📘 Marketing Management

1 Product

✅ 1. Product: Meaning

A product is anything that can be offered to a market to satisfy a want or need, including
physical goods, services, experiences, or ideas.

Example: A smartphone, a Netflix subscription, a bank loan, or a yoga class — all are
products.

✅ 2. The Role of Product as a Market Offering

 Core of the marketing mix (4Ps) – Product, Price, Place, Promotion

 A good product creates value, differentiation, and customer satisfaction
 A product helps build a brand, positioning, and competitive advantage

✅ 3. Goods & Services Continuum

All offerings fall on a spectrum between pure goods and pure services:

Type Example
Pure Goods Soap, Toothpaste
Mixed Offer Car with service plan
Pure Services Tuition, Legal advice

Example: Buying a car (product) + free servicing (service) = mixed offering.

✅ 4. Classification of Consumer Products

Type Description Example

Convenience Frequently bought, low involvement Milk, Shampoo
Shopping Compared for price & quality Shoes, Electronics
Specialty Unique, brand-specific Rolex watch, Tesla
Unsought Not actively sought Life insurance, Funeral services
✅ 5. Classification of Industrial Products

Category Sub-type Example

Materials & Parts Raw materials, components Steel, Microchips
Capital Items Equipment, installations Machines, Buildings
Supplies & Services Maintenance, office supplies Cleaning service, Lubricants

✅ 6. Product Levels (According to Philip Kotler)

Level Meaning Example (Smartphone)

Core Benefit Basic need fulfilled Communication
Actual Product Design, features iPhone with camera, screen
Augmented Product Warranty, delivery 1-year warranty, doorstep delivery

✅ 7. The Product Hierarchy

Level Example (Nestlé)

Need Family Nutrition
Product Family Beverages
Product Class Hot drinks
Product Line Coffee
Product Type Instant coffee
Brand Nescafé Classic
Item 100g jar of Nescafé Classic

✅ 8. Product Systems and Mixes

 Product Mix: Entire range of products a company offers

Example: Nestlé – Maggi, Nescafé, KitKat, Milkmaid
 Product Line: A group of related products under one category
Example: Maggi Instant Noodles – Atta, Masala, Cup Noodles

✅ 9. Product Line Analysis

 Analyze sales, profits, market share, and growth

 Identify star products, laggards, and scope for innovation

✅ 10. Product Line Length

  Length: Total number of items in the product line
 Can be:
o Line Stretching (upward/downward): E.g., adding a luxury or budget version
o Line Filling: Adding similar price products to plug gaps

Example: Maruti Suzuki – Alto (budget), Celerio (mid), Ciaz (premium)

✅ 11. Customer Value Hierarchy

1. Core Value
2. Basic Product
3. Expected Product
4. Augmented Product
5. Potential Product

Example: In a hotel room, expected = clean bed; augmented = spa access; potential = AI
assistant in room.

🚀 New Product Development (NPD)

✅ 12. Need for New Products

 Market saturation
 Competitive pressure
 Technology change
 Customer needs evolve

✅ 13. Booz Allen & Hamilton Classification of New Products

Type Description Example

New-to-world First-time innovation iPhone (2007)
New product lines Company enters new category Apple Watch
Additions Line extensions New flavor of Lays chips
Improvements Better version Samsung Galaxy updates
Repositioning Same product, new segment Dettol – personal care
Cost reductions Cheaper version Budget variant of shampoo

✅ 14. New Product Development Process

 1. Idea Generation – Internal/External sources
2. Idea Screening – Filter good from bad ideas
3. Concept Development & Testing – Try ideas on target group
4. Business Analysis – Cost-benefit analysis
5. Product Development – Prototype, MVP
6. Test Marketing – Limited rollout
7. Commercialization – Full-scale launch

Example: Coca-Cola tests a new flavor in select cities before national rollout.

✅ 15. Sustainable Practices in Product Design

 Use of eco-friendly materials (e.g., bamboo toothbrush)

 Design for recycling
 Energy-efficient product designs
 Lower carbon footprint in production

Example: Tesla cars reduce pollution vs. petrol cars.

🏁 Go-to-Market Strategy (GTM)

Plan to launch a product, reach customers, and generate sales.

Includes:

 Target Market
 Pricing
 Channel partners (online/offline)
 Promotions
 Feedback loop

Example: Launching a health drink in gyms and wellness stores.

🔖 Branding

✅ 16. Branding: Concept & Definition

A brand is a name, term, sign, symbol, or combination that identifies the seller’s product and
differentiates it.
✅ 17. Commodity vs Brand

Commodity Brand
Generic product Differentiated
Low emotional connect Strong loyalty
Competes on price Can command premium

Example: Rice (commodity) vs India Gate Basmati (brand)

✅ 18. Product vs Brand

Product Brand
Tangible Intangible (perception)
Can be copied Unique identity
Short term Long-term relationship

Example: Soap (product) vs Dove (brand)

✅ 19. Brand Equity

The value of a brand in the consumer’s mind

Components:

 Brand awareness
 Perceived quality
 Brand associations
 Brand loyalty

Example: People pay more for Nike shoes due to strong brand equity.

📦 Packaging & Labeling

✅ 20. Meaning and Role

 Packaging: Activity of designing the container

 Labeling: Information printed on the package

🔄 Role: Protection, Attraction, Information, Differentiation

✅ 21. Types of Packaging

Type Example
Primary Toothpaste tube
Secondary Cardboard box of toothpaste
Tertiary Bulk carton for shipping

✅ 22. Sustainable Practices in Packaging & Labeling

 Recyclable and biodegradable packaging

 Minimal packaging to reduce waste
 Plant-based materials (corn starch wraps)
 QR codes instead of printed manuals

Example: Amazon’s “Frustration-Free Packaging”

Unit 2: Pricing

✅ 1. Pricing: Meaning

Pricing is the process of determining what a company will receive in exchange for its product or service.

💡 It directly affects revenue, profits, brand positioning, and market share.

Example: Apple sets a premium price to reflect high quality and status.

✅ 2. Role of Pricing in Marketing

 Only P in the 4Ps that generates revenue

 Helps position the brand (e.g., luxury vs. budget)
 Influences consumer perception of quality
 Important in competitive advantage

✅ 3. Importance of Pricing

 Determines profitability
 Drives demand and sales volume
  Key to market penetration or skimming strategy
 Vital in price-sensitive markets like FMCG

✅ 4. Factors Influencing Pricing Decisions

Factor Explanation Example

Cost of product Includes production, distribution, etc. ₹200 to make a shoe

Demand High demand can allow higher prices ACs in summer

Competition Pricing of similar products Pepsi vs. Coca-Cola

Consumer Behavior Perceived value by customers Luxury perfumes

Regulatory Factors Govt price caps Essential medicine prices

🛠 Setting the Price

✅ 5. Steps in Price Setting

i. Setting Pricing Objectives

Objective Example

Profit maximization New car model

Market share growth Jio's low prices

Survival Discount retailers during recession

Product quality leadership Mercedes-Benz pricing

ii. Determining Demand

 Understand price sensitivity

 Use surveys, historical sales, or experiments

Example: Airline companies use software to predict seat demand.

iii. Estimating Costs

 Fixed Costs: Rent, salaries

  Variable Costs: Raw materials, packaging
 Break-even analysis is done to ensure profitability

iv. Analyzing Competitor Pricing

 Benchmark prices in the same category

 Understand price points of rivals
Example: Samsung considers iPhone prices while launching phones

v. Selecting Pricing Method

Method Description Example

Cost-plus Add markup to cost Cost ₹100, Markup 20% = ₹120

Value-based Based on perceived value Luxury watches

Competition-based Price similar to rivals Cola brands

Psychological ₹99 instead of ₹100 Bata pricing

Bundle pricing Combine products McDonald's meal combo

vi. Selecting Final Price

 Consider objectives, competitors, demand, and psychological impact

 May offer incentives, discounts, or trade-offs

Adapting the Price

✅ 6. Types of Price Adaptation

Type Description Example

Geographical pricing Different regions Uber in metro vs tier-2 cities

Price discounts Temporary reductions 20% off Diwali sale

Promotional pricing Flash sales or festive Flipkart Big Billion Days

Differentiated pricing Varying price for segments Student discount on Spotify

Transfer pricing Between company divisions MNC billing from India to US office
 Type Description Example

Dynamic pricing Real-time based on demand Uber surge pricing, hotel bookings

Auction pricing Price through bidding eBay, Google Ads

Online pricing

 Free – ₹0 | Google Search |

 Premium – Paid version | YouTube Premium |
 Freemium – Free + upgrade | Canva, Spotify |

✅ 7. Token-Based Pricing

Users prepay using tokens or credits instead of cash.

Example: Tokens in gaming apps or Zomato Pro credits for food discounts.

🔁 Price Change

✅ 8. Initiating Price Changes

Reasons:

 Cost change
 New competitors
 Overstock clearance
 Product repositioning

Example: Amazon slashes prices for festive season

✅ 9. Responding to Competitor Price Changes

Strategies:

 Maintain price and increase value

 Lower price to match
 Improve product quality
 Launch promotions instead

Example: Domino’s slashing pizza prices after Pizza Hut offer

📊 Use of Big Data & Generative AI in Pricing

✅ 10. Big Data in Pricing

 Analyze purchase history, demand trends, customer segments

 Enables personalized pricing and real-time adjustments

Example: E-commerce sites adjusting price based on your browsing history

✅ 11. Generative AI in Pricing

 AI tools simulate pricing scenarios and outcomes

 Suggest optimal pricing using ML models
 Supports dynamic pricing, churn prediction, and bundle offers

Example: Amazon using AI to price millions of items daily

Unit 3: Place (Distribution)

✅ 1. Place: Meaning

Place refers to the distribution strategy — how a product or service is delivered from the
manufacturer to the final consumer.

It includes marketing channels, logistics, retailing, warehousing, and more.

Example: Coca-Cola uses distributors, retailers, vending machines to reach consumers

globally.

✅ 2. The Role of Marketing Channels

Marketing channels help to:

 Bridge time, place, and possession gaps between production and consumption.
 Ensure product availability to the right customer at the right time.
 Increase efficiency in distribution.

Example: Amazon ensures same-day delivery using logistics partners and warehouses.
✅ 3. Channel Functions & Flows

Function Example
Information Market feedback to producers
Promotion Offers & promotions by retailers
Contact Finding customers (salespersons)
Matching Customizing product to fit buyer needs
Negotiation Price agreements
Physical Distribution Transporting, warehousing
Financing Credit facilities by wholesalers
Risk Taking Retailer bears risk of unsold stock

✅ 4. Channel Levels

Level Description Example

0-Level Direct to customer Amul parlors
1-Level Producer → Retailer → Customer Apple Store
2-Level Producer → Wholesaler → Retailer → Customer FMCG (Surf Excel)
3-Level Includes agents/brokers Agricultural goods exports

🛠 Channel Design Decisions

✅ 5. Analyzing Customers’ Desired Service Output Levels

 Speed of delivery
 Product variety
 After-sales service
 Customization

Example: IKEA focuses on self-service with affordability.

✅ 6. Establishing Objectives & Constraints

 Coverage goals (intensive/selective/exclusive)

 Cost minimization
 Product nature
 Legal or regulatory constraints
✅ 7. Identifying & Evaluating Major Channel Alternatives

Channel Pros Cons

Direct High control, customer relationship Costly
Retailer High reach Less control
Wholesaler Bulk sale No direct customer contact

Example: Dell sells both directly and via retailers.

🛍 Channel Options

✅ 8. Wholesaling

Selling goods in large quantities to intermediaries, not end consumers.

Example: Metro Cash & Carry

✅ 9. Retailing

Selling directly to end consumers via shops, malls, or online.

Example: Reliance Trends, Amazon

✅ 10. Franchising

A legal agreement where a franchisee uses a brand/business model.

Example: McDonald's, KFC

✅ 11. Direct Marketing

Selling via mail, phone, catalogs, internet – without intermediaries.

Example: Nykaa, Mamaearth

✅ 12. Channels in International Markets

 Export agents
 Foreign distributors
 Licensing
 Online selling (Amazon Global)

🌐 Omnichannel & Hybrid Channel Options

✅ 13. Online vs Offline Interaction

Type Example
Online Amazon, Flipkart
Offline Big Bazaar, DMart

✅ 14. Omnichannel

Seamless integration of online and offline experiences.

Example: Croma lets you buy online & pick up in-store.

✅ 15. Hybrid Channel

Using multiple but distinct channels to reach different segments.

Example: Apple sells via website, retailers & telecom partners.

✅ 16. Phygital Channels

Physical + Digital experience.

Example: Lenskart – virtual try-on + in-store fitting.

✅ 17. Showrooming & Webrooming

 Term Meaning Example
Showrooming Visit store → Buy online Try at Croma → Buy on Amazon
Webrooming Browse online → Buy offline Research on Amazon → Buy at DMart

🚛 Market Logistics Decisions

✅ 18. Order Processing

Receiving, recording, and fulfilling customer orders.

Example: Flipkart updates delivery in real-time.

✅ 19. Warehousing

Storage of goods for timely availability.

Type Use
Public Shared use
Private Owned by firm

✅ 20. Customer Fulfillment Center (CFC)

Warehouse optimized for online order fulfillment.

Example: Amazon's FCs with robotic pickers.

✅ 21. Dark Stores

Retail outlet or warehouse not open to public, used for online order delivery.

Example: Zepto, Blinkit use dark stores for 10-min delivery.

✅ 22. Inventory & Logistics

 Inventory: Maintaining stock levels

 Logistics: Transporting goods to/from warehouses to customers
 Example: BigBasket uses cold chain logistics for vegetables.

✅ 23. Last-Mile Logistics

Final step of delivery – from warehouse to customer’s doorstep.

Example: Dunzo or Swiggy Instamart ensuring delivery within 15 minutes.

🔗 Role of IoT & Blockchain in Market Logistics

✅ 24. IoT (Internet of Things)

 Real-time tracking of goods

 Smart inventory control
 Route optimization

Example: DHL uses IoT sensors for tracking cargo temperatures.

✅ 25. Blockchain in Logistics

 Tamper-proof supply chain data

 Real-time visibility
 Reduces fraud

Example: Walmart uses blockchain for tracking food safety (e.g., origin of spinach).

Unit 4: Promotion

✅ 1. Promotion: Meaning

Promotion refers to all the activities a company undertakes to communicate and persuade
customers about its products, services, or brand to drive sales and build customer relationships.
 Example: Coca-Cola runs festive ads and influencer promotions to stay relevant.

✅ 2. Role of Marketing Communications in Marketing Effort

Marketing communication:

 Builds brand awareness

 Creates product interest
 Provides information
 Persuades to buy
 Reinforces the brand image

Example: Apple communicates innovation and premium value via sleek advertising.

📬 Communication Mix Elements

Also called Promotional Mix, includes:

Element Description Example

Advertising Paid, non-personal TV ads for Surf Excel
Sales Promotion Short-term incentives Coupons, BOGO offers
Personal Selling One-on-one selling Insurance agent
Public Relations Building favorable image CSR campaigns
Direct Marketing Targeted promotion SMS/email from Flipkart
Word of Mouth (WOM) Customer sharing experiences Influencer reviews

🎯 Advertising & Its 5Ms

✅ 3. 5Ms of Advertising

M Description Example
Mission What is the objective? Increase sales
Money Budget ₹5 Cr for Diwali ads
Message What to say? "Thanda Matlab Coca-Cola"
Media Where to say? TV, YouTube, Instagram
Measurement Was it successful? Track ROI, reach, clicks
💥 Other Promotion Elements

✅ 4. Sales Promotion

Short-term incentives to encourage purchases.

Example: Buy 1 Get 1 Free, Cashback offers on Paytm.

✅ 5. Personal Selling

Face-to-face interaction for product persuasion.

Example: Salesperson at a car showroom explaining features.

✅ 6. Public Relations (PR)

Building trust and good reputation without direct advertising.

Example: TATA’s disaster relief work shown in news.

✅ 7. Word of Mouth (WOM)

Free promotion through customer feedback.

Example: Zomato's customer sharing experience on Instagram.

✅ 8. Direct Marketing

Personalized communication via SMS, emails, WhatsApp.

Example: Amazon sending personalized discounts via app notifications.

🔄 Traditional to Digital Promotion

 Type Example
Contextual Marketing Google ads for shoes after searching “Nike”
Permission Marketing Customer opts in for email newsletters
Data-driven Marketing Netflix recommends shows based on viewing history

✅ AIDA → 5A Framework

AIDA Model Description

Attention Grab attention
Interest Create curiosity
Desire Build desire
Action Prompt to buy

➡ Transition to 5A Model (Kotler)

5A Model Meaning
Aware Customer is aware of product
Appeal Finds it appealing
Ask Searches for more info
Act Buys product
Advocate Recommends it

Example: ZARA gets customers from awareness to advocacy through strong brand stories and
good quality.

Integrated Marketing Communications (IMC)

IMC ensures all communication channels send a consistent and clear message across platforms.

Example: Cadbury uses same message (emotions + taste) across TV, digital, and packaging.

✅ Developing Effective Communication

📶 Communication Process

Sender → Encoding → Message → Medium → Decoding → Receiver → Feedback → Noise

✅ Steps to Develop Marketing Communication

1. Identifying Target Audience

Example: College students for energy drink
2. Determining Objectives
Awareness? Preference? Sales?
3. Designing Message
Rational (benefits) or Emotional (feelings)
4. Choosing Media
Online (Instagram), Offline (Newspaper), Hybrid
5. Selecting Message Source
Celebrity, influencer, brand voice
6. Collecting Feedback
Surveys, social media engagement, conversion data

⚖ Shaping the Overall Promotion Mix

✅ Promotional Mix Strategy

Strategy Use When Example

Push Encourage intermediaries Pharma companies persuade doctors
Pull Attract consumers directly Ads to generate demand (Pepsi)

Role of Generative AI in Promotion Decisions

Use Case Example

Ad copy creation AI writes Google ads
Image/video generation DALL·E generates product visuals
Customer segmentation AI groups customers for targeting
Personalization Chatbots suggest products
Campaign optimization AI suggests best performing content

Example: Nykaa uses AI to show personalized offers based on customer history.

Unit 5: Product Level Planning & Marketing Plan

Evaluation
✅ 1. Product Level Planning: Meaning

Product level planning is the process of creating a specific marketing plan for an individual
product or product line. It includes aligning marketing efforts with business objectives for that
specific product.

✍ Preparation of a Product-Level Marketing Plan

✅ 2. Nature of Marketing Plan

 Strategic Document
 Guides marketing decisions
 Aligns product goals with company goals
 Based on market research and business objectives

✅ 3. Contents of a Product-Level Marketing Plan

Section Description Example

1. Executive Summary of key goals,
Launch of new organic shampoo line
Summary strategies, budgets
2. Situation SWOT, market trends, Competitor: WOW Shampoo; Trend:
Analysis competitor analysis Eco-friendly
3. Marketing Target: Urban youth, Positioning:
Target market, positioning, 4Ps
Strategy Natural & affordable
Sales forecast, budget, break-
4. Financials ₹2 Cr budget, ₹5 Cr revenue target
even
5. Control KPIs, control methods Track sales monthly, monitor ROI

Evaluation & Control of Marketing Plans

✅ 4. Marketing Evaluation & Control: Concept

A process to monitor, measure, and improve the marketing performance against objectives.

✅ 5. Types of Marketing Control

 Type Purpose Example
Annual Plan Compare actual vs. planned
Monthly sales vs. target
Control performance
Profitability Profit from different products or
ROI from product A vs. B
Control segments
Efficiency
Resource utilization Ad spend effectiveness
Control
Long-term strategy alignment
Strategic Control Brand equity tracking
Comprehensive review of Independent marketing performance
Marketing Audit
strategy/process audit every year

Example:

For a new health drink brand:

 Annual Control checks if monthly sales meet targets

 Profitability Control checks if kids’ version is more profitable than adults’
 Marketing Audit done by a third-party consultant to assess brand image

🌐 Impact of Technology on Marketing Planning & Control

✅ 6. Connected Marketing Mix: The 4 C’s

C Meaning Example
Involving customers in product
Co-creation Lay’s “Do Us a Flavor” campaign
creation
Dynamic pricing & personalized Uber's surge pricing, Flipkart
Currency
offers recommendations
Communal
Building community engagement Nike Run Club app community
Activation
Two-way communication with
Conversation Zomato’s witty replies on Twitter
consumers

🚀 Agile Marketing in Planning & Control

✅ 7. Agile Marketing Practices

Agile marketing involves using flexible, fast, and data-driven marketing processes with
continuous testing and feedback.

Practice Explanation Example

Sprint PlanningWeekly/bi-weekly task planning Plan blog releases, social media bursts
Daily stand-ups to track
Scrum Meetings Quick team check-ins to adapt campaign
progress
Compare versions for better Testing two ad creatives for click-through
A/B Testing
results rates
Backlog
Prioritizing marketing tasks Rank ideas for festive campaigns
Grooming

Example: Nykaa runs quick marketing sprints to test different influencer reels and picks the
one with most engagement.

🕶 Immersive Marketing in Planning & Control

✅ 8. Immersive Marketing

Using technologies like AR/VR, 3D visualization, and gamification to create interactive

customer experiences.

Technique Example
Virtual Try-on Lenskart AR feature to try glasses
Gamified Apps Starbucks app rewards customers with stars
VR Product Experience IKEA Place app lets users see furniture in their room via AR

These immersive tools also help in evaluating customer preferences (data analytics) and refining
marketing strategies.