chapter 3: Enterprise marketing

• CBSE Class 12 Entrepreneurship exam
• Unit 03: Enterprise Marketing
• Key Information:
• Success Story Of Dhirubhai Ambani Ji
• Causes of success & failure of small business
• Entrepreneurial analysis of Dhirubhai Ambani
• Marketing mix-Types-4 p's,7p's-scope and Importance
• Branding process and brand management
• Consumer awareness and preferences
• Barriers to Entrepreneurship
• General Principles of treatment of Poisoning
• Marketing Mix:

  • Marketing mix is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market
  • According to Philip Kotler, a Marketing mix is the combination of 4 Ps as inputs which constitute the core of a company’s marketing system
• The 4 Ps of Marketing Mix:

  • Product: Refers to the item being sold and must deliver a minimum level of performance
  • Price: Cost to satisfy customer needs and wants
  • Place: Convenience for customers
  • Promotion: Communication strategies
• Product:

  • The product must meet customer needs and wants
  • Features must meet these needs and differentiate from competitors
  • Consider how and where the customer will use it, its appearance, size, color, branding, and differentiation
• Product Mix:

  • Includes branding, packaging, and labeling
• Branding:

  • A brand is a name, term, sign, symbol, or design intended to identify and differentiate goods or services from competitors
  • Branding is used to distinguish offerings from competitors
• Brand Components:

  • Brand Name: Vocalized part of a brand
  • Brand Mark: Recognizable but non-vocalized part of a brand
  • Trade Mark: Legal protection against use by other firms
• Qualities of a Good Brand:

  • Short, simple, and easy to pronounce
  • Noticeable, easy to recognize and remember
  • Pleasing
• Qualities of a good brand:

  • Short, simple and easy to pronounce
  • Noticeable, easy to recognize and remember
  • Pleasing and impressive when uttered
  • Should not be obscene, negative, offensive or vulgar
  • Adaptable to packaging, labelling requirements, different advertising media, and languages
  • Linked to the product and symbolically eye-catching
  • Contemporary and capable of being registered and legally protected
• Entrepreneur's perspective on brand name:

  • Individual brand name
  • Family brand name
  • Corporate names
  • Alpha-numeric names
• Individual brand name:

  Entrepreneur can choose distinct names for each product, promoting each on the basis of a separate brand name
• Family brand name / Umbrella branding:

  Uses a common or successful family name for several products, either the entrepreneur's name or the company's name may be used for all products
• Corporate names:

  Entrepreneur can utilize their corporate name or logo along with some brand names of individual products, for example, Godrej, Tata, Bajaj, etc.
• Alpha-numeric names:

  Entrepreneur has the option to brand products alpha-numerically, for example, SX4, Liv52, ANX Grindlay, i10, i20, etc.
• Logo:

  A symbol or small design adopted by an organization to identify its products
• Purpose of a logo:

  • Anchor of the company
  • Identity of the company
  • Relates to the product
  • Shortcut for advertising
  • Overall brand identity
• Price:

  • Refers to the value placed on a product
  • Represents the sum of values consumers are willing to exchange for the benefit of having or using the product
• Price depends upon:

  • Cost of production
  • Segment targeted
  • Ability of consumers to pay
  • Market forces of demand and supply
• 4 types of pricing strategies:

  • Cost plus pricing
  • Penetration pricing
  • Skimming pricing
  • Variable pricing
• Channels of distribution:

  • Path or route along which goods move from producers or manufacturers to ultimate consumers
  • Consists of producers, consumers, and various middlemen like wholesalers, selling agents, and retailers
• Factors considered for selection of channel:

  • Unit value of the product
  • Standardized products
  • Customized products
  • Perishables
  • Technical nature
• Number of buyers:

  • Large number of buyers leads to more middlemen
  • Small number of buyers leads to fewer middlemen
• Types of buyers:

  • General goods buyers result in more middlemen
  • Industrial buyers result in fewer middlemen
• Buying habits:

  • Large number of buyers lead to more middlemen
  • Small number of buyers lead to fewer middlemen
• Buying quantity:

  • Manufacturers should rely on middlemen if goods are bought in smaller quantities
• Size of market:

  • If the market area is scattered, the producer should take the help of middlemen
• Considerations related to manufacturer/company:

  • Goodwill: A manufacturer with a good reputation may not need middlemen
  • Desire to control the channel of distribution: Higher control by the manufacturer results in fewer middlemen
  • Financial strength: Strong financial strength leads to owned channels, while weak financial strength results in dependency on middlemen
• Considerations related to government:

  • Manufacturer of medicines should ensure distribution only through middlemen with relevant licenses
• Other considerations:

  • Cost: Select a distribution channel that is less costly
  • Availability: Choose an alternative distribution channel if the desired one is not available
  • Potential sales: Give weightage to a channel with a possibility of large sales