able to
perform in different degrees,
the particular functions of the
packaging.
45

PACKING
VS.
PACKAGING
46

LABELLING
Labelling It is the display of information about a product
on its container, packaging, or the product itself.
47

INTELLECTUAL PROPERTY RIGHTS
IPR are legally recognised exclusive rights to
the creations of the mind. These rights are for
intangible properties
• Patents
• Copyrights
• Industrial Design
• Trademark
• Trade secret
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INTELLECTUAL PROPERTY RIGHTS
• Patents
• Copyright
• Industrial design
• Trademark TM
• Trade secret
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PATENTS
It grants an inventor the right to exclude others from making,
using, selling, offering to sell, and importing an invention for a
limited period of time, in exchange for the public disclosure of
the invention.
Inventions patentable :
• Art, Process, Method or Manner of manufacture
• Machine, Apparatus or other Articles
• Substances produced by Manufacturing
• Computer Software which has Technical application to Industry
or is used with Hardware Product Patent for
Food/Chemical/Medicines or Drugs
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PATENTS
51

COPYRIGHT ©
It gives the creator of
original work exclusive
rights to it, usually for a
limited time. It means
apply to a wide range of
creative, intellectual or
artistic forms or work. For
example, musical
composition, literary work
such as poems, plays etc.
52

INDUSTRIAL DESIGN
It protects the visual design
of objects that are not
purely utilitarian. It can be
a two or three dimensional
pattern used to produce a
product, industrial
commodity or handicraft.
E.g. Tarzan Car
53

TRADEMARK
It is a recognizable sign,
design or expression
which distinguished
products or services of
a particular trades from
the similar products or
services of other
traders.
54

TRADE SECRET
Any confidential business
information which
provides an enterprise a
competitive edge may
be considered a trade
secret. For example,
Coca-Cola formula.
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WHAT IS PRICE ?
It refers to the value that is put on a product. It
represents the sum of values that consumers are
willing to exchange for the benefit of having or using
the product.
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PRICE DEPENDS UPON :
• Cost of production
• Segment targeted
• Ability of consumers to pay
• Market forces of demand and supply
59

4 TYPES OF PRICING STRATEGIES
• Cost plus pricing
• Penetration pricing
• Skimming pricing
• Variable pricing
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61
PRICING STRATEGIES
Advantages :
- Covers expenditure
- Simple to calculate
- Escalation expenses
Disadvantages :
- Ignores future demand
- Ignores competitors’ prices
- Ignores opportunity cost and
cost of assets
COST PLUS PRICING
Cost of manufacturing + Profit = Price of product
Costs cover : raw material cost, admin costs,
employees’ cost, factory costs

62
PENETRATION PRICING
Advantages :
• Gains market share easily
• Develops goodwill
• Blocks competitors
• High stock turnover
Disadvantages :
• Expects price change
• Create image preconceptions
• Low profit margins
• Difficult to survive
• Lower price than market price
• Low in beginning
• Increases price after demand
increases
• E.g. Consumable products

63
CREAMING / SKIMMING
Advantages :
• Recovers costs
• Quality conscious
consumers
Disadvantages :
- If competitors lower price, it
backfires
- Against consumer rights
- Consumers wait till prices reduce
Higher price than market price
High beginning
Decreases price after reaching break-even
For early adoptors, high income class
E.g. iPhone, electronics, New Fashion

64
VARIABLE PRICING
Advantages :
• If products are not sold
on MRP then this
method is applicable
• Modest profit could be
earned
Disadvantages :
- Reduces consumer loyalty
- Affects goodwill of the seller
Different rates to different consumers
Based on bargaining power of consumers
Based on ability to pay of the consumer
Discount on bulk purchases (higher the
qty. lower the price)

65
MARKET SHARE
• PRICE
65

CHANNELS OF DISTRIBUTION
A channel of distribution or trade channel is defined as the
path or route along which goods move from producers or
manufacturers to ultimate consumers. This channel consists of
producers, consumers or users and various middlemen like
wholesalers, selling agents and retailers.
66

3 TYPES OF FLOWS
• Downward flow
• Upward flow
• Downward (new products) and
upward (product feedback)
67

PLACE MIX - DISTRIBUTION
• Producer → Customer (Direct)
• Producer → Retailer → Consumer (Indirect One Level)
• Producer → Wholesaler → Retailer → Consumer
(Indirect Two Level)
• Producer → Agent → Wholesaler → Retailer → Consumer
(Indirect Three Level)
68

FACTORS CONSIDERED FOR SELECTION
OF CHANNEL
69

FACTORS CONSIDERED FOR
SELECTION OF CHANNEL
(LONG OR SHORT)
(1) Considerations related to product :
(i) Unit value of product
(ii) Standardised products
(iii) Customised products
(iv) Perishables
(v) Technical nature
70

1. UNIT VALUE OF THE PRODUCT :
• Costly product = Small distribution channel
• Less costly product = Long distribution channel
71
2. STANDARDISED PRODUCTS :
• Standardized products = long distribution channels
• Customized products = short distribution channels

72
• Perishable products = short distribution channel
• Durable products = long distribution channel
3. PERISHABILITY :
• Technical product = directly to consumer (no middlemen)
4. TECHNICAL NATURE

(2) Considerations related to market
(i) Number of buyers
(ii) Types of buyers
(iii) Buying habits
(iv) Buying quantity
(v) Size of market
73

1. NUMBER OF BUYERS
• Large no. of buyers = More middlemen
• Small no. of buyers = Less middlemen
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2. TYPES OF BUYERS
• General goods buyers = More middlemen
• Industrial buyers = Less middlemen
3. BUYING HABITS
• Large no. of buyers = More middlemen
• Small no. of buyers = Less middlemen

75
4. BUYING QUANTITY
• It is useful for the manufacturer to rely on the services of
middlemen if the goods are bought in smaller quantity.
5. SIZE OF MARKET
• If the market area of the product is scattered fairly,
then the producer must take the help of middlemen.

(3) Considerations related to manufacturer / company
(i) Goodwill
(ii) Desire to control the channel of distribution
(iii) Financial strength
76

1. GOODWILL
• A manufacturer enjoying good reputation
need not depend on the middlemen as he can
open his own branches easily.
77
2. DESIRE TO CONTROL THE CHANNEL
OF DISTRIBUTION
• Higher control of manufacturer = less no. of middlemen

3. FINANCIAL STRENGTH
• Strong financial strength = owned channels
• Weak financial strength = dependency on middlemen
78

(4) Considerations related to government
79

(4) CONSIDERATIONS RELATED TO
GOVERNMENT
•Considerations related to the government
also affect the selection of channel of
distribution.
•The manufacturer of medicines should take
care that the distribution of his product takes
place only through such middlemen who
have the relevant license.
80

(5) Others :
(i) Cost
(ii) Availability
(iii) Potential sales
81

2. AVAILABILITY :
• Sometimes some other channel of distribution can be
selected if the desired one is not available.
82
1. COST :
• A manufacturer should select such a channel of distribution
which is less costly and also useful from other angles.
3. POSSIBILITIES OF SALES :
• Such a channel which has a possibility of large
sale should be given weightage.

PROMOTION
83

84

DIRECT & INDIRECT SALES STRATEGY
•Direct sales strategy, sales people attack the
competition head on when to the customer. They
talk about each feature of the competition’s
product and compare it to theirs.
•Indirect sales approaches apply more subtle
techniques by demonstrating features and benefits
not available with the competition’s products or
services without ever mentioning them by name.
85

86

PRODUCT PLACEMENT
Product placement is a form of
advertising in which branded
goods and services are featured in
a production that targets a large
audience.
87

TESTIMONIALS
A testimonial is a statement from a past
customer that describes how a product
or service helped them. Testimonials are
often written by the business based on
specific questions they ask satisfied
customers.
88

PROMOTION STRATEGY
•Above The Line (ATL)
•Below The Line (BTL)
•Through The Line (TTL)
89

90

91

92

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ABOVE THE LINE (ATL)
• They use mass media channels
• Advertising to large (mass) audience
• Conventional media like Print, TV, Newspaper
• Develops brand image
• Relatively expensive
• Difficult to measure the efficacy of advert
94

BELOW THE LINE (BTL)
• Specific and memorable
• Focused on target audience
• In control of organisation
• Increases sales
• Cost effective
• Easy to measure
95

THROUGH THE LINE (TTL)
• Combination of ATL and BTL
96

97

PROMOTION MIX
• Promotion mix refers to the combination of
promotional tools used by an organisation to reach
the targeted market.
• Different combinations used
• Market type, budget, objectives of promotion
✓Advertising
✓Public Relations
✓Sales promotion
✓Personal selling
98

ADVERTISING
Advertising is any paid form of non-personal
presentation and promotion of ideas, goods or
services by an identified sponsor.
99

OBJECTIVES OF ADVERTISING
• Create awareness
• Develop goodwill
• Offer specific products
• Attract customers
100

RULES OF ADVERTISING
• AIM
• TARGET
• MEDIA
• COMPETITORS
101

AIDA MODEL FOR BUYERS
102

COMMONLY USED MEDIA
• Stationery
• Window display
• Press advertising
• Radio
• Television
• Direct mail
• Outdoor (OOH)
• Ambient
• Cinema
• Point of sale
• Online
• Directory listings
103

STATIONARY
104
WINDOW DISPLAY

PRESS ADVERTISING
105

107
RADIO TELEVISION

DIRECT MAIL
108

OUTDOOR ADVERTISING /
OUT OF HOME (OOH) ADVERTISING

111

ONLINE
ADVERTISEMENTS
115

ONLINE ADVERTISEMENTS
116

117
DIRECTORY LISTINGS /
YELLOW PAGES

118
TRANSIT ADVERTISING

119
TRANSIT ADVERTISING

120
INFLIGHT ADVERTISEMENT
(transit advertising)

PERSONAL SELLING
It involves oral
presentation of message
in the form of
conversation with one or
more prospective
customers for the purpose
of making sales.
121

ROLE OF SALESPERSON
• Persuader
• Service provider
• Informant
122

SALES PROMOTION
Sale promotion consists of diverse collection of incentive
tools, mostly short-term, designed to stimulate quicker and /
or greater purchase of particular products / services by
consumers or the trade.
123

Sales
Promotion
Activities
Consumer
Promotion
Business
promotions
Sales force
Trade
promotions
124

CONSUMER PROMOTIONS
125
Point of Purchase
Point of Purchase
In-store demonstrations
Samples
Samples
Celebrity Endorsement

CONSUMER PROMOTIONS
126
On-pack offers

BUSINESS PROMOTIONS
• Seminars
• Workshops
• Conferences
• Trade Show (Exponential)
• Telemarketing and
Direct mail campaigns
• Newsletters
• Event Sponsorships
127

128
SPONSORING EVENTS LIKE YATCH
RACING AND OTHER SPORTS EVENTS

129
TRADE FAIRS, EXHIBITIONS &
EXPONENTIALS

TRADE PROMOTIONS
• Rewards to salesforce
• Incentives to reseller
• Competitions (sponsor)
• Corporate entertainment
• Bonus stock
130

SALES FORCE PROMOTIONS
•Commissions
•Competitions
131

PUBLIC RELATIONS
• It is a deliberate, planned and sustained effort to establish
and maintain mutual understanding between an
organisation and its stakeholders by obtaining favourable
publicity, building a good corporate image and handling or
heading off unfavourable rumours, stories and events.
132

STAKEHOLDERS
- Clients/customers
- Staff
- Shareholders
- Strategic partners
- Media
- Government
- Local community
- Financial institutions
- Community groups
133

TOOLS OF PUBLIC RELATIONS
• Media release
• Press Conference
• Product launch
• Grand opening
• Speeches &
Presentations
134

TOOLS OF PUBLIC RELATIONS
• Annual reports, brochures, newsletters,
magazines, Audio-visual presentations
• Community activities
• Sponsorships
135

THANK YOU
136

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