Marketing Management

Answer to Question 1:
Introduction:
According to Peter Drucker, “The aim of marketing is to make selling unnecessary”.
Marketing is the social and managerial process by which individuals and organizations
engage customers, build strong relationship and create value in order to capture value in
return.
Marketing is the “Process” which includes:
Understanding the market place and customer’s needs and wants and to fulfill this demand
organization offer products or services (sense and respond/outside in approach) to create
value for customer. In order to create value for customer marketing managers decide which
marketing strategy to follow i.e. the Production, Product, Selling, Marketing and Societal
concept. Once the strategy is decided then the marketing plan and program is made to
build customer relationship by transforming marketing strategy in to actions. Marketing
program consist of marketing tool which can be classified into 4 P’s i.e. Product, Price, Place
and Promotion. Customer relationship is built at many levels i.e. (Basic relationship and full
partnership) and tools used are frequency marketing programs, loyalty rewards, patronage
discounts, virtual customer engagements etc. Customer loyalty can be achieved if the
marketing manager is able to satisfy customers by providing the right value for the right
price and also aiming to deliver more than promise. This will help in delighting customer’s
fulfilling their expectation’s and create “customer evangelists”. Now, finally the process
includes capturing the value from customer in form of sales, market shares and profit.

Concept and Application:

Tesla is the electric car maker company from California, it is the youngest company, in its
about 18 years of existence so far, is leading the path towards realigning the global objective
of green transportation. From roadster to model 3 it has given some of the most efficient
Electronic cars. These are tread setters around the world as they are aesthetically designed,
powerful, feature packed and technologically advanced. Furthermore, the CEO of Tesla is
world renowned entrepreneur Elon Musk.
Tesla is worldwide famous for its 0$ marketing strategy, it only spends on its launches. Tesla
is now planning to launch its Model 3. As a marketing consultant The First and foremost
question that arises for product launch is what is the target market that will be served? And
second What is our Value proposition?
Target market:
The first Tesla car to be available in India will be the Model 3 Sedan. The Indian market is the
promising marketplace in the world for launching tesla model 3. The ideal market segment
according to economic factors for this car would be metro cities like Bangalore, Delhi,
Mumbai. It is important to develop suitable strategy which understand the consumer
behaviour and buying criteria. Target audience for tesla will be Middle class or Upper class
considering the premium prices of the cars.
Value proposition:
Tesla has opted for a long term strategy. One of the basic contributing factor have been
Tesla’s focus on its 100% electronic vehicles, whereas other automobile companies has
treated this factor as an option. After sales services of tesla are world class and they support
their customers to enhance their experience. This makes tesla more desirable as it is
contributing to the environmental goals while severing the societies need with up to date
advanced technologies.
Tesla has opted for “The marketing concept” under which organization design and work out
their marketing plan.
Integrated Marketing plan consist of “Marketing mix”, these are set of tool which company
will use to launch product in market.
Product: Tesla model 3 is the electronic vehicle which is selected to be launched in Indian
market as it is affordable and fully technology packed. Tesla Model 3 “Long Range” which
can belt out more than 500 km on a single charge. This EV is powered by dual electric
motors with nearly 450 horsepower. It is satisfying its mission and vision in facilitating the
world’s movement toward electric vehicles and sustainable energy.
Price: The market cost of Tesla cars is far higher than other premium models of ford, Toyota,
Honda and so forth. Yet the interest in these vehicles hasn’t diminished a bit. Innovation
and superior tech product design are significant factors for the high cost. Tesla has a to fix
the price for Model 3 which is suitable for marketing of the product in Indian market.
Place: Tesla does not have any franchises so it will work on a direct sales strategy in India
without appointing any dealers in the country. The EV maker will bank upon digital sales and
import cars via the completely built unit (CBU) route. Tesla may also open a manufacturing
unit in India for better market outreach.
Promotion: Tesla’s promotion strategy is mostly based on Social media. Viral marketing as it
can have biggest contribution in the company’s promotional communication with target
customers. Rely on promotion through customer experience. The organisation consistently
finds new ways to make media buzz. It creates crazy car test, launch events etc.
Tesla has always focused on PR and social media handling for the promotion of their
products. Elon Musk idealistic personality has attracted many followers and his social
platforms serves as the marketing ground for tesla. Every tweet of Elon musk creates a buzz
in media and stock exchange, this presence help tesla in promotion of the product. The
consumer’s involvement with digital and mobile technologies have made a fertile ground for
tesla to engage customers. Digital and Social media marketing involves using promotional
ads, events, conversation, games through websites, applications, emails, blogs, videos etc.
to involve customers anywhere, anytime through mobiles, laptops, tablets, tv etc.
Test Marketing:
Test Marketing is a stage in which product and the proposed marketing programme is tested
in real market. It costly and time taking procedure. Alternatively, organisation can also use
controlled test marketing or simulated test marketing. In order to save investment cost in
any unfavourable circumstances, Tesla Model 3 can apply any of these testing strategies
which will test whether the market we are entering or segment we are targeting with the
Place, Price or Promotion strategy that is proposed are apt for the organisation or not.
Commercialisation:
If tesla decides to launch Model 3 in India it also have to consider the following:
1. Timing i.e. whether the economy is down, competitor’s product launch date, any new
innovation to be incorporated etc.
2. Where i.e. whether to launch product in single location or multi location.

Conclusion:
As a marketing consultant we need to make sure that everyone inside the company,
partners and target customers know about our new product that is going to launch. This not
only create awareness but also increases sales and do publicity for an organization.

Source:

https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/etauto-
exclusive-knock-knock-this-is-tesla-here/79962040
https://www.isbr.in/blogs/tesla-case-study-by-abha-tiwari/
Marketing Management book NMIMS.
 Answer to Question 2:
Introduction:
Promotion is one of the marketing tool used by organisations or individuals to create
brand awareness, but the most importantly is used to produce organizational goals and
profits. The main motive of promotion is to have impact on the action of the people or
organizations of a target market. In terms of profit-orientation, the desired action for the
organisation would be that, the consumer to buy the product and have a positive image in
the minds of consumer for long lasting impact
Parle Private Limited is an Indian food company that owns the largest selling biscuit brands
in the world. They have a 150+ product range, 36 popular brands, and 21+ export
destinations. It has numerous successful products like Parle-G biscuit which has quality,
nutrition, and superior taste. It has come a long way in the last 8 decades. Parle Agro has
also been dominating the fruit-based drinks category in the country for over three decades.
It manufactures products into various segments which makes them unique and successful.
Parle Agro makes its entry into the dairy segment with a high quality and premium range of
flavored milk products – SMOODH. With disruption inborn in the company’s philosophy,
“SMOODH” becomes the only flavored milk beverage in the market globally, to be available
in 85 ml Tetra Pak cartons and priced at only Rs.10. With this offering, Parle Agro is aiming
for the rapid growth in the flavored milk market in India. The company will have
competitive advantage because of the brand and quality it provides in market over the long
period of time plus it will be easy for company to attract its evangelist customers.

Concept and Application:

The term Promotion Mix can be defined as the combination of different kinds of
promotional tools used by marketer to advertise and sell its products.
Promotion Mix comprises of different type of tools such as:
 Advertising.
 Sales Promotion.
 Personal Selling.
 Public Relation.
 Digital marketing.
 Packaging.
 Publicity.
Parle can use all the above promotion mix tools but the major tools which is recommended
for Parle to use as its promotion tool for SMOODH are:
Advertising:
This form of promotion is used to cover the large population at one time. It is the most
effective form of communication for the companies who are promoting the mass consumer
product. Through this Parle can create the awareness about SMOODH in rural as well as
urban market. Parle may consider for associating the brand with some celebrity to enhance
advertising effectiveness. Advertising consist of various platforms such as:

Television: It is one of the Oldest and far and wide reach media that is used to
communicate about the product in every household. Parle may create effective commercials
with the brand ambassador to influence the action and behaviour of consumer. TV
commercials should be targeted on sports channels, cartoon channels, music channels,
news channels and daily episode channels. This will ensure that all the target consumers are
being covered.

Radio: It is one of the most reached media in rural market and also been used in urban
market. “SMOODH” audio Commercials can increase brand awareness through radio as
these are cost effective and can be used for longer period of time to keep consumer
reminding about the product.

Print: Ads with picture of brand ambassador can be used to print in newspaper, banners,
hoardings, pamphlets etc. These are effective as large number of people see ads at the
selective places where company wants people to be aware of product.
Public Relations:
PR is a relatively cheap tool to expose SMOODH to potential clients and customers. PR is a
great tool to strengthen Parle’s corporate profile and to show that company is a great place
to work.
A good PR story about your company could be:
 Showcasing Positive news about SMOODH
 New flavours launched
 The relaunch of old products
 New employees
 Financial results
 Market trends
Sales Promotion:
Sales promotion is one of the most effective tools used to encourage sales. While it has the
potential of increasing sales, it is also beneficial for informing prospects about SMOODH in
the market or just to recapture old or lost customers. This can be done through: coupons,
product samples, buy one get one free etc.
Digital Marketing:
Digital marketing targets prospects and customers. Social media marketing, Email
marketing, Internet marketing are all types of digital marketing which must be used by
parle. They have become important in the promotional mix lately because people are using
internet far more than they used to a decade back. Parle may employ digital marketing for
SMOODH in order to engage customers in communication through emails, tweeter,
Facebook, Instagram, YouTube, e-commerce websites by special promotions, order
confirmations, customer inquiries, engaging in virtual events, games, competitions, debates
and paying celebrities to wear a specific line of clothing and posting these images on Twitter
or Instagram etc.
Packaging:
It is the most attractive promotion tool which Parle can use to attract consumer by alluring
them towards attractive and cost effective packaging. Consumer that see the product and
get attracted will definitely try the product and may become one of loyal customer. Parle
has used tetra packs for packaging which is great medium for the affective printing and
alluring customers.

Conclusion:
If above mention points are applied properly it will not only spread awareness for SMOODH
but also lead to the increase in demand. To ensure that each and every promotion tool is
applied effectively marketing manager must ensure that the content created is efficient
enough so that it can influencing customers and prospects and are attractive enough which
will give visual appeal to the tools used. The content should be relevant and should be same
all over different medias, this will ensure that consumers won’t get confuse and get
diverted. Parle should also keep a check on competitor’s strategy and promotional tools, not
to copy but to keep our selves prepared for the defending and winning strategy and tools.
These promotion tools are important but the managers must monitor and keep a control on
them for effective results.

Source:
https://www.adgully.com/parle-agro-set-to-reshape-the-indian-dairy-landscape-with-
smoodh-105712.html
https://opentextbc.ca/businessopenstax/chapter/promotion-strategy/
https://www.afaqs.com/news/advertising/parle-agro-launches-multi-channel-campaign-for-
dairy-product-smoodh
 Answer to Question 3 (a):
Introduction:
Company’s design Product or Service to meet the needs of the market. Some Product are of
such nature that appeal to all the section of the market. These products that appeals to
everyone are categorise under the mass marketing strategy. Certain products are
manufactured for a particular section of people. This section of people is known as the
“Target Audience” or “Target Market”. The marketing strategies focusing on the target
audience is known as a target marketing strategy.
To select the target audience or market company has to evaluate the market segments. For
this purpose, 3 factors are considered:
 Segment size and growth.
 Segment Structural attractiveness.
 Company Objective and Resources.
A company should only enter the segment in which they want to create superior customer
value and gets advantage over its competitors.
There are 4 type of target marketing strategies:
 Undifferentiated marketing:
It is also known as mass marketing because here marketer ignores the market
difference and target the whole market in one offer.
 Differentiated marketing:
It is also known as segmented marketing because here company targets different
market segments and design separate offer for each segment.
 Concentrated marketing:
It is also known as niche marketing because here company targets large market in
one or few smaller segments.
 Micro marketing:
It can be divided in to local marketing or individual marketing, here company tailor’s
product and program according to needs and wants of specific consumer and local
consumer segments.

Concept and Application:

Indian Market where Kia Motors has entered is a rapid growing market in terms of
technology. It is a young country with mature market. There are set of young age, tech savy
customers who would like to have product which will differentiates them from mass. With
the increasing income and upgradation in middle class Indian consumers are looking for
something new that will fit their life style and is unique. Since the entry in Indian market Kia
has prioritized digitalisation in order to enhance matchless customer experience.
The Digital showroom designed to show product portfolios are in 3D configuration. 3D
configuration zone in the facility enables the consume to customize and design their
favourite Kia car. It is a democratic solution designed keeping customer centricity in mind.
Kia motors is using Micro marketing strategy where it is tailoring the car’s and marketing
programs as per the taste and preference of young and tech savy Indian consumers. Kia
Motors is focusing on young aspirational income group who are choosing technology
advanced SUV cars with personalised features.
The digital transformation in Indian automotive industry and end to end digitalisation of its
sales management is providing Kia edge over other companies. Kia Motors with the use of
new and interactive technologies, Customized marketing, flexible manufacturing and robotic
production have combined to encourage mass customization.

Conclusion:
With the change in times, Kia motors have evolved to offer experience that are not only safe
and secure but also fulfil the emerging demands of Indian consumer. The aim of Kia Motors
is to attract consumers with personalised and innovative customer experience that
strengthens its unique brand identity in India.

Source:
http://www.indiannewsandtimes.com/2021/07/31/80731-kia-takes-customer-experience-
a-step-further-inaugurates-its-first-digital-showroom-in-india/
https://www.jigsawacademy.com/blogs/product-management/target-marketing-strategies/
 Answer to Question 3 (b):
Introduction:
Market Segmentation is a process used by organizations to divide target market in to
smaller groups based on their common needs and wants. An organization can effectively
and efficiently fulfill the need by offering different product to different market segments or
group having similar needs.
Since marketer cannot make each and every person happy therefore segmenting the market
is the effective growth strategy use by organization. There are 4 different ways to segment
the target market.
 Geographic: Geographic segmentation targets customers based on a predefined
geographic border. Differences in interests, values, and preferences differs
throughout cities, states, and countries.
 Demographic: Demographic segmentation divides a market through variables such
as age, gender, education level, family size, occupation, ethnicity, income, and more.
 Psychographic: Psychographic segmentation focuses on the intrinsic traits your
target customer possesses. Psychographic traits can range from values, personalities,
interests, attitudes, conscious and subconscious motivators, lifestyles, opinions, and
more.
 Behavioral: Behavioural Segmentation focuses on dividing markets by behaviours
and decision-making patterns such as knowledge, purchase, consumption, lifestyle,
and usage.
 Multi segment base: When organization combine geographical, demographic,
psychographic and behavioural variables and then form a small target market it is
known as multi segment base.

Concept and Application:

In my opinion, Kia Motor have use the multi base segmenting strategy to carter its
customers need. Kia has focused on variable such as:

Geographic:
Kia Motors have offered India a new orientation towards car making & designing as per the
want and preference of consumer. Selection of Indian market at this time is a right decision
as market is new for modern approach of car manufacturing. Kia also opted to open its
digital showroom is Prabhadevi Mumbai’s most crowded area to attract more footfalls
which will influence the decision of consumer on the purchase of product. In this Kia Motor
have used the strategy of selecting country, state and place for their product.

Demographics:
Kia Motors is offering the car which is more technologically advanced, customized and falls
in the price range of aspirational income group. India has young generation and with
upgrading income and consumption there is increase in the demand of SUV which will fit
their life style. Kia Motors has effectively and efficiently designed a strategy to full fill these
variable and be a perfect fit for India’s Age, income variable.

Psychographic:
Indian market is now becoming more digitalize and have fast moving life style in order to
carter the fast moving lifestyle of Indian consumer, Kia Motor has created all their sales
experience digitalized and also given the opportunity to consumer to design the car with
feature they want in their life style and suits their Personality.

Behavioral Segmentation:
Kia Motors through their 3d configuration facility shows the intricate details of the car which
helps Indian buyer to get idea what they are buying. With the help of digital catalogues, a
heritage wall, digital spec board and a media wall Kia Motors explains various benefits that
consume may get. This will allure the young and dynamic consumer’s and this strategy is
based on Occasion segmentation and benefit segmentation.

Conclusion:
Such a diversified segmentation strategy of Kia motors serves to be a powerful tool to
capture the Indian market and serve its target segment effectively and efficiently through
tailored market offerings and messages to their specific needs.

Source:
https://www.universitylabpartners.org/blog/key-types-market-segmentation-everything-
you-need-to-know
http://www.indiannewsandtimes.com/2021/07/31/80731-kia-takes-customer-experience-
a-step-further-inaugurates-its-first-digital-showroom-in-india/
Marketing Management book NMIMS