INTRODUCTION

🔹 1.1 What is Marketing?

Definition:
Marketing is the process of identifying, creating, communicating, and delivering value to customers and
managing relationships in ways that benefit the organization and its stakeholders.
– Kotler, Ch. 1

It is not about selling products, but about understanding what customers value and delivering it
consistently and profitably.

Peter Drucker:

“The purpose of business is to create a customer… the aim of marketing is to make selling
superfluous.”

Example:
Apple doesn't just sell phones — it creates an ecosystem (hardware + software + brand identity) that delivers
seamless, premium lifestyle value. As a result, customers sell themselves on the next upgrade.

🔹 1.2 Why Do We Need Marketing in This Case?

This part should:

● Briefly outline the business situation

● Identify a value gap or market challenge

● Hint at the importance of marketing intervention

Example opening:

The firm is facing stagnating sales despite strong past performance, signaling a potential
misalignment between its product offering and evolving customer needs. A structured marketing
approach is essential to reassess the target audience, reposition the product, and design a
refreshed value proposition.

🔹 1.3 5C Framework – Marketing Situation Analysis

Use the 5Cs to set the landscape before moving into STP or the 4Ps.

C Definition Strategic Role Example

 Customer Understand segments, Who buys, why, Spotify creates listening
needs, and behavior and what influences personas to hyper-
them? personalize playlists

Company Brand equity, core What unique value Apple = user experience +
competencies, internal can the firm design leadership
capabilities deliver?

Competitor Direct/indirect rivals, Who else is solving Zomato vs Swiggy vs

substitutes this need and how? Instamart

Collaborator Partners, distributors, Who helps us Amul depends on dairy co-

s suppliers deliver value? ops and cold chain partners

Context Macro environment What external EdTech boom due to

→ PESTEL trends may impact COVID, remote learning,
us? mobile penetration

🔹 1.4 PESTEL – Understanding Macro Environment (Part of Context)

Definition:
PESTEL helps analyze external macro-level trends that shape business opportunity and risk.

PESTEL Factor Description Example

Political Regulatory, tax, trade policy FSSAI rules for food labels affect FMCG
launches

Economic Inflation, income, interest Rising interest affects premium car loan
rates demand

Social Demographics, culture, Urban millennials seek convenience > price

lifestyles

Technological AI, digitization, mobile ChatGPT, automation, CRM AI tools

Environmental Sustainability, resource use Rise in organic food due to health + eco
focus

Legal Privacy, advertising laws, IP GDPR alters digital marketing strategies

🔹 1.2 The Role of Marketing: Creating, Capturing, and Sustaining Value

This is the anchor framework to structure the entire marketing strategy across the customer journey.

✅ Definition:

From Note on Marketing Strategy, marketing plays three central roles:

Role What It Means Key Tools

Create Identify what customers truly want and STP, customer insight, product
Value build a relevant solution design

Capture Monetize the value through pricing, 4Ps, CLV, pricing models
Value positioning, and delivery

Sustain Retain, grow, and expand long-term CRM, loyalty programs, brand
Value customer relationships equity, customer lifecycle

✅ Strategic Example: Spotify

Step Action

Create Builds playlists, algorithms, personalized audio experience (emotional + functional

value)

Capture Offers ad-free premium plans, pricing for students/family

Sustain Wrapped campaign, retention nudges, personalized notifications

✅ Strategic Example: Unacademy

Step Action

Create Delivers access to top educators (value = affordability + access)

Capture Subscription tiers, freemium to paid shift

Sustain Daily goals, streaks, mentorship add-ons, brand loyalty among UPSC
aspirants
✅ How to Use in the Exam

📍 Place this immediately after the “What is Marketing?” definition to show conceptual depth.

Marketing is not only about satisfying needs but about doing so profitably and sustainably.
This involves three core stages:

1. Creating value by identifying the right customer needs and aligning product-market fit,

2. Capturing value through effective pricing, positioning, and delivery, and

3. Sustaining value by retaining customers, building loyalty, and maximizing CLV.

The firm under study currently performs well on [e.g., creation], but lacks strong
mechanisms for [e.g., retention or upselling], making it vulnerable in the long run.

🔹 1.5 Sample Framing (Template for Writing)

In today’s dynamic environment, businesses must go beyond selling products and instead focus
on delivering meaningful value to customers.
Marketing plays a central role in identifying evolving needs, aligning internal capabilities, and
responding to competitive and environmental changes.
Using the 5C framework, we analyze the company's internal and external situation to diagnose its
market positioning and set the stage for value-driven marketing decisions.

✅ SECTION 2: PRODUCT EVALUATION – What Value Is Being Offered?

2.1 What Is a Product in Marketing?

Definition:
A product is anything offered to a market to satisfy a need or want — this includes goods, services,
experiences, events, people, places, organizations, and ideas.
– Kotler Ch. 11

A product is not just a physical object — it’s a bundle of value delivered through features,
branding, service, and customer experience.

2.2 Kotler’s 5 Product Levels (Ch. 13)

Level Definition Example

 Core Benefit The fundamental need Uber = “mobility on demand”
satisfied

Basic Product Physical or tangible version A smartphone with camera, processor,

screen

Expected Buyer expectations Battery life, customer service

Product

Augmented Added extras that create AppleCare+, fast charging, Face ID

Product differentiation

Potential Future possible Apple Vision Pro with immersive UI & AI

Product enhancements integration

📌 Use this model to evaluate: What level of value is the firm actually delivering?

2.3 Product Mix Strategy (Portfolio View)

Definition:
The product mix (or product assortment) is the complete set of products a company offers.

Term Definition Example

Width No. of product lines Tata Group: Tea, Cars, Consultancy

Length Total products across lines Tata Motors: Nexon, Harrier, Safari

Depth Variants in a product line Surf Excel: bar, powder, liquid, pods

Consistenc How closely related product Patanjali = Ayurveda-focused portfolio (high

y lines are consistency)

Strategic Use:

● Add depth to serve different segments

● Increase width to diversify

● Maintain consistency to strengthen brand

2.4 Product Life Cycle (PLC)

Definition:
The Product Life Cycle describes the evolution of a product through market stages:

Stage Characteristics Strategy

Introduction Low awareness, low sales, high Awareness campaigns, trials

investment

Growth Rapid uptake, competitors enter Differentiate, scale distribution

Maturity Saturation, sales peak Value-added services, market

modification

Decline Sales drop, tech change, alternatives Reposition, harvest, discontinue

emerge

Example:
Feature phones declined due to smartphones.
However, JioPhone attempted to reposition them using free data + KaiOS (requalification).

2.5 Breaking the PLC: Requalification and Value Rebirth (Living Twice)

Definition:
Contrary to PLC’s decline model, products can "live again" by being repositioned in new contexts — a
concept from Actor-Network Theory (ANT) and the Living Twice reading.

Term Meaning Example

Requalificatio Reframing the product’s value Egg Chair: Obsolete in the 1980s →
n revived as designer collectible

Interessement Building new interest by cultural, Gold Edition + artist collabs for Egg
symbolic framing Chair’s 50th anniversary

Implication:
A product’s lifecycle isn’t always linear. If the firm can reconstruct meaning (e.g., via nostalgia, art, scarcity), it
can re-enter the market with a new story.
2.6 Product Differentiation (Kotler Ch. 11)

Definition:
Product differentiation means crafting unique features or attributes that make your product stand out in the
customer’s eyes.

Type What It Means Example

Form & Features Shape, performance, special Dyson = sleek design + cyclone
features suction

Durability & Long-lasting and dependable Toyota = consistent engine

Reliability reliability

Style & Design Aesthetic appeal, ergonomics iPhone = minimalist premium feel

Customization Ability to personalize Nike ID lets you design your own

shoes

Service & Support Warranty, installation, after- Dell = next-day home service on
sales laptops

✅ How to Use in Exam:

📌 Write like this in your case answer:

The firm’s product currently delivers value at the [e.g., expected/augmented] level, but
differentiation has plateaued due to competition.
Using Kotler’s 5 product levels, the offering lacks a strong augmented feature to defend against
commoditization.
The Product Mix is narrow in width and high in consistency, suggesting brand strength but also
limited reach.
Moreover, while the product may be approaching maturity in its PLC, requalification through
symbolic repositioning (as seen in the Egg Chair case) could help it capture renewed demand
in a fresh segment.

✅ SECTION 3: CUSTOMER & MARKET EVALUATION – Who Is the Customer, and What Do
They Want?
3.0 Customer Value – The Foundation of Strategy

✅ What is Customer Value?

Definition:
Customer value is the perceived benefit a customer receives from a product or service relative to the total
cost of acquiring and using it.

Customer Value = Perceived Benefits – Total Costs

– Kotler Ch. 3, ACCV Sessions 3-4

Benefits can be:

● Functional (performance, reliability)

● Emotional (how it makes you feel)

● Social (status, group identity)

● Symbolic (self-expression)

● Experiential (joy in usage)

● Economic (money/time saved)

Costs include:

● Monetary cost

● Time/effort

● Risk and psychological barriers

🔹 Types of Customer Value (ACCV Class Notes)

Type Description Example

Functional Solves a task or problem Swiggy = food on time, hygienic

Emotional Evokes feeling Apple = sleek, premium pride

Social Builds identity in group Harley-Davidson = rebellious brotherhood

Symbolic Cultural/aspirational value Rolex = success, exclusivity

Economic Saves money or increases Zoom = low-cost meetings

ROI

Experiential Pleasure during use Netflix = binge-worthy UX

🔹 Customer Value Pyramid (Class Framework)

Level Description Example

Table Stakes Basic functional utility Clean rooms in OYO

Differentiators Unique advantages IKEA = design + flat-pack

Surprise & Delight Unexpected value Starbucks app rewards

Purpose-Driven Alignment with beliefs TOMS = social impact with every shoe

🔹 Value Map (Class Tool)

● X-Axis = Price (Low → High)

● Y-Axis = Perceived Value (Low → High)

Quadrant Interpretation Example

 High Value / Mid Price Sweet spot DMart

High Price / High Value Premium justified Starbucks

High Price / Low Value Danger zone Kingfisher Airlines (at collapse)

✅ Why Customer Value Comes Before STP

● You can’t segment until you know what kinds of value customers seek

● You can’t position until you know which value matters most to each segment

● You can’t grow CLV until you know what value drives retention

✅ How to Use in Exam

The firm’s current strategy lacks clarity in the specific customer value it delivers.
According to the Customer Value = Benefits − Costs framework, the brand offers only
functional value, while competitors layer in emotional and symbolic benefits.
Before STP decisions, a re-evaluation of what customers truly value is essential. The firm
should aim to move beyond table-stakes to build differentiators and delight.

3.1 STP Framework – Segmentation, Targeting, Positioning

🔹 Segmentation

Definition:
Dividing a broad market into smaller, homogeneous customer groups based on shared characteristics.
– Kotler Ch. 9

Basis Description Example

Geographic Region, city size ACs in North India summers

 Demographic Age, gender, income LIC = middle-aged male professionals

Psychographi Lifestyle, values Patagonia = eco-conscious outdoor

c lovers

Behavioral Usage, benefits, loyalty Starbucks = casual vs loyal customers

📌 Good segments must be:

● Measurable

● Substantial

● Accessible

● Differentiable

● Actionable

🔹 Targeting

Definition:
Choosing which segment(s) to serve profitably.

Strategy Description Example

Undifferentiated One offer for all Salt, soap

Differentiated Tailored offers for Dove Original vs Dove Men+Care

segments

Concentrated Focused on one niche Rolex = high net worth individuals

Micromarketing Personalized/local Spotify Wrapped, Google Maps ads by

 area

🔹 Positioning (Preview – detailed in Section 5)

Definition:
Crafting a unique, meaningful space in the customer’s mind vs. competitors.

“To [target], [brand] is the [frame of reference] that [point of difference] because [reason to
believe].”

Example:
“To budget travelers, OYO is the trusted, standardized, affordable hotel brand that delivers convenience
through its mobile app.”

3.2 CLV – Customer Lifetime Value

Definition:
The net profit a firm earns from a customer over the full duration of the relationship.
– CLV Reading, Kotler Ch. 3

Formula:
CLV = (Margin per Year × Retention Time) − Acquisition Cost

Segment Strategy Example

High CLV Retain, upgrade, delight HDFC Priority: lounge access, wealth mgmt

Low CLV Upsell or reduce service Telecom uses bots for prepaid customer
cost queries

Strategic Uses:

● Allocate resources by customer value

● Optimize acquisition cost

● Enhance customer lifecycle management

3.3 Customer Lifecycle (CLV-Linked)

Definition:
The stages a customer moves through from awareness → repeat usage → defection.

Stage Description Marketing Focus

Prospect Not yet a buyer Awareness & education

First-time Buyer First purchase Onboarding, smooth UX

Repeat Buyer Comes back Loyalty nudges, offers

Core Customer High frequency user Personalization, retention

Defector Stops buying Win-back or exit learning

Example:
Amazon uses behavior triggers (wish lists, bundles, Prime) to move users up the lifecycle →
increased CLV.

3.4 Buyer Behavior & DMU (Decision-Making Unit)

🔹 5-Stage Consumer Buying Process (Kotler Ch. 6)

Stage Description Example

Need Recognition Identify a problem Laptop too slow for Zoom calls

Info Search Seek solutions Google, YouTube reviews

Evaluation of Alternatives Compare options Dell vs HP vs MacBook

 Purchase Decision Make choice HP for best spec-price ratio

Post-purchase Behavior Satisfied or not? Writes review, tells friends, stays loyal

🔹 DMU – Roles in Complex Buying

Definition:
In multi-person purchase decisions, different roles influence the outcome.

Role Function Example (buying a car)

Initiator Starts the Son: “Let’s get a car”

process

Influencer Shapes decision Mom: “Safety is a must”

Decider Final say Dad: “We’ll buy a Honda”

Buyer Pays Family arranges financing

User Consumes Everyone drives the car

📌 Important in B2B and family buying contexts: Marketing must appeal to all relevant roles.

✅ Sample Write-up (Exam-Ready)

The firm’s current marketing efforts are product-centric, lacking focus on differentiated customer
value.
Using the Customer Value = Benefits – Costs framework, it becomes clear that the offering
emphasizes only functional value, while modern customers increasingly value emotional and
 symbolic dimensions as well.
A thorough STP analysis reveals that targeting all customers indiscriminately has diluted its
positioning. By focusing on a high-CLV segment — e.g., urban Gen Z who value sustainability +
ease — the firm can reposition its product to increase relevance.
Lifecycle analysis further reveals low retention after the first purchase, suggesting failure to move
customers into core loyalty tiers.
Lastly, understanding the DMU roles (especially influencers like parents in youth products) will
enable tailored messaging that addresses real decision-makers.

✅ SECTION 4: PRODUCT TESTING & MARKET LEARNING – Are We Aligned with Customer
Reality?

4.1 Lead User Research

(Session 12: Generating New Product Ideas – Lead User Research)

✅ Definition:

Lead users are customers who face needs earlier than the market and are motivated to innovate solutions
themselves.
– von Hippel model

They help firms spot unarticulated or future needs and co-create novel products.

✅ Steps (as taught in ACCV):

1. Identify future trends in the market

2. Find users already solving those problems

3. Observe or co-create with them

4. Convert insights into scalable offerings

✅ Example:

3M discovered new surgical tape design ideas by working with hospital nurses — not R&D engineers —
because nurses face issues first during surgeries (comfort, sweat, easy-tear, low skin damage).

Strategic Impact: Reduces innovation risk and leads to high market fit.

4.2 Concept Testing and Prototype Feedback

(Kotler Ch. 11 + ACCV Class Notes)

✅ Definition:

Evaluating customer responses to early-stage ideas, prototypes, or mock-ups before full product
development or launch.

Type Description Example

Concept Describe product to users, Zomato Gold tested on loyal customers

Testing gauge interest before full rollout

Prototype Offer MVP for trial Dropbox explained its idea via video before
Testing building actual product

Beta Testing Limited rollout to selected Gmail was “beta” for 5 years, collecting
users feedback

✅ Purpose:

● Reduce risk

● Save R&D waste

● Align better with customer expectations

● Generate pre-launch word of mouth

4.3 Co-constructive Value Creation

(From “Living Twice” + Actor-Network Theory)

✅ Definition:

Value is not just designed and delivered — it is co-constructed over time via networks of users, culture,
media, and usage context.

A product’s meaning evolves after launch — and firms must manage that meaning over time.

✅ Example:

The Egg Chair, initially a low-selling product, was repositioned decades later through:
 ● Artistic collaborations (symbolic framing)

● Cultural nostalgia (mid-century revival)

● Premium pricing & exclusivity (scarcity framing)

The chair’s requalification made it valuable again, despite being functionally unchanged.

4.4 Diffusion of Innovation – Market Adoption Curve

(Kotler + ACCV Class Notes)

✅ Definition:

New products are adopted in stages by different user groups over time.

Segment Traits Example

Innovators (2.5%) Tech-savvy, risk-taking People who pre-order iPhones or try

ChatGPT first

Early Adopters Opinion leaders Product reviewers, startup founders

(13.5%)

Early Majority (34%) Pragmatic users Mass market uptake once reviews are in

Late Majority (34%) Risk-averse, price- Parents adopting digital wallets

sensitive

Laggards (16%) Resistant to change People who still use keypad phones

📌 Your strategy must adapt across these phases:

● Innovators need novelty

● Early majority need evidence

 ● Late majority need value + ease

● Laggards may never convert

4.5 A/B Testing (Split Testing)

(Kotler Ch. 11 + Digital Strategy Add-ons)

✅ Definition:

A/B Testing is a controlled experiment where two (or more) variants (A and B) of a marketing element are
shown to random subsets of users to see which performs better on a chosen metric (e.g., CTR, conversion,
time spent).

Think of it as the “scientific method” for marketing decisions: test, measure, learn, optimize.

✅ Strategic Applications:

Use Case What’s Being Tested? Example

Web Design Button colors, CTA Amazon tested yellow vs orange "Buy Now"
placement buttons

Email Subject lines, Swiggy tested “Hey Abhinav, still hungry?” vs

Campaigns personalization generic header

Pricing Price sensitivity Netflix tested ₹149 vs ₹199 plan in India

UX Flow Checkout steps, layout Flipkart tested single vs multi-step checkout

Ad Copy Messaging hooks Zomato ran quirky vs formal copy on Instagram

stories

✅ How It Works:

1. Define a goal metric (e.g., conversion rate)

 2. Create Variant A (control) and Variant B (test)

3. Randomly assign users to A or B

4. Run for statistically valid sample size

5. Analyze results and implement winning variant

✅ Why It’s Powerful:

● Data-driven: Reduces gut-feel decisions

● Low-cost: Especially in digital interfaces

● Fast iteration: Learn quickly what works

● Improves UX & ROI: Small changes → big impact

✅ How to Use in Your ACCV Case Exam:

The firm can adopt A/B testing to optimize key digital touchpoints such as landing pages, app
layouts, or promotional campaigns.
For example, by testing two onboarding flows or price-promo combinations, the company can
identify what drives higher engagement or conversions, especially among early adopters.
This method is low-risk, scalable, and aligns with a learning-based marketing approach,
complementing qualitative insights from lead users.

✅ How to Use in the Exam

The firm’s product development process appears internally driven, lacking structured market
feedback loops.
Adopting a Lead User Research model could uncover unarticulated needs among advanced
users — especially in [e.g., rural consumers / hospital technicians / prosumers].
Through concept testing and rapid prototyping, the firm can reduce risk and increase fit.
Additionally, value is not fixed — using the “Living Twice” model, the firm can leverage cultural
framing and partnerships to requalify its offering.
Finally, mapping adoption via Diffusion of Innovation can help plan communication strategies
across the market journey — focusing on credibility for early adopters and simplicity for the late
majority.

✅ SECTION 5: POSITIONING – How Do We Create Meaning in the Customer’s Mind?

5.1 What is Positioning?

Definition:
Positioning is the act of designing the company’s offering and image to occupy a distinct and meaningful
place in the minds of the target customers.
– Kotler Ch. 10, ACCV Session 9–10

“You can’t be everything to everyone, but you must be something compelling to someone.”

5.2 Positioning Statement – Format

📌 Always start with a clear, structured positioning statement:

“To [target segment], [brand] is the [frame of reference] that [point of difference] because [reason
to believe].”

Example:

“To urban, budget-conscious travelers, OYO is the hotel brand that provides affordable,
standardized, reliable rooms via mobile booking because of its asset-light tech-driven
network.”

5.3 Points of Difference (POD) vs Points of Parity (POP)

Type Definition Example

Point of Difference Unique benefit your brand offers Volvo = safety; Apple = sleek
(POD) that others don’t design

Point of Parity Category must-haves to be All smartphones = touch screen,

(POP) considered in the game camera, apps

📌 A winning brand must have compelling PODs, but cannot ignore POPs. Too much difference with no parity
= confusion. Too much parity = commodity.

5.4 Aaker & Shansby’s 6 Positioning Strategies

These are classic approaches to carving out mind space:

 Type What It Focuses On Example

Attribute Highlighting a key product Sensodyne = relief from sensitivity

trait

Use/Application Specific context for use Red Bull = late-night study sessions

User Target customer identity L’Oréal Men Expert = “For men who care”

Product Class Compare across categories 7-Up = “Uncola” vs Coke

Price-Quality Signal luxury or value Rolex = ultra-premium; Amazon Basics =

value

Against Frame against a rival Avis = “We try harder” (vs Hertz)
Competitor

5.5 Perceptual Mapping (MDS – Multidimensional Scaling)

Definition:
A 2D or 3D visual tool used to map customer perceptions of brands based on chosen attributes.

📍 Steps:

1. Choose 2 axes (e.g., price vs quality, status vs reliability)

2. Plot competitors based on customer research

3. Spot gaps or overcrowding to inform repositioning

Example:

Attribute High-End Mass-Market

 Innovative Apple Xiaomi

Functional Lenovo Lava

📌 You don’t want to be stuck in the middle (no clear advantage). Find white space.

5.6 Positioning Bullseye (ACCV Session 10)

Definition:
A structured visual that prioritizes your core positioning message and layers of brand meaning.

Layer Description Example (Nike)

Center (Core POD) Most important benefit Empowerment through sport

Supporting PODs Additional, credible strengths Tech, durability, pro-athlete trust

POP Must-haves for category Athletic apparel, performance

Brand Personality Human traits Bold, inspirational

Emotional Hooks Deep feelings you evoke “Just Do It” → Confidence,

ambition

📌 Use the bullseye to align message, media, product, and pricing.

✅ How to Use in Exam

📍Here’s a sample answer style:

The firm currently lacks a differentiated positioning and risks being perceived as one among many.
Using the POD-POP framework, the brand should emphasize its unique tech-enabled
personalization (POD) while ensuring category expectations like quality and service
 reliability (POP) are met.
A perceptual map reveals that competitors cluster around low price-low emotion zones, while a
white space exists at mid-price, high experience — which this brand can own.
Based on Aaker’s framework, the brand should use a “user-based” positioning strategy
appealing to working professionals who value control, simplicity, and speed.
A refined positioning statement would be:
“To working millennials in Tier 1 cities, [Brand] is the productivity tool that offers fast, clean
interface and instant sync because it’s built by people who hate clutter as much as you do.”

✅ SECTION 6: MARKETING STRATEGY – Delivering and Communicating Customer Value

6.1 PRODUCT – What Are We Offering to Fulfill the Value Promise?

✅ Definition:

Product is the core value-delivery vehicle of the firm — including goods, services, features, design,
packaging, branding, and service components that satisfy customer needs.

The product must align with the customer value sought (functional, emotional, symbolic) and the
brand's positioning strategy.

✅ Product Strategy Dimensions (Kotler Ch. 11–13)

Element Meaning Strategic Choice Example

Product Line No. of items offered in Broad vs narrow Surf Excel has powder,
a category bar, liquid, pods

Depth Variants of a single Customization Starbucks: short, tall,

item grande, venti

Design & Physical aspects and Minimalist, futuristic, Dyson = futuristic design +
Features usability traditional functionality

Branding Symbols + emotional Functional or Amul = trust, consistency;

connection aspirational Nike = identity
 Packaging Communication + utility Premium or simple Paperboat: storytelling
through pouch design

Services Support, delivery, Value-adding vs basic Dell = next-day at-home

installation servicing

✅ Strategic Use in ACCV:

● If value is experiential, product must excel in design + storytelling (e.g., Chumbak)

● If value is functional, product should focus on usability and durability (e.g., Bosch tools)

● If targeting high-CLV customers, provide layered or tiered products (e.g., Gold, Premium, Elite plans)

✅ Sample Use in Case:

The current product offers functional value but lacks emotional or symbolic depth.
Introducing a customized premium tier, improving packaging, and aligning with the brand's
identity can elevate perceived value.
A tiered product mix (Lite, Standard, Premium) can cater to multiple segments discovered during
STP analysis.

6.2 PRICE – How Do We Capture the Value We Deliver?

✅ Definition:

Price is the monetary expression of the product’s value, and a key lever for capturing profits.
Pricing decisions affect perceptions, demand, segment targeting, and brand positioning.

✅ Pricing Strategies

Strategy Description Use Case Example

Skimming Start high, lower over New tech, aspirational iPhone launches at
time products ₹1,20,000
Penetration Start low to gain market Entering price- Jio SIM launch at ₹0
share sensitive market

Value-Based Set price based on When you solve a Zoom premium = “saves
perceived benefit high-pain point travel time”

Psychological Rs. 99 instead of 100 Retail/e-com Bata, Big Bazaar

Freemium/ Free entry, pay for SaaS / digital services Spotify, Canva, Netflix
Tiered premium

Dynamic Price changes with Travel, ride-hailing Uber surge pricing

demand

Bundling Combined offers Fast consumption + McDonald's meals

upsell

✅ Price Must Align With:

● Positioning: Premium price = luxury or elite perception

● Customer Value: High symbolic value → charge for identity, not just function

● Lifecycle Stage: Introductory → penetration; Maturity → bundle or skim

✅ Sample Use in Case:

Current pricing does not reflect the emotional and symbolic value embedded in the product.
The firm should shift to a value-based pricing model, anchored in its POD, while offering a
freemium entry to improve trials among lower CLV segments.

6.3 PLACE – How and Where Do Customers Access the Product?

✅ Definition:
Place includes all the distribution channels and touchpoints that help deliver the product/service to the
customer.

It ensures that the right product reaches the right customer at the right time and place, in line
with their shopping behavior and value expectations.

✅ Distribution Strategies

Type Definition When to Use Example

Direct Company → customer D2C, higher control Nike.com, Mamaearth

Indirect Company → wholesaler → For wide access Unilever uses retail

retailer → customer networks

Hybrid Both direct + indirect Broad reach + brand Samsung sells online +
control exclusive stores

Intensiv Maximum availability Low involvement, Coca-Cola, Dettol

e high volume

Selectiv Some outlets only Moderate control Puma, Nykaa Luxe

e

Exclusiv Only few premium outlets High-involvement, Rolex, Tesla

e luxury

✅ Omni-channel & Digital Trends:

● D2C brand websites (Mamaearth)

● Marketplaces (Amazon, Flipkart)

● Retail partnerships (Reliance Trends + Ajio)

 ● Experience centers (Apple Store, IKEA)

✅ Sample Use in Case:

The brand should shift from exclusive to selective distribution to widen access, while preserving
premium perception.
Digital-first placement, supported by flagship experience centers, can balance reach and brand
equity.

6.4 PROMOTION – How Will We Communicate Our Value Proposition?

✅ Definition:

Promotion involves all activities to communicate, persuade, and remind the target market about the product
and brand value.

✅ The 6Ms Framework (Kotler Ch. 13)

M Description Example

Market Who is the audience? Teen gamers for OnePlus Nord

Mission Objective: awareness, trial, loyalty? Zomato = reactivation of churned

users

Message What is the core idea? Nike: “Just Do It” = empowerment

Media Where to say it? Instagram, YouTube, ATL, BTL

Money Budget split 60% digital, 30% TV, 10% OOH

Measurement Success metrics NPS, reach, engagement, lift in sales

✅ Promotion Tools

Type Purpose Example

Advertising Mass visibility Tanishq Diwali campaign

Sales Promotion Immediate boost BOGO, Flash sales

Public Relations Build reputation Tata’s social messaging

Personal Selling High-ticket, B2B Salesforce, insurance

Digital / Influencer Reach Gen Z & Millennials Mamaearth with eco-conscious

creators

Content Marketing Brand education Zomato blog, Byju’s YouTube classes

✅ Push vs Pull Strategy

Strateg Focus Example

y

Push Incentivize resellers/distributors Pharma sales reps push to doctors

Pull Create consumer demand that Old Spice ads = viral, customers demand
pulls product stores to stock it

Use Hybrid: Push (channels), Pull (brand love)

✅ Sample Use in Case:

 The firm should adopt a pull-heavy strategy led by emotionally resonant influencer marketing
and content storytelling to appeal to young professionals.
Using the 6Ms, the Mission is to drive trial, the Message emphasizes freedom and control,
Media is Instagram Reels + YouTube Shorts, and success will be measured via click-through
and retention.

✅ SECTION 7: CONCLUSION & IMPROVEMENTS – What's Broken, and How Do We Fix It?

7.1 Diagnose the Breakdown in Value Strategy

Use the Create–Capture–Sustain framework to assess where the value chain is breaking.

Phase Question What to Look For Example

Create Are we solving a Poor segmentation, Product designed for Gen Z,

Value real need? ignored lead users but segment wasn’t validated

Capture Are we monetizing it Pricing doesn’t reflect Charging premium for a

Value properly? value, channel misfit commodity; wrong distribution

Sustain Can we retain and Weak onboarding, no No loyalty program = high

Value grow customers? CRM, low repeat use churn post first purchase

7.2 Where Did the Strategy Misalign?

Use a framework-based audit:

Area Possible Issue Diagnosis Method

STP Wrong segment, fuzzy Segment too broad or too small; no

targeting clarity on needs

Positioning Undifferentiated, confusing, No clear POD; overlaps with

 irrelevant competition

4Ps Product or Price mismatch Functional product with luxury pricing?

Customer CLV low due to drop-off Lack of post-purchase engagement, no

Lifecycle cross-sell

7.3 Common Strategic Gaps to Look For

Missed Element Implication Example

Wrong Value Focus Delivering functional value when Nokia focused on hardware,
customer seeks symbolic missed software experience

Misplaced Positioning Competing on price in a quality- Kingfisher Airlines: Premium

led category price, budget service

Product Not Tested Assumes needs instead of Google Glass = tech marvel,
with Real Users validating them social flop

CLV Not Considered No segmentation based on High churn due to shallow

profitability retention efforts

Push Strategy Used Customers aren’t influenced by Premium beauty brands need
in Pull Market channels alone brand pull, not kirana push

7.4 How to Fix It – Strategic Corrections

Fix Action
Reassess Customer Use surveys, social listening, lead users to re-define what value
Value matters most

Reposition the Product Frame new emotional or symbolic POD (Living Twice insight)

Redesign Marketing Mix Adjust product line, revise pricing strategy, focus promotion on
value story

Target High-CLV Build CRM flows, loyalty nudges, personalization for top 30%
Segments

Close the Lifecycle Retention onboarding, surprise & delight features, win-back
Gaps campaigns

✅ How to Use in the Exam (Sample Write-Up)

In conclusion, while the firm has a valuable offering, there is a clear breakdown in translating
customer insight into positioning and product delivery.
The core value that customers seek — emotional connection and simplicity — is missing from
both product design and communication strategy.
The firm has targeted broadly but failed to personalize its messaging or create differentiation.
Additionally, the pricing does not reflect the perceived value, and there’s no strategy to retain
customers beyond first-time use.
To fix this, the brand must:

● Revalidate customer segments and redefine value using lead user inputs

● Reposition using symbolic and emotional cues aligned with early adopters

● Adjust the 4Ps to support the new value proposition

● Invest in CLV-based retention strategy, turning one-time buyers into loyalists

This approach will create, capture, and sustain long-term value, ensuring alignment across
all touchpoints.