Unit -II

Entrepreneurship and Family Business-II

B.B.A. Semester-VI
Entrepreneurship and Intellectual Property Rights (IPR): Patents, Trademarks and
Copyrights
Intellectual Property Rights (IPR) are a critical component of entrepreneurship, as they play a
crucial role in protecting the innovations, products, and brands of businesses.
The laws regarding patents, trademarks, and copyrights vary between India and the United States.
In India, the main laws regarding patents, trademarks, and copyrights are the Patents Act of 1970,
the Trademarks Act of 1999, and the Copyright Act of 1957, respectively. These laws provide for
the registration and protection of patents, trademarks, and copyrights in India. The process for
obtaining a patent, trademark, or copyright in India involves filing an application, undergoing
examination, and, if approved, registering the intellectual property with the relevant government
agency.
In the United States, the main laws regarding patents, trademarks, and copyrights are the Patent
Act of 1952, the Lanham Act of 1946, and the Copyright Act of 1976, respectively. The United
States Patent and Trademark Office (USPTO) is the government agency responsible for the
administration and enforcement of patent and trademark laws in the United States. The United
States Copyright Office is responsible for the administration and enforcement of copyright laws in
the United States.
Both India and the United States have laws in place to protect the rights of intellectual property
owners. However, there are differences in the processes and procedures for obtaining and
protecting patents, trademarks, and copyrights in each country. Entrepreneurs should be aware of
the specific laws and regulations in their country to ensure the protection of their intellectual
property.
There are three main types of IPR: patents, trademarks, and copyrights.
1. Patents: A patent is a form of IPR that gives the owner exclusive rights to prevent others
from making, using, or selling an invention for a certain period of time. This provides the
entrepreneur with a competitive advantage and allows them to commercially exploit their
innovations.
2. Trademarks: A trademark is a symbol, word, or phrase that identifies a specific brand and
distinguishes it from other brands. Trademarks protect the reputation and goodwill of a
brand and are critical for establishing and maintaining a brand’s identity in the marketplace.
3. Copyrights: A copyright protects original works of authorship, such as literary, musical, and
artistic works, from being copied or used without the owner’s permission. Copyrights
provide entrepreneurs with exclusive rights to their creative works, allowing them to
monetize these works and ensure that their original ideas are not exploited by others.
By protecting their IPR, entrepreneurs can secure the value of their innovations, products, and
brands and increase their chances of success in the marketplace. It’s important for entrepreneurs
to understand the different types of IPR and how to secure and protect them to ensure the
longevity and success of their businesses.
Patents
The word “Patent” refers to a monopoly right over an invention. Not all inventions are patentable
nor it is essential to protect inventions solely through patent. The final product that results from an
invention may be protected through other forms of intellectual property rights. The statutory
definition of Patent under the Patent Act as a Patent for any invention granted under the Act.
The object of grant of Patent is to encourage research and development and innovation. The
Supreme Court in the case of Bishwanath Prasad Radhey Shyam v. Hindustan Metal Industries,
enumerated the object of Patent Law as under:
The subject of Patent Law is to encourage scientific research, new technology and industrial
progress. Grant of exclusive privilege to own, use or sell the method or the product patented for
limited period, stimulates new inventions of commercial utility. The price of the grant of monopoly
is the disclosure of the invention at the Patent Office, which after the expiry of the fixed period of
the monopoly passes into the public domain.
Rights in a Patent
Patent registrations confer on the rightful owner a right capable of protection under the Act i.e. the
right to exclude others from using the invention for a limited period. The monopoly over patented
right can be exercised by the owner for a period of 20 years after which it is open to exploitation by
others.
Patent confers the right to manufacture, use, offer for sale, sell or import the invention for the
prescribed period.
Time Period for which Patent is granted
Initially, the Act provided for a shorter-term pf protection for medicine or drug substances.
However, vide the Amendment Act of 2005 uniform period of 20 years was provided for all the
Patents. Thus, once the prescribed period of 20 years is over, then any person can exploit the
patented invention. Here it would be relevant to mention that similar to a trademark even the term
of a patent begins from the date of application of patent.
Requirements for Grant of Patent
1. The application for Patent shall be made at the Indian Patent Office.
2. Any person i.e. Indian or a Foreigner, individual, company or the Government can file a
Patent Application.
3. The person applying for Patent shall be the true and first inventor of the invention proposed
to be patented.
4. The patent application can also be made jointly.
5. The patent application shall primarily disclose the best method of performing the invention
known to the applicant for which he is entitled to claim protection.
6. The applicant shall also define the scope of invention.
7. The invention desired to be patented shall be- new, should involve an inventive step and
must be capable of industrial application.
8. A patent application can be made for a single invention only.
 9. An international application made under the PCT (Patent Co-operation Treaty) designating
India shall be deemed as an application made under the Patents Act with the priority date
accruing from the date of the international filing date accorded under the PCT.

Invention under the Patent Act

The Act under Section 2(1)(j) defines “invention” as a new product or process involving an
inventive step capable of industrial application.
The term “industrial application” refers to capable of industrial application in relation to an invention
means that the invention is capable of being made or used in an industry. One of the pre-requisite
of invention is that it should be new i.e. the invention proposed to be patented has not been in the
public domain or that it does not form part of the state of the art.
Under the Patent Act, both processes and products are entitled to qualify as inventions if they are
new, involve an inventive step and are capable of industrial application.
Requirements to Qualify as Invention
(i) The Invention must be new.
(ii) Invention must involve an inventive step.
(iii) The invention must be capable of industrial application or utility.
(iv) The invention shouldn’t come under the inventions which are not patentable under Section 3
and 4 of the Patent Act, 1970.
Non-patentable inventions are enumerated under Section 3 and 4 of the Patent Act. Such
inventions are delineated below:
 Any Invention which is frivolous or which claims anything obviously contrary to well
established natural laws is not patentable.
 Inventions which are contrary to public order or morality is not patentable.
 An idea or discovery cannot be a subject matter of a patent application.
 Inventions pertaining to known substances and known processes are not patentable i.e.
mere discovery of a new form of a known substance which does not enhance the known
efficacy of that substance is not patentable.
 An invention obtained through a mere admixture or arrangement is not patentable.
 A method of agriculture or horticulture cannot be subject matter of patent.
 A process involving medical treatment of human and animals or to increase their economic
value cannot be subject matter of a patent.
 Plants and animals in whole or in part are not patentable.
 A mathematical or business method or a computer program per se or algorithms is
excluded from patent protection.
 Matters that are subject matter of copyright protection like literary, dramatic, musical or
artistic work is not patentable.
 Any scheme or rule.
  Presentation of information
 Topography of integrated circuits.
 Traditional knowledge.
 Inventions relating to atomic energy.
Infringement of Patent
Infringement of Patent primarily refers to intrusion or violation of the rights of a Patentee against
which the Patentee has statutory rights under the Act.
The factors that are essential in determining infringement of a Patent are as under:
1. While determining infringement it has to be assessed whether the infringing activity fell
within the scope of the invention. Thus, the infringement has to be determined with regard
to what has been claimed as invention under the Patent Act by applying the principles or
standards of construction.
2. To determine whether the infringing activity violated any statutory rights conferred to the
Patentee under the Act. In this respect reference can be made to Section 48 of the Act
which enumerates the rights of the Patentee with respect to a product patent and process
patent.
3. To determine the infringer i.e. the person liable for the infringement.
4. To determine whether the infringing act fell within the acts which do not amount to
infringement under the Patents Act i.e. excluded acts of Government use, use of patented
product or process for experiment or research, import of medicine or drug by Government
and patents in foreign vessels and aircrafts.
Factors influencing value of patents
Potential for Producing Revenue and Profitability
Some patents possess value because they are directly responsible for added revenue. The
patented technology might be so important to the product that it drives additional purchases or
commands a premium price. Similarly, the subject of the patent might drive sales of related, but
unpatented, products. Examples include derivative sales (replacement parts, supplies, and
maintenance services) and convoyed sales (sales often made in conjunction with the patented
product).
Other patented technologies do not directly contribute to revenue, but might nonetheless be
valuable to the patent owner. For example, the patented technology might make it less expensive
to manufacture a product, directly reducing the cost of doing business and improving the owner’s
bottom line. Others represent an add-on technology that doesn’t directly increase revenue but
allows the patent owner to keep up with the feature offerings provided by competitors.
Patents may also be valuable to the patent owner in circumstances where there is not a clear
connection to profitability. Patents can, in some circumstances, also be used to great effect for
strictly defensive purposes. For example, the patent owner might rely on the patent to stake out a
technological realm within which the owner could potentially sue for infringement, but which may
also ward off competitors contemplating a lawsuit by raising the prospect that the owner would
institute a countersuit.
Years of patent life remaining. Most investors would not want a patent that has limited years of
patent protection (e.g. one that is more than 16 years old). However, a patent that was too recently
issued (e.g. within the past three years) is unlikely to have been litigated. The average age of
patents when they are litigated is three years old. It is better to acquire a patent after it has been
proven valid during litigation or has passed through the period when challenge to its validity is
most likely. As a sweeping generality, those patents that are most valuable are between 10 and 13
years old.
Number of inventors listed on a patent. A higher number of inventors listed on a patent
indicates that the patent is of higher quality than a patent that has a lower number of patent
inventors listed. The reason is that more intelligent scientists or engineers believed in and
dedicated their time to championing–the technology behind the patent. However, having numerous
inventors listed on a patent can be a source of vulnerability: if these inventors are deposed or
cross-examined when their patent’s validity is challenged, it becomes more likely that one of the
inventors will mention the existence of prior art. Also, failing to list an inventor on a patent risks
giving rise to litigation.
Anticipated licensing revenue. A standard procedure in patent valuation is determining the net
present value of royalties that will be received as a result of licensing the patent. One benefit of
developing a highly delineated model of projected royalties is that very specific factors can be
taken into account.
Ability to trigger sales of end products. Patents are most valuable when they cause consumers
to buy more of the product or newer versions of the product. For instance, some ten years ago
Intel and Microsoft were able to spark sales of personal computers when they introduced new
semiconductors and software. Consumers willingly retired perfectly good PCs as they raced to
embrace PCs with the greatest processing power and snazziest software. Similarly, patents that
increase the utility for existing or new users are generally very valuable. Examples of this can be
found in the patents behind the features on cell phones. Finally, patents are valued dearly when
the patented feature is a primary factor in the demand for the product. This is to say that the patent
is the product. Examples of this contention include the primary patents underpinning many
pharmaceuticals, Velcro and Post-It notes.
Ability to generate add-on sales. A licensee may derive important ancillary benefits associated
with selling products with embedded cutting-edge technologies. The benefits may be in the form of
greater traffic generation to its web-site, catalogs, or stores. A more direct example of generating
add-on sales would be a patent that improves on the functionality of ice skates could also
contribute to higher sales of protective gear. In such instances, the licensor should seek higher
licensing fees from the licensee since the licensee will enjoy spill-over benefits associated with
selling the cutting-edge technologies.
Ability to generate sales in new markets. Licensors typically seek lower royalty rates from
licensees who will sell the related products in a new market compared to the royalty rates they
seek from competitors who will challenge the licensors in their existing markets. While the royalties
per unit from the former licensee will be lower, there are two factors that are accretive to patent
value in this scenario. First, the total royalties generated by a licensee pioneering a new market
are likely to be substantial. Secondly, licensees penetrating new markets do not pose the profit
denigration issues for licensors that competing licensees represent.
Stage of development. Typically, the earlier in the commercialization stage a technology is, the
lower the licensing value. This is because there are significant risks in the technology never being
brought to the market and if the technology eventually becomes market-ready, this will only be
achieved at great expense. In the scenarios in which the licensee would have to make much of
this investment, the licensing fees would be less lucrative for the patentee.
Quality of law firm. Services such a Patent Cafe rate and rank law firms on their history of writing
patents that successfully sustain invalidity challenge. Patents drafted by law firms that score highly
on such rosters are generally of higher quality than patents that score poorly on such surveys.
Quality of patent examiner. Patents that are granted by patent examiners with longer tenures
and more impressive records of granting patents that successfully sustain invalidity challenge are
statistically more valuable than patents without such lineage.
Size of portfolio being sold. Our research indicates that each patent family will receive the
highest price when between 25 and 76 patent families are included in a patent portfolio. Portfolios
with more than 76 patent families are discounted because the buyers believe that the sellers are
purging a lot of their mediocre patents in the portfolio sale. On the other side of the spectrum,
selling too few patents yields a discounted value per patent because of the natural aversion that
patent managers have to seek significant funds (e.g. $3 million) from their Boards of Directors in
order to buy a small number of patents (e.g. two).
Trademarks, Features, Types, Laws
Trademark is a unique symbol, word, phrase, logo, design, or combination that identifies and
distinguishes the goods or services of a particular business from others in the market. It serves as
a form of intellectual property, providing legal protection against unauthorized use by others.
Trademarks play a crucial role in building brand identity, trust, and customer loyalty. Registered
trademarks offer exclusive rights to the owner, ensuring recognition and preventing confusion
among consumers. Examples include iconic logos like the Nike Swoosh or McDonald’s Golden
Arches. Trademarks are protected under specific laws, such as the Trademarks Act in many
countries.
Features of Trademark:
1. Distinctive Identity
Trademark provides a unique identity to a product or service, helping it stand out in the competitive
market. It enables customers to recognize the brand instantly through distinctive elements like
logos, words, symbols, or designs.
 Example: The Apple logo is instantly associated with innovation and quality.
2. Legal Protection
Trademarks are legally protected under trademark laws, such as the Trademarks Act in India or
the Lanham Act in the United States. Once registered, the owner has exclusive rights to use the
mark, and any unauthorized usage can be legally challenged.
 Example: Coca-Cola has exclusive rights to its iconic logo and brand name.
3. Commercial Value
A trademark adds significant commercial value to a business by enhancing brand recognition and
loyalty. Over time, it can become one of the most valuable assets of a company, contributing to
goodwill and financial worth.
  Example: The Nike Swoosh has become a symbol of excellence, adding immense value to
the brand.
4. Intangible Asset
A trademark is an intangible asset, meaning it holds no physical form but represents considerable
value for a business. It can be bought, sold, licensed, or franchised, providing an additional
revenue stream.
 Example: Licensing agreements for Disney characters generate significant revenue.
5. Global Recognition
Trademarks can be registered internationally, offering protection in multiple countries. This is
especially crucial for businesses operating in global markets, ensuring that their brand is protected
across borders.
 Example: McDonald’s Golden Arches are recognized worldwide.
6. Versatility
Trademarks can take various forms, including words, phrases, logos, sounds, shapes, and even
colors. This versatility allows businesses to create a unique and memorable brand identity that
resonates with their audience.
 Example: The “Intel Inside” jingle is a registered sound trademark.
7. Prevents Market Confusion
A trademark helps prevent confusion among consumers by clearly differentiating one brand from
another. This ensures that customers can identify and choose their preferred products or services
confidently.
 Example: The Starbucks logo ensures customers recognize its coffee shops over
competitors.
8. Long-Term Protection
Trademarks can be renewed indefinitely as long as they are in use. This ensures perpetual
protection and association with the brand, allowing businesses to maintain their identity over
generations.
 Example: The Coca-Cola trademark has been protected for over a century.
Types of Trademarks:
1. Product Marks
Product mark identifies the source of a product and distinguishes it from competitors. It is typically
used for goods rather than services. Product marks help establish a unique identity in the market
and build brand recognition.
 Example: The “Apple” logo for electronic devices.
2. Service Marks
Service marks are used to identify and distinguish services offered by a business rather than
tangible goods. They ensure that customers can associate quality and trust with a particular
service provider.
  Example: The “FedEx” logo for courier services.
3. Collective Marks
Collective marks are used by a group or association to represent the origin or quality of goods or
services provided by its members. These marks help indicate that the product or service adheres
to certain standards set by the group.
 Example: The “CA” mark used by Chartered Accountants in India.
4. Certification Marks
Certification marks signify that a product or service meets specific standards or criteria, such as
quality, origin, or manufacturing method. These marks are issued by authorized certifying
organizations and are not exclusive to any single manufacturer or service provider.
 Example: The “ISI” mark for products conforming to Indian Standards.
5. Trade Dress
Trade dress refers to the visual appearance of a product, including its packaging, shape, color, or
design, that makes it unique and distinguishable. It focuses on the overall look and feel rather than
specific logos or words.
 Example: The distinct shape of the Coca-Cola bottle.
6. Sound Marks
Sound marks are unique audio elements associated with a brand. These marks help in building
auditory recognition and are often used in advertisements, jingles, or as startup sounds for
devices.
 Example: The “Intel Inside” jingle.
7. Word Marks
A word mark protects the text or name of a brand, including its font style and arrangement. It
ensures that no other entity can use the specific words to identify similar products or services.
 Example: The name “Google.”
8. Logo Marks
Logo marks focus on the visual representation of a brand, such as a symbol, emblem, or graphical
element. It helps establish a strong visual identity for the brand.
 Example: The Nike “Swoosh.”
Laws of Trademark in India:
Trademarks in India are governed by a comprehensive legal framework designed to protect the
intellectual property rights of businesses and individuals. The Trademarks Act, 1999 is the
primary legislation, supported by various rules and international agreements.
1. Trademarks Act, 1999
This is the cornerstone of trademark protection in India, replacing the earlier Trade and
Merchandise Marks Act, 1958. It governs the registration, protection, and enforcement of
trademarks.
Key Provisions:
 Registration of Trademarks: Provides for the registration of distinctive marks for goods
and services.
 Types of Marks: Includes product marks, service marks, collective marks, certification
marks, and trade dress.
 Duration of Protection: A registered trademark is valid for 10 years and can be renewed
indefinitely.
 Infringement and Penalties: Defines trademark infringement and provides remedies,
including civil and criminal penalties.
2. Trademark Rules, 2017
These rules simplify and streamline the trademark registration process. They also specify the
classification of goods and services as per the Nice Classification System.
Key Features:
 Online filing of trademark applications.
 Concessions for small businesses and startups in filing fees.
 Clear guidelines for international trademark registration under the Madrid Protocol.
3. Intellectual Property Appellate Board (IPAB)
The IPAB (now merged with the High Court) handled disputes related to trademarks, including
appeals against decisions of the Registrar of Trademarks.
4. Trademark Registration Process
The registration process involves filing an application, examination, publication in the Trademarks
Journal, and eventual registration if no opposition is raised.
Steps:
1. Conducting a trademark search.
2. Filing the application with the Registrar of Trademarks.
3. Examination and objection (if any).
4. Publication for public opposition.
5. Certificate issuance upon successful registration.
5. Remedies for Infringement
Trademark infringement occurs when an unauthorized party uses a mark that is identical or
deceptively similar to a registered trademark. Remedies include:
 Civil Remedies: Injunctions, damages, and accounts of profits.
 Criminal Penalties: Fines and imprisonment for willful infringement.
6. International Protection
India is a member of the Madrid Protocol, allowing businesses to register trademarks
internationally through a single application.
Registration of Trade Marks
Trademarks are special unique signs that are used to identify goods or services from a certain
company. They can be designs, pictures, signs or even expressions. It is important because it
differentiates your products from the competitions. It can be associated with your brand or product.
Trademarks are classified as intellectual property and therefore is protected from infringement.
Trademarks and its rights are protected by the Trademark Act, 1999
To get the protection of trademark rights one has to register the trademark. It is important to
register your trademark because it prevents others from copying your mark and misrepresenting
other products with your mark. Trademarks help the customers to recognise the brand and the
brand value in one look such as the logo of a tick sign for Nike or a jumping wildcat for Puma etc.
Unlike patents, trademark does not have a definite limitation period. Where a patent expires in 20
years a trademark registration expires after 10 years of its registration, but unlike patents, a
trademark can be renewed again for another 10 years. This process can be indefinitely done,
meaning as long as you keep renewing the trademark it will not expire and will continue to be
under the protection of the Act.
Investing your time and money to build a particular brand and seeing the same brand name being
used by another, robbing you of your hard-earned brand reputation is not an agreeable state of
affairs. Many a time, trademark (TM) owners end up in protracted litigation because when the time
was right, they did not do trademark registration in India of their brand name. Trademark
registration process of the brand name is not a difficult task. A few simple steps, as explained
below and you would have the much-needed legal protection of your brand name registration in
India.
Trademarking a Brand Name
By trademarking your company’s name, you are protecting the brand, its reputation, and your
ideas, all of which you undoubtedly invested a great deal of blood, sweat, and tear working on.
And while the trademarking process itself will take time in all areas considered, nothing would be
worse than not protecting your brand and potentially be faced with an infringement lawsuit from a
larger company.
The process of brand trademark registration in India is now possible and convenient such that you
can trademark any one of the below things or even a combination of the following:
 Letter
 Word
 Number
 Phrase
 Graphics
 Logo
 Sound Mark
 Smell or a mix of colors
Trademark Registry
The trademark registry was established in 1940 then came the Trademark Act which was passed
in 1999. Currently, the trademark registry works as the operation or functional body of the Act. Or it
can also be said to be working side by side. As a functioning body, the trademark registry
implements all the rules and regulation of the trademark law in India.
The Head Office of the trademark registry is in Mumbai and it has branch offices in Delhi,
Ahmedabad, Chennai and Kolkata. When registering a trademark, it is registered under the
Trademark Act, 1999 and then the registry of trademarks registers it. In this process, the registry
will check whether the registering mark meets all the conditions of the Act before registering it.
Step 1: Trademark Search
Many entrepreneurs do not comprehend the importance of a TM search. Having a unique brand
name in mind is not good enough reason to avoid a TM search. TM search helps you to know if
there are similar trademarks available and it gives you a fair picture of where your trademark
stands, sometimes, it also gives you a forewarning of the possibility of trademark litigation. Why
waste your money in time-consuming trademark litigation later when you can choose to avoid it in
the first place?
Step 2: Filing Trademark Application
After you are sure that your chosen brand name or logo is not listed in the Trademark Registry
India, you can opt for registering the same. The first step is to file a trademark application at the
Trademark Registry India. Nowadays, filing is mostly done online. Once the application is filed, an
official receipt is immediately issued for future reference.
Step 3: Examination
After a trademark application is filed, it is examined by the examiner for any discrepancies. The
examination might take around 12-18 months. The examiner might accept the trademark
absolutely, conditionally or object.
If accepted unconditionally, the trademark gets published in the Trademark Journal. If not
accepted unconditionally, the conditions to be fulfilled or the objections would be mentioned in the
examination report and a month’s time would be given to fulfill the conditions or response to the
objections.
Once such response is accepted, the trademark is published in the Trademark Journal. If the
response is not accepted, one can request a hearing. If in the hearing, the examiner feels that the
trademark should be allowed registration, it proceeds for publication in the Trademark Journal.
Step 4: Publication
The step of publication is incorporated in the trademark registration process so that anyone who
objects to the registering of the trademark has the opportunity to oppose the same. If, after 3-4
months from publication there is no opposition, the trademark proceeds for registration. In case
there is opposition; there is a fair hearing and decision are given by the Registrar.
Step 5: Registration Certificate
Once the application proceeds for trademark registration, following publication in Trademark
Journal, a registration certificate under the seal of the Trademark Office is issued.
Step 6: Renewal
The trademark can be renewed perpetually after every 10 years. Hence, your logo or brand name
registration can be protected perpetually.
As seen from the above, trademark registration in India process does not require much effort. It is
a simple process but one which is nonetheless very important for brand name registration. We, at
Intepat, can help you with the entire process of registration without you worrying about deadlines
and responses. Hence, understand the power of your brand name registration and take steps in
protecting it today.
Copyright
Copyright refers to the legal right of the owner of intellectual property. In simpler terms, copyright is
the right to copy. This means that the original creators of products and anyone they give
authorization to are the only ones with the exclusive right to reproduce the work.
Copyright law gives creators of original material the exclusive right to further use and duplicate
that material for a given amount of time, at which point the copyrighted item becomes public
domain.
Copyright is a legal term describing ownership of control of the rights to the use and distribution of
certain works of creative expression, including books, video, movies, music and computer
programs. Historically, copyright law has been enacted to balance the desire of cultures to use and
reuse creative works (thus creating “derivative work”) against the desire of the creators of art,
literature, music and the like to monetize their work by controlling who can make and sell copies of
the work.
To strike this balance, the exclusivity of control is almost always restricted to a set period of years,
after which a copyright-protected work reverts to the public domain and may be freely used. Under
current law in the U.S., works created after Jan. 1, 1978, are afforded copyright protection for the
life of the author plus an additional 70 years. For anonymous, pseudonymous and corporate-
owned works, a copyright lasts 95 years from the year of its first publication or a term of 120 years
from the year of its creation, whichever expires first.
The copyright holder is often a company or corporation. If a work is created as a component of
employment (“work for hire”), then the copyright for the work defaults to the employer.
Copyright ownership is bounded by the territory of the jurisdiction in which it has been granted (a
copyright granted by the United States is valid only within that country, for example), as well by
certain specific exceptions. Much of international copyright law was brought into relative
conformity with the Berne Convention for the Protection of Literary and Artistic Works (usually
referred to as the Berne Convention), in 1886 (with numerous subsequent revisions over the
decades). The World Intellectual Property Organization Copyright Treaty (also known as the WIPO
Copyright Treaty or WCT) was adopted in 1996 to cover information technology and the internet,
elements not directly addressed in the Berne Convention.
Copyright duration and public domain
Both these laws, along with current copyright legislation worldwide, call for protected works to
enter the “public domain” after the copyright law’s stipulated term has passed. Works in the public
domain may be used, copied and distributed with no restrictions under copyright law.
Copyright exceptions and fair use
Not every expression of an idea may be copyright protected. Copyright doesn’t protect:
  Product names
 Titles of works (such as book titles)
 Names of businesses and organizations
 Pseudonyms, including computer hacker “nyms.”
 Slogans, catchphrases, mottos and short advertising phrases
 Lists of ingredients, such as on product labels or as used in recipes
Some things on this list, such as product names, may be afforded protection under trademark law.
Even when a work is protected under copyright law, the copyright law allows certain exceptions
where works may be used even when the copyright holder has otherwise restricted use. Some of
these exceptions are a matter of practicality, such as allowing libraries to make Braille copies of
books they own. In some cases, such as public venues that play music through jukeboxes, the
copyright owner is compelled by the law to grant the jukebox owner a license at a predetermined
fee. One important set of exceptions is the allowance for making backup copies of digital works
that are copyright protected. The most important exception is “fair use,” known in some other
international jurisdictions as “fair dealing.” Conceptually, fair use is a refinement of the basic
balance copyright strikes between author and civil interests. It is in the public’s interest to have
access to critical reviews of works, and in considering these works, the critic may include short
excerpts of a work in order illustrate a point being made. Copyright laws also generally protect
works of parody from copyright infringement claims, as is the use of works for educational uses.
The Copyright Act, 1957, along with the Copyright Rules, 1958, is the governing law for copyright
protection in India. Copyright laws serve to create property rights for certain kinds of intellectual
property, generally called works of authorship. Copyright laws protect the legal rights of the creator
of an ‘original work’ by preventing others from reproducing the work in any other way.
Kinds of Intellectual Property:
Modern copyright laws serve to protect a variety of intellectual property ranging from songs and
jingles to computer software and proprietary databases. The intellectual property protected under
copyright laws can be classified as follows:
Literary Works:
These cover published works including books, articles, journals, and periodicals, as well as
manuscripts. Even adaptations, translations, and abridgements are taken as original works and
are protected under copyright law. Very importantly, these also cover computer programs and
computer databases.
Dramatic Works:
A dramatic work is a work capable of being physically performed. It need not be fixed in writing or
otherwise. Some examples of dramatic works are a piece of recitation, choreographic work,
elements of a dance or ballet, costumes, and scenery associated with a drama, etc.
Musical Works:
A musical work means a work consisting of music and it includes graphical notation of such a
work. The words in a song and the music have separate rights and the rights cannot be merged.
Artistic Works:
Artistic works are works such as paintings, sculptures, drawings, engravings, photographs, and
architectural works, irrespective of judgements on their artistic quality.
Cinematographic Films and Sound Recordings:
Cinematography covers any method used to record moving images, including video recording and
recordings of short clips using webcams and cell-phones. Soundtracks of movies also come under
cinematography. Similarly, stand-alone sound recordings are also protected under copyright laws.
Registration of Copyright:
Though the Indian Copyright Act provides for a procedure for registration of copyright, registration
is not necessary for acquiring a copyright. In fact, it is not advisable to go through the trouble of
registering a copyright.
In Indian laws, a copyright is created when the original work is created and unlike laws in the US,
registering it does not confer any special rights. The particulars with the Registrar of Copyrights
will serve as evidence of existence of the work on the date of registration. Many creators of
original work use other methods to prove existence of their work on a particular date such as
depositing manuscripts in a bank locker.
Copyright Protection:
There are four basic concepts central to the idea of copyright protection as discussed here.
Idea vs. Expression:
It is necessary to fix the boundary between the idea and the expression contained in the original
work. It is important to note that copyright applies only to the expression and not to the idea. But
what constitutes the idea and not the expression can be a source of great legal debate.
Originality:
To get protection under copyright laws, it is important to establish that the work originates from the
author and is not a copied work.
Fixation:
Copyright can exist only if the work is represented in a material form. It is only if the book is
written, the sound is recorded, or the painting or sculpture is executed, that the work is eligible for
protection under copyright laws.
Fair Use:
Copyright holders are deemed to consent to fair use of their work by others. Fair use is not defined
but can include use in the course of news reporting, commenting, scientific research, etc.
Copyright Term:
In most cases, the term of copyright is the lifetime of the author plus 60 years thereafter. There are
some notable exceptions as given below:
1. Broadcasting organization has rights with respect to their broadcasts. The term of this right
is 25 years from the beginning of the calendar year following the year in which the
broadcast is made.
 2. Performers have some special rights in relation to their performance. These rights are for a
period of 50 years from the beginning of the calendar year following the year of the first
performance.
3. In case of posthumous publications, the rights stand for a period of 60 years after the
publication.
Infringement of Copyright:
A copyright grants protection to the creator of an original work and prevents such work from being
copied or reproduced without consent. The creator of a work can prohibit anyone from
1. Reproducing the work in any form, such as print, sound, video, etc.,
2. Recording the work in compact disks, cassettes, etc.,
3. Broadcasting it in any form,
4. Translating it into other languages, and
5. Using the work for a public performance, such as a stage drama or musical performance.
A copyright is infringed when someone, without the permission of the copyright holder, does any of
the above, which only the copyright holder has the exclusive right to do.
The Copyright Act provides for both civil and criminal remedies for infringements of copyrights. On
proving an infringement, the copyright owner is entitled to remedy by way of injunctions and order
for seizure and destruction of infringing articles. The offending parties may also be asked to pay
damages.
The Registrar of Copyrights has the power to prevent the import of infringing copies. On receiving
a complaint, the Registrar can enter ships, docks, or warehouses, housing the alleged infringing
material and examine them. In case the infringing material is found, it is handed over to the
copyright holder.
Copyright Protection for Computer Programs:
In 1994, the definition of the term literary work in the Copyright Act was amended to include
‘computer programs, tables and compilations, including computer databases.’
Owners of computer programs get protection under copyright laws. A computer program can be
registered with the Registrar of Copyrights by giving the first 25 and the last 25 lines of the source
code. Here again, it is preferred to establish date of development by submitting logbooks detailing
development work, etc.
Making copies of legally obtained computer programs for purposes of making back-up copies as a
temporary protection against damage or destruction is permitted. Knowingly making use of an
infringing copy of a computer program is a punishable offence.
The penalty for such an offence is imprisonment (minimum of seven days and maximum of three
years) and a fine (Rs. 50,000 to Rs. 2, 00,000). If the offender pleads and proves that he/she used
the infringing copy for personal use and not in the course of trade, court is likely to take a lenient
view of the matter and impose the minimum fine of Rs. 50,000.
Rights of the Copyright Owner
Granting copyright seeks to protect the creative endeavor of an owner. Copyright gives an
exclusive right to the owner to do certain acts in relation to literary, dramatic, musical, and artistic
works, cinematography and sound recordings. Copyright is valid till the life of the originator plus 50
years after his death. In the case of cinematographic work, the copyright is valid until 50 years
after the work has been made available to the public while for photographic works 25 years after
the making of the work.
In India matters related to copyright are governed by the Copyright Act in 1957, which was
subsequently amended in the year 1994 and 2002. Copyright cannot be granted in some cases
like:
 Copyright cannot be said to be violated if the idea or concept of any person is used in a
different manner.
 Copyright is not granted for ideas.
 Copyright is not granted in live events.
The Copyright Act, 1957 provides copyright protection in India. It confers copyright protection in
the following two forms:
(A) Economic rights of the author, and
(B) Moral Rights of the author.
Rights of the copyright owner
Right to Distribute
Right to distribute is an off-shoot of the right of reproduction. The person who owns the copyright
owner may distribute his work in any manner he deems fit. The owner is also entitled to transfer
the whole or some rights in favor of any other person while retaining others. For example, he can
entitle any person to translate his work.
Right of Reproduction
This is the most prominent right which is acquired after the copyright protection. This right
authorizes the person having such copyright to make copies of the protected work in any form. In
the modern context copying, a song on a Compact Device or any sound and visual recording can
be considered as a reproduction of the content. Prior to copying the permission of the author is
required unless it can be shown that such copying is not intended to make any commercial
benefits out of it.
Private Copying
This is an exception to the reproduction rights which are attained by the owner. According to this
right, any person can make copies of the copyright protected work if it is proved that such copying
is for educational purpose and that there is no commercial motive behind such copies being made.
Sui Generis Rights
The ordinary copyright law often fails to protect the computer software and databases since the
essential element of creativity is not present in such databases. Therefore, there was a need for
new law to protect such software and databases. The law of sui generis was introduced to resolve
the problem of resolving databases on the whole. A database is a compilation or arrangement of
information which may not be creative; it may still require protection from unauthorized copying.
However, this may require certain modifications such as the making of copies has to be excluded
from such copyright protection. Such database right exists for a fifteen-year period.
Right of Paternity
The Right of Paternity or Attribution gives the copyright owner a right to claim authorship of the
work. Under the Right of Paternity, a copyright owner can claim due credit for any of his works.
Thus, if a movie is produced based on a book by an author, and he hasn’t been given due credit in
it, he can sue the makers to acknowledge his work.
Right to Follow
This right is granted generally only to the authors and artists. This empowers the authors to obtain
a percentage of the subsequent sales of his work and is called Droit de Suite or Right to Follow.
The right is also available to artists on resale of their work.
Right to Publicly Perform
The owner of the copyright has the right to publicly perform his works. Example, he may perform
dramas based on his work or may perform at concerts, etc. This also includes the right of the
owner to broadcast his work. This includes the right of the owner to make his work accessible to
the public on the internet. This empowers the owner to decide the terms and conditions to access
his work.
Right to make Derivative Works
The copyright has the right to use his work in various ways, for instance making adaptations or
translations. One example of adaptation is making a movie based on a novel, so here to make any
derivative work the consent of the owner is mandatorily required. In these situations, certain other
rights of the owner also come into play, like the right to integrity which protects the owner against
deformation, defacement or modification of his work in a way that it is harmful for his reputation.
Preparation of Business Plan
Business Plan is a strategic document that outlines the goals, objectives, and operational
strategies of a business. It serves as a roadmap for entrepreneurs, guiding them through the
process of starting and managing their venture. Typically, a business plan includes sections such
as an executive summary, company description, market analysis, organization and management
structure, product or service line, marketing and sales strategies, funding requirements, and
financial projections. It not only helps in securing funding from investors or loans from financial
institutions but also provides a framework for monitoring progress and making adjustments as the
business evolves. Ultimately, a well-crafted business plan is crucial for laying a solid foundation
and increasing the likelihood of success in a competitive marketplace.
Preparation of Business Plan:
Preparing a business plan is a crucial step for any entrepreneur or business owner aiming to start
a new venture or expand an existing one. It serves as a comprehensive roadmap that outlines the
goals, strategies, and operational details needed to achieve success.
 Executive Summary:
This section provides a concise overview of the entire business plan, summarizing the business
concept, objectives, unique selling proposition (USP), and key highlights. It’s often the first part
investors or stakeholders read, so it should grab attention and provide a clear picture of what the
business aims to achieve.
 Company Description:
Here, the business’s mission, vision, values, legal structure, and location are detailed. It also
includes a brief history, if applicable, and any strategic advantages or partnerships that set the
business apart in the marketplace.
 Market Analysis:
This section involves researching and understanding the industry landscape, target market
demographics, needs, behaviors, and trends. It should also analyze competitors’ strengths and
weaknesses, market size, growth potential, and any regulatory or environmental factors impacting
the industry.
 Organization and Management:
Describe the organizational structure, management team, key personnel, and their roles and
responsibilities. Highlight any relevant experience, qualifications, or expertise that positions the
team to execute the business plan effectively.
 Product or Service Line:
Detail the offerings, including features, benefits, and competitive advantages. This section should
also cover the development stage, intellectual property considerations, manufacturing or sourcing
processes, and future product/service expansion plans.
 Marketing and Sales Strategy:
Outline how the business will attract and retain customers. This includes market positioning,
pricing strategy, promotional activities, distribution channels, and sales forecasts. It should also
incorporate a customer acquisition plan and strategies for building customer loyalty.
 Funding Requirements:
Specify the amount of funding required and how it will be utilized. Detail the sources of funding,
whether through equity investment, loans, grants, or crowdfunding. Provide financial projections,
including revenue forecasts, break-even analysis, and return on investment (ROI) for potential
investors.
 Financial Projections:
Present comprehensive financial statements, including income statements, cash flow projections,
and balance sheets. These should be based on realistic assumptions and reflect the financial
health and growth trajectory of the business over a specific period.
 Implementation Plan:
Outline the operational plan for executing the business strategy. This includes setting milestones,
timelines, and specific tasks, as well as assigning responsibilities to team members. It ensures
clarity and accountability in achieving business objectives.
 Risk Analysis:
Identify potential risks and challenges that could impact the business’s success. Develop
strategies to mitigate these risks and demonstrate to stakeholders that the business plan is robust
and adaptable to changing market conditions.
Advantages of Business Plan:
 Clear Direction:
It provides a roadmap for the business, outlining goals, strategies, and action plans. This clarity
helps stakeholders understand the business’s purpose and direction.
 Risk Management:
By identifying potential risks and challenges upfront, a business plan enables proactive mitigation
strategies. This reduces uncertainty and enhances the business’s ability to navigate obstacles
effectively.
 Attracting Funding:
A comprehensive business plan is essential for securing funding from investors, banks, or other
financial institutions. It demonstrates the business’s viability, growth potential, and expected
returns, instilling confidence in potential investors.
 Operational Efficiency:
The planning process encourages thorough examination of operational processes, resource
allocation, and management structures. This promotes efficiency and effectiveness in day-to-day
operations.
 Market Understanding:
Through market research and analysis, a business plan provides insights into the target market,
customer needs, and competitive landscape. This understanding allows businesses to tailor their
offerings and marketing strategies to better meet market demand.
 Goal Setting and Monitoring:
Business plans establish measurable goals and benchmarks for tracking progress. This
systematic approach facilitates ongoing performance evaluation and adjustments to stay on
course toward achieving business objectives.
 Communication and Alignment:
A business plan serves as a communication tool, aligning internal teams, stakeholders, and
external partners around the business’s vision and strategy. It ensures everyone is on the same
page and working towards common goals.
Disadvantages of Business Plan:
 Rigidity:
A detailed business plan may become too rigid, limiting flexibility to adapt to unforeseen changes
in the market or business environment.
 Time-consuming:
Creating a thorough business plan requires significant time and effort, diverting resources away
from other critical business activities.
  Overemphasis on Financial Projections:
Business plans often heavily rely on financial projections which can be speculative and may not
accurately reflect actual outcomes.
 False Sense of Security:
Entrepreneurs might rely too heavily on the business plan, assuming success based on
projections rather than continuous adaptation and improvement.
 Limited Creativity:
A strict adherence to the business plan may stifle creativity and innovative thinking, preventing
exploration of new opportunities or strategies.
 Obsolete Information:
In rapidly changing industries, a business plan can quickly become outdated, leading to strategies
based on obsolete data or assumptions.
 Potential Disappointment:
If actual results deviate significantly from projections, stakeholders may become disillusioned,
affecting morale and credibility.
Business Plan Objectives
The major objectives that a business Plan looks to achieve include the following elements.
1) Dedicating enough time for planning
A workable business plan cannot be created overnight. It is bound to take its own time to develop.
So, a perfect business plan will attempt to spend enough time and hard work to achieve
successful implementation. This should be one of the crucial stages in a business plan.
A complete analysis of the current situation is the key to evolving plans. Review the situation
through brainstorming and other techniques to define the goals.
2) Create goals and objectives
An organization depends heavily on the business plan to arrive at the description of business it
performs. There are several areas that a company will focus on if it wants to realize its objectives,
understand the market that it is planned to operate in and the strategy to achieve the goals.
Lack of a business plan will leave the management without any means to check out the theories
on how to operate the business. In essence, a business plan will help a company to test different
methods in reaching the best standards and policies.
3) Evaluating performance
A business needs proper planning and control over the activities for enhanced performance. It will
be an essential step towards achieving the long term survival of the organization as a whole. The
business plan also comes with a financial part to it and used for comparing the actual performance
with the estimated one.
The ability and provision for such a control and evaluation procedure are what offers you a great
advantage in checking the success of the operations. This way, you will be able to detect issues
like production or delivery delays, or even increasing production costs.
4) Gauging business strategy and applying due correction
A Business plan is what would assist you in assessing the efficiency of your strategies for
achieving business goals. In an ideal condition, a business needs to have the planned results with
which the actual results can be compared, and the way forward is decided.
If any of the strategies are found to be unsuccessful in achieving the relevant results, it may be a
perfect idea to ditch the strategy or take corrective actions. It is wise to have a good business plan
so that the management does have a reference with which it can have a healthy comparison of the
actual result achieved.
5) Arranging financial resources
A business plan can be much helpful and instrumental in acquiring adequate business financing.
Like we stated already, banks and lenders look for a proper business plan before lending you any
sort of finance.
A business plan should be prepared in such a manner that the banks will have a clear
understanding of the business perspective that the owner has. The lenders will be able to get to
the root of the actual vision shared by the promoters and the methods of operation that will be
employed.
Being financially viable is one of the prime objectives of a good business plan.
6) Stay consistent
This should be yet another objective that a business plan needs to be focussed with is being
consistent. A good business plan should place proper value on the exact process and its
adherence to the planned goals.
Sticking to a consistent schedule will work wonders in achieving the planned goals effectively. This
will also help the employees and other staff to fall into a proper routine. This will help the concept
of planning to be a part of your business culture.
7) Keep your goals ’SMART’
No, we are not referring to SMART as in the word intelligent. We mean your goals in the business
plan should be S-M-A-R-R-T (Specific, Measurable, Actionable, Realistic, and Time-Bound) to
achieve success.
This will help you achieve the business goals as laid out in the business plan effectively and
efficiently. It would be practical to have your team member analyze the goals set so that you will
get back to a realistic approach.
8) Performing SWOT Analysis
SWOT Analysis is one of the best options you would want to go with when it comes to focus on an
effective business plan. Having perfect knowledge of the strengths and weaknesses of your
organization helps you come up with a better insight into the realistic goals.
The SWOT analysis also takes into account the opportunities and threats that the organization can
come to face to face. This will assist you to focus on the positive factor and take corrective actions
against the negatives.
9) Marketing Analysis
Marketing forms an integral part of a business and so does with the business plan. This part of the
business plan should be focussed on determining the potential of your product or service while
letting the business owners know more about future customers.
The marketing analysis part of the business plan should ideally provide you with a means of
understanding your industry as a whole.
Marketing Plan
A marketing plan may be part of an overall business plan. Solid marketing strategy is the
foundation of a well-written marketing plan so that goals may be achieved. While a marketing plan
contains a list of actions, without a sound strategic foundation, it is of little use to a business.
A marketing plan is a comprehensive document or blueprint that outlines the advertising and
marketing efforts for the coming year. It describes business activities involved in accomplishing
specific marketing objectives within a set time frame. A marketing plan also includes a description
of the current marketing position of a business, a discussion of the target market and a description
of the marketing mix that a business will use to achieve their marketing goals. A marketing plan
has a formal structure, but can be used as a formal or informal document which makes it very
flexible. It contains some historical data, future predictions, and methods or strategies to achieve
the marketing objectives. Marketing plans start with the identification of customer needs through a
market research and how the business can satisfy these needs while generating an acceptable
return. This includes processes such as market situation analysis, action programs, budgets, sales
forecasts, strategies and projected financial statements. A marketing plan can also be described
as a technique that helps a business to decide on the best use of its resources to achieve
corporate objectives. It can also contain a full analysis of the strengths and weaknesses of a
company, its organization and its products.
The marketing plan shows the step or actions that will be utilized in order to achieve the plan
goals. For example, a marketing plan may include a strategy to increase the business’s market
share by fifteen percent. The marketing plan would then outline the objectives that need to be
achieved in order to reach the fifteen percent increase in the business market share. The
marketing plan can be used to describe the methods of applying a company’s marketing resources
to fulfill marketing objectives. Marketing planning segments the markets, identifies the market
position, forecast the market size, and plans a viable market share within each market segment.
Marketing planning can also be used to prepare a detailed case for introducing a new product,
revamping current marketing strategies for an existing product or put together a company
marketing plan to be included in the company corporate or business plan.
Outline
A marketing plan should be based on where a company needs to be at some point in the future.
These are some of the most important things that companies need when developing a marketing
plan:
Market research: Gathering and classifying data about the market the organization is currently in.
Examining the market dynamics, patterns, customers, and the current sales volume for the
industry as a whole.
Competition: The marketing plan should identify the organization’s competition. The plan should
describe how the organization will stick out from its competition and what it will do to become a
market leader.
Market plan strategies: Developing the marketing and promotion strategies that the organization
will use. Such strategies may include advertising, direct marketing, training programs, trade
shows, website, etc.
Marketing plan budget: Strategies identified in the marketing plan should be within the budget.
Top managers need to revise what they hope to accomplish with the marketing plan, review their
current financial situation, and then allocate funding for the marketing plan.
Marketing goals: The marketing plan should include attainable marketing goals. For example,
one goal might be to increase the current client base by 100 over a three-month period.
Marketing Mix: The marketing plan should evaluate the appropriate marketing mix. This includes
setting up the marketing 4 P’s the product, price, place, and promotion. These four elements are
modified until the best combination have been found that will cater the needs of the product’s
customer that would result to the maximum profitability of the company.
Monitoring of the marketing plan results: The marketing plan should include the process of
analyzing the current position of the organization. The organization needs to identify the strategies
that are working and those that are not working.
Purpose
One of the main purposes of developing a marketing plan is to set the company on a specific path
in marketing. The marketing goals normally aligns itself to the broader company objectives. For
example, a new company looking to grow their business will generally have a marketing plan that
emphasizes strategies to increase their customer base. Acquiring marketing share, increasing
customer awareness, and building a favorable business image are some of the objectives that can
be related to marketing planning. The marketing plan also helps layout the necessary budget and
resources needed to achieve the goals stated in the marketing plan. The marketing plan shows
what the company is intended to accomplish within the budget and also to make it possible for
company executives to assess potential return on the investment of marketing dollars. Different
aspects of the marketing plan relate to accountability.
The marketing plan is a general responsibility from company leaders and the marketing staff to
take the company in a specific direction. After the strategies are laid out and the tasks are
developed, each task is assigned to a person or a team for implementation. The assigned roles
allow companies to keep track of their milestones and communicate with the teams during the
implementation process. Having a marketing plan helps company leaders to develop and keep an
eye on the expectations for their functional areas. For example, if a company’s marketing plan
goal is to increase sales growth then the company leaders may have to increase their sales staff in
stores to help generate more sales.
The marketing plan offers a unique opportunity for a productive discussion between employees
and leaders of an organization. It provides good communication within the company. The
marketing plan also allows the marketing team to examine their past decisions and understand
their results in order to better prepare for the future. It also lets the marketing team to observe and
study the environment that they are operating in.
Marketing planning aims and objectives
Though it’s not clear, behind the corporate objectives, which in themselves offer the main context
for the marketing plan, will lie the “corporate mission,” in turn provides the context for these
corporate objectives. In a sales-oriented organization, the marketing planning function designs
incentive pay plans to not only motivate and reward frontline staff fairly but also to align marketing
activities with corporate mission. The marketing plan basically aims to make the business provide
the solution with the awareness with the expected customers.
This “corporate mission” can be thought of as a definition of what the organization is, or what it
does: “Our business is …”. This definition should not be too narrow, or it will constrict the
development of the organization; a too rigorous concentration on the view that “We are in the
business of making meat-scales,” as IBM was during the early 1900s, might have limited its
subsequent development into other areas. On the other hand, it should not be too wide or it will
become meaningless; “We want to make a profit” is not too helpful in developing specific plans.
The marketing objectives must usually be based, above all, on the organization’s financial
objectives; converting these financial measurements into the related marketing measurements. He
went on to explain his view of the role of “policies,” with which strategy is most often confused:
“Policies are rules or guidelines that express the ‘limits’ within which action should occur.
“Simplifying somewhat, marketing strategies can be seen as the means, or “game plan,” by which
marketing objectives will be achieved and, in the framework that appears here, are generally
concerned with the 8 P’s. Examples are:
Price: The amount of money needed to buy products
Product: The actual product
Promotion (advertising): Getting the product known
Placement: Where the product is sold
People: Represent the business
Physical environment: The ambiance, mood, or tone of the environment
Process: The Value-added services that differentiate the product from the competition (e.g. after-
sales service, warranties)
Packaging: How the product will be protected
The most important element is, the detailed plans, which spell out exactly what programs and
individual activities will carry at the period of the plan (usually over the next year). Without these
activities the plan cannot be monitored. These plans must therefore be:
Clear: They should be an unambiguous statement of ‘exactly’ what is to be done.
Quantified: The predicted outcome of each activity should be, as far as possible, quantified, so
that its performance can be monitored.
Focused: The temptation to proliferate activities beyond the numbers which can be realistically
controlled should be avoided. The 80:20 Rule applies in this context too.
Realistic: They should be achievable.
Agreed: Those who are to implement them should be committed to them, and agree that they are
achievable. The resulting plans should become a working document which will guide the
campaigns taking place throughout the organization over the period of the plan. If the marketing
plan is to work, every exception to it (throughout the year) must be questioned; and the lessons
learnt, to be incorporated in the next year’s.
Content of the marketing plan
A Marketing Plan for a small business typically includes Small Business Administration Description
of competitors, including the level of demand for the product or service and the strengths and
weaknesses of competitors
1. Description of the product or service, including special features
2. Marketing budget, including the advertising and promotional plan
3. Description of the business location, including advantages and disadvantages for marketing
4. Pricing strategy
5. Market Segmentation
Medium-sized and large organizations
The main contents of a marketing plan are:
1. Executive Summary
2. Situational Analysis
3. Opportunities / Issue Analysis: SWOT Analysis
4. Objectives
5. Marketing Strategy
6. Action Program (the operational marketing plan itself for the period under review)
7. Financial Forecast
8. Controls
Marketing Research, Types, Process Tools and Techniques
Marketing Research is the systematic process of gathering, analyzing, and interpreting
information about a market, target audience, competition, or industry trends. It helps businesses
identify opportunities, assess consumer needs, preferences, and behaviors, and evaluate the
effectiveness of marketing strategies. Marketing research can be classified into primary
research (collecting new data through surveys, interviews, or experiments) and secondary
research (analyzing existing data like reports or publications). It provides critical insights that
guide decision-making, enhance customer satisfaction, and improve product or service offerings.
Effective marketing research ensures that organizations remain competitive and responsive in
dynamic market environments.
Features of Marketing Research:
1. Systematic Process
Marketing research follows a structured and methodical approach. It begins with identifying the
problem or opportunity, followed by designing the research plan, data collection, analysis, and
interpretation. This systematic process ensures accuracy and reliability in findings, which are
critical for informed decision-making.
 Example: A company launching a new product systematically conducts surveys and focus
groups to evaluate consumer demand.
2. Objective-Oriented
The primary goal of marketing research is to provide solutions to specific marketing problems or to
uncover opportunities. It focuses on collecting relevant data and generating actionable insights to
achieve predefined objectives. By remaining goal-focused, marketing research helps avoid
irrelevant or excessive data collection.
 Example: A company may conduct research specifically to understand why sales of a
product are declining.
3. Data-Driven
Marketing research relies on data, whether qualitative (opinions, emotions, or motivations) or
quantitative (numbers, statistics, or trends). The quality of the research is directly tied to the
accuracy, relevance, and timeliness of the data collected.
 Example: A retailer analyzing customer purchase patterns uses sales data to design
targeted promotions.
4. Analytical in Nature
Marketing research emphasizes rigorous analysis of collected data to derive meaningful insights.
Various analytical tools and statistical techniques are used to interpret the data, identify trends,
and make forecasts. This ensures that decisions are not based on guesswork but on factual
evidence.
 Example: A software company uses predictive analytics to estimate customer lifetime value
based on historical behavior.
5. Continuous and Adaptive
Marketing research is not a one-time activity but an ongoing process. Markets are dynamic, with
changing consumer behaviors, preferences, and competitive forces. Businesses must adapt their
research efforts to stay relevant and updated with current trends.
 Example: Social media platforms conduct regular research to understand user preferences
and develop new features accordingly.
6. Problem-Solving Orientation
Marketing research aims to solve real-world problems by identifying issues and suggesting
practical solutions. It provides actionable recommendations to enhance marketing strategies,
product development, or customer engagement.
 Example: Research findings may indicate the need for better customer service training to
improve satisfaction levels.
Types of Marketing Research:
1. Exploratory Research
This type of research is conducted when the problem is not clearly defined, and the objective is to
explore new ideas or insights. It is qualitative in nature and helps identify potential issues,
opportunities, or solutions. Techniques like focus groups, in-depth interviews, and open-ended
surveys are commonly used.
 Example: A company exploring the viability of a new product concept by interviewing a
small group of target customers.
2. Descriptive Research
Descriptive research aims to describe the characteristics of a specific market or consumer group.
It is often quantitative and provides information about consumer demographics, behaviors, and
preferences. Surveys, observational studies, and data analysis are typical methods used.
 Example: A retailer conducting a survey to understand the purchasing habits of millennials.
3. Causal Research
Also known as experimental research, causal research is conducted to identify cause-and-effect
relationships between variables. It tests hypotheses to determine how changes in one variable
(e.g., price) impact another (e.g., sales).
 Example: A business running A/B tests on two different ad campaigns to measure their
impact on customer engagement.
4. Qualitative Research
This research focuses on understanding consumer emotions, motivations, and behaviors through
non-numerical data. It uses methods like focus groups, interviews, and ethnographic studies to
gather in-depth insights.
 Example: A luxury brand conducting interviews to understand how customers perceive
exclusivity.
5. Quantitative Research
Quantitative research collects and analyzes numerical data to identify trends, patterns, and
relationships. It relies on large sample sizes and uses techniques like surveys, statistical analysis,
and structured questionnaires.
 Example: A telecom company analyzing customer satisfaction scores through large-scale
surveys.
6. Primary Research
Primary research involves collecting original data directly from respondents. It provides specific
insights tailored to the research objectives and is conducted through surveys, experiments, and
direct observations.
 Example: A startup conducting an online poll to gauge interest in its new app.
7. Secondary Research
This type of research involves analyzing existing data from sources like reports, studies, industry
publications, and government statistics. It is cost-effective and useful for understanding broader
trends.
 Example: A business using market reports to understand industry growth rates.
8. Product Research
Product research focuses on understanding consumer preferences and feedback related to a
product’s features, packaging, or usability. It helps in product development and enhancement.
 Example: A beverage company testing different flavors with a focus group.
9. Market Segmentation Research
This research identifies distinct consumer segments within a broader market based on
demographics, behaviors, or preferences. It helps businesses target the right audience effectively.
 Example: A fashion retailer segmenting its market into groups based on age and lifestyle.
10. Competitive Analysis Research
This type examines competitors’ strategies, strengths, and weaknesses. It provides insights into
the competitive landscape and helps businesses differentiate themselves.
 Example: A software company analyzing its competitors’ pricing and features.
Process of Marketing Research:
1. Identifying the Problem or Opportunity
The first step in the marketing research process is clearly defining the problem or identifying the
opportunity. This step is critical, as it sets the foundation for the entire research process. A poorly
defined problem may lead to irrelevant or misleading results. Businesses need to determine what
they want to achieve, whether it is understanding declining sales, evaluating a new product’s
potential, or exploring customer preferences. For instance, a company may want to know why
customer satisfaction levels have decreased over the past quarter.
2. Developing the Research Plan
Once the problem is identified, the next step is to design a comprehensive research plan. This
involves selecting the type of research (exploratory, descriptive, or causal) and determining the
research approach (qualitative, quantitative, or a mix of both). Additionally, researchers decide on
the methods for data collection, such as surveys, interviews, focus groups, or experiments. The
plan should also outline the sampling method, sample size, and research budget. A well-thought-
out research plan ensures that the process is efficient and cost-effective.
3. Collecting Data
Data collection is a crucial step that involves gathering information from primary or secondary
sources. Primary data is collected firsthand through methods like questionnaires, interviews, and
observations. Secondary data is obtained from existing sources such as market reports,
government publications, and industry databases. The choice of data collection method depends
on the objectives and available resources. For instance, if a business wants real-time customer
feedback, it may use online surveys or social media polls.
4. Analyzing the Data
After data collection, the next step is to organize, analyze, and interpret the information to derive
meaningful insights. Statistical tools, software, and techniques like regression analysis, correlation,
and data visualization are often employed. This step involves identifying patterns, trends, and
relationships within the data. For example, analysis may reveal that customers prefer specific
product features or that price sensitivity is affecting sales.
5. Presenting the Findings
Once the data is analyzed, the results need to be compiled into a clear and concise report. The
report typically includes an executive summary, research objectives, methodology, key findings,
and actionable recommendations. Visual aids like graphs, charts, and tables are often used to
make the findings easier to understand. This presentation helps decision-makers grasp the key
insights and make informed choices based on the research.
6. Taking Action and Monitoring Results
The final step in the marketing research process is to implement the recommendations and
monitor the outcomes. Businesses use the insights gained to develop strategies, improve
products, or enhance customer experiences. Continuous monitoring ensures that the implemented
actions are achieving the desired results and allows for adjustments if necessary. For instance, if a
marketing campaign based on research insights shows positive results, it validates the research
process.
Tools and Techniques of Marketing Research:
1. Data Collection Tools
a. Surveys and Questionnaires
Surveys are one of the most popular tools for collecting primary data. They involve structured
questions designed to gather quantitative or qualitative insights.
 Example: Online surveys using platforms like Google Forms, SurveyMonkey, or Qualtrics.
 Benefit: Cost-effective and scalable for large audiences.
b. Interviews
Interviews provide in-depth insights by engaging participants in detailed discussions. They can be
conducted face-to-face, via phone, or online.
 Example: One-on-one interviews with key customers to explore their motivations.
 Benefit: Allows for probing and clarifying responses.
c. Focus Groups
Focus groups involve moderated discussions with a small group of participants to gather opinions
and ideas.
 Example: A retailer organizing focus groups to test new store layouts.
 Benefit: Reveals group dynamics and diverse perspectives.
d. Observation
Observation involves monitoring consumer behavior in real-world settings without direct
interaction.
 Example: Watching how shoppers navigate a store.
 Benefit: Captures actual behavior rather than self-reported data.
e. Experiments
Experiments test specific variables to determine cause-and-effect relationships.
 Example: A/B testing two versions of a website landing page.
 Benefit: Provides reliable data for decision-making.
2. Data Analysis Tools
a. Statistical Software
Statistical tools like SPSS, SAS, and R help analyze large datasets and uncover trends,
correlations, and patterns.
 Example: A company using SPSS to analyze survey results.
 Benefit: Ensures accurate and sophisticated data analysis.
b. Data Visualization Tools
Tools like Tableau, Power BI, and Excel create visual representations of data, such as charts and
graphs.
 Example: A marketer using Tableau to create dashboards for campaign performance.
 Benefit: Makes complex data easy to understand and interpret.
c. Predictive Analytics
Predictive tools use algorithms and machine learning to forecast future trends and behaviors.
 Example: An e-commerce platform predicting customer purchase likelihood.
 Benefit: Enables proactive decision-making.
3. Online Tools
a. Social Media Analytics
Platforms like Hootsuite and Brandwatch analyze consumer sentiment and behavior on social
media.
 Example: Tracking brand mentions and hashtags to measure campaign effectiveness.
 Benefit: Provides real-time insights into public opinion.
b. Web Analytics
Google Analytics and similar tools track website traffic, user behavior, and conversion rates.
 Example: Monitoring the effectiveness of an ad campaign through website traffic spikes.
 Benefit: Helps optimize digital marketing strategies.
c. CRM Systems
Customer Relationship Management (CRM) tools like Salesforce and HubSpot track customer
interactions and preferences.
 Example: Analyzing customer purchase history to identify upselling opportunities.
 Benefit: Enhances customer relationship strategies.
4. Secondary Research Tools
a. Industry Reports and Publications
Reports from organizations like Nielsen, Gartner, or McKinsey provide valuable secondary data.
 Example: Using market trends from a Nielsen report to strategize.
 Benefit: Saves time and resources on primary research.
b. Government Data
Government databases, like Census data or economic reports, offer comprehensive and reliable
information.
 Example: Analyzing population trends for market expansion.
 Benefit: Provides credible data for broad insights.
5. Qualitative Techniques
a. SWOT Analysis
This technique assesses a business’s strengths, weaknesses, opportunities, and threats.
 Example: A company analyzing its competitive edge in a new market.
 Benefit: Supports strategic planning.
b. Ethnographic Research
This involves observing consumers in their natural environments to understand their habits and
lifestyles.
 Example: Studying how rural communities use a product.
 Benefit: Offers deep, contextual insights.
Advantages of Marketing Research
(i) Marketing research helps the management of a firm in planning by providing accurate and up-
to-date information about the demands, their changing tastes, attitudes, preferences, buying.
(ii) It helps the manufacturer to adjust his production according to the conditions of demand.
(iii) It helps to establish correlative relationship between the product brand and consumers’ needs
and preferences.
(iv) It helps the manufacturer to secure economies in the distribution о his products.
(v) It makes the marketing of goods efficient and economical by eliminating all type of wastage.
(vi) It helps the manufacturer and dealers to find out the best way of approaching the potential.
(vii) It helps the manufacturer to find out the defects in the existing product and take the required
corrective steps to improve the product.
(viii) It helps the manufacturer in finding out the effectiveness of the existing channels of
distribution and in finding out the best way of distributing the goods to the ultimate consumers.
(ix) It guides the manufacturer in planning his advertising and sales promotion efforts.
(x) It is helpful in assessing the effectiveness of advertising programmes.
(xi) It is helpful in evaluating the relative efficiency of the different advertising media.
(xii) It is helpful in evaluating selling methods.
(xiii) It reveals the causes of consumer resistance.
(xiv) It minimizes the risks of uncertainties and helps in taking sound decisions.
(xv) It reveals the nature of demand for the firm’s product. That is, it indicates whether the demand
for the product is constant or seasonal.
(xvi) It is helpful in ascertaining the reputation of the firm and its products.
(xvii) It helps the firm in determining the range within which its products are to be offered to the
consumers. That is, it is helpful in determining the sizes, colours, designs, prices, etc., of the
products of the firm.
(xviii) It would help the management to know how patents, licensing agreements and other legal
restrictions affect the manufacture and sale of the firm’s products.
(xix) It is helpful to the management in determining the actual prices and the price ranges.
(xx) It is helpful to the management in determining the discount rates.
Limitations of Marketing Research
1. High Costs
Conducting marketing research can be expensive, especially for small businesses with limited
budgets. Expenses for hiring research agencies, designing surveys, collecting data, and using
analytical tools can add up quickly. This financial constraint may force companies to compromise
on the quality or scope of the research.
 Example: A startup may avoid conducting large-scale surveys due to high costs, leading to
limited insights.
2. Time-Consuming Process
Marketing research is a time-intensive process that involves multiple steps, including planning,
data collection, analysis, and reporting. In fast-moving markets, by the time the research is
complete, the insights may already be outdated, rendering them less useful.
 Example: A company taking months to complete research for a new product launch may
lose its first-mover advantage.
3. Risk of Inaccurate Data
The accuracy of marketing research depends on the quality of data collected. If the data is
incorrect, biased, or incomplete, the insights derived from it will also be flawed. Poor sampling
techniques, respondent dishonesty, or misinterpretation can lead to unreliable results.
 Example: Customers providing false responses in a survey to avoid revealing their true
preferences.
4. Limited Scope
Marketing research often focuses on specific issues, making it difficult to gain a holistic view of the
market. Additionally, certain qualitative factors, like emotional responses or cultural nuances, may
be difficult to quantify or measure accurately.
 Example: Research that examines customer satisfaction but overlooks external factors like
economic conditions influencing buying behavior.
5. Dependency on Respondents
Marketing research relies heavily on respondents’ participation and honesty. If respondents are
unwilling to engage, provide inaccurate information, or exhibit bias, the results can be
compromised. Non-response or low response rates can also affect the validity of the study.
  Example: Online surveys often experience low response rates, leading to insufficient data
for meaningful analysis.
6. Rapid Market Changes
Markets are dynamic, with trends, consumer preferences, and competition evolving rapidly.
Research findings may become irrelevant by the time they are implemented, especially in
industries like technology or fashion where changes occur frequently.
 Example: A company basing its advertising strategy on outdated research results may fail
to connect with current consumer trends.
Nature and importance of Market Research
According to American Marketing Association “marketing research is the systematic gathering,
recording and analysing of data about problems relating to the marketing of goods and services.”
According to Green and Tull, “marketing research is the systematic and objective search for and
analysis of information relevant to the identification and solution of any problem in the field of
marketing”.
Professor Philip Kotler defines marketing research as “Systematic problem analysis, model-
building and fact-finding for the purpose of improved decision making and control in the marketing
of goods and services.”
Importance of Marketing Research
The following points explain the importance of marketing research:
1. Identifying problem and opportunities in the market
It helps in identifying new market opportunities for existing and new products. It provides
information on market share, nature of competition, customer satisfaction levels, sales
performances and channel of distribution. This helps the firms is solving problems.
2. Formulating market strategies
Today, markets are no more local. They have become global. Manufactures find it difficult to
contact customers and control distribution channels. Competition is equally severe. The consumer
needs are difficult to predict. Market segmentation is a complicated task in such wide markets. The
marketing intelligence provided through marketing research not only helps in framing but also in
implementing the market strategies.
3. Determining consumer needs and wants
Marketing has become customer-centric. However, large-scale production needs intermediaries
for mass distribution. Due to prevalence of multi channels of distribution, there is an information
gap. Marketing research helps in collecting information on consumers from structured distribution
research and helps in making marketing customer oriented.
4. For effective communication mix
In an era of micro- rather than mass-marketing, communication plays a vital role. Marketing
research uses promotional research to study media mix, advertising effectiveness and integrated
communication tools. Research on such aspects will help in promoting effectively a company’s
product in the market.
 5. Improving selling activities
Marketing research is used to analyse and evaluate performances of a company within a market.
It also studies effectiveness of a sales force. It helps in identifying sales territories. Such
information helps the companies in identifying areas of shortcoming in sales. It also examines
alternative methods for distribution of goods.
6. For sales forecasting
The most challenging task for any production manager is to keep optimum levels of inventory.
However, production is undertaken in anticipation of demand. Therefore, scientific forecast of
sales is required. Marketing research helps in sales forecasting by using market share method,
sales force estimate method and jury method. This can also help in fixing sales quotas and
marketing plans.
7. To revitalize brands
Marketing research is used to study and find out the existing brand position. It finds out the recall
value of brands. It explores the possibilities of brand extension or prospects of changing existing
brand names. The main purpose of marketing is to create brand loyalty. Marketing research helps
in developing techniques to popularize and retain brand loyalty.
8. To facilitate smooth introduction of new products
Marketing research helps in testing the new products in one or two markets on a small scale. This
helps in finding out consumer response to new product and develop a suitable marketing mix. It
reveals the problems of the customers regarding new products. Thus, it controls the risk involved
in introducing a new product.
9. Determine export potentials
The development in transport and communication has helped in globalization and digitalization of
world trade. This has helped in boosting the growth of international markets. Marketing research
helps in conducting market survey for export. It. collects information on marketing environment
prevailing in a country. By collecting data on consumers from different countries, it indicates export
potentials.
10. Managerial decision-making
Marketing research plays a vital role in the decision-making processes by supplying relevant, up-
to-date and accurate data to the decision-makers. Managers need up-to-date information to
access customer needs and wants, market situation, technological change and extent of
competition.
Marketing Research Process
To begin with the marketing research, following steps has to be followed:
1. Define the Problem
The foremost decision that every firm has to undertake is to find out the problem for which the
research is to be conducted. The problem must be defined adequately because if it is too vague,
then it may result in the wastage of scarce resources and if it is too narrow, then the exact
conclusion cannot be drawn. In order to define the problem appropriately, each firm must have a
clear answer to the questions viz. What is to be researched (content and the scope)? And Why the
research is to be done (decisions that are to be made)?
 2. Develop the Research Plan
This step involves gathering the information relevant to the research objective. It includes:
(a) Data Sources: The researcher can collect the data pertaining to the research problem from
either the primary source or the secondary source or both the sources of information. The primary
source is the first-hand data that does not exist in any books or research reports whereas the
secondary data is the second-hand data which is available in the books, journals, reports, etc.
(b) Research Approaches: The Secondary data are readily available in books, journals,
magazines, reports, online, etc. But the primary data have to be collected and to do so, the
following research can be conducted:
 Observational Research: The researcher can collect the information by just observing the
happenings in the market and sometimes having a friendly conversation with the customers
to know about their purchase experiences.
 Ethnographic Research: It is one of the forms of an observation research where the
researcher studies an individual in the real-life situation and not under any market setup or
a lab. The purpose of this research is to know the way people live (their lifestyles), What
they do to earn their livelihood, how they consume goods and services, what they need in
their personal and professional lives etc.
 Focus Group Research: It is a form of group discussion wherein six to ten people gather
and discuss the common topic given by the moderator. A moderator is a person who
conducts the group discussion and is skilled in group dynamics. He also keeps the
discussion focused on the topic so that relevant information can be obtained from the group
members.
 Survey Research: These are the descriptive research generally conducted to know the
about the customer’s knowledge about the product, their preferences, and satisfaction level.
The best way to conduct surveys is through the Questionnaires.
 Behavioural Data: The customer’s actual purchases at the store reflects its behavior and
the choice of products. Thus observing what customers are buying gives more accurate
information about the customer rather than the planned answers given by them in the
surveys.
 Experimental research: This is done to find out the cause and effect relationships. This
research is undertaken to study the effects of change in the customer’s behavior due to the
change in the product’s attributes.
(c) Sampling plan: Once the research approach is decided, the researcher has to design a
sampling plan and have to decide on the following:
 The sampling Unit i.e. whom, shall we survey?
 The sample size, i.e., How many units in the population shall be surveyed?
 The sampling procedure, i.e. How the respondents shall be chosen?
(d) Contact Methods: The researcher has to choose the medium through which the respondents
can be contacted. The respondents can be reached via emails, telephone, in person or online.
3. Collect the Information
This is one of the most expensive methods of marketing research. At this stage, the researcher
has to adopt the methods to collect the information, he may find it difficult to gather the correct
information because of the respondent’s biasedness, unwillingness to give answers or not at
home.
4. Analyze the Information
Once the information is collected the next step is to organize it in such a way that some analysis
can be obtained. The researchers apply several statistical techniques to perform the analysis,
such as they compute averages and measures of dispersion. Also, some advanced decision
models are used to analyze the data.
5. Present the Findings
Finally, all the findings and the research are shown to the top management level viz. Managing
director, CEO, or board of directors to make the marketing decisions in line with the research.
6. Make the Decision
This is the last step of the marketing research, once the findings are presented to the top level
management it is up to them either to rely on the findings and take decisions or discard the
findings as unsuitable.
Thus, marketing research is done to gather all the relevant information about the market and
design the marketing strategies accordingly.
Scope of Marketing Research
The scope of marketing research stretches from the identification of consumer wants and needs to
the evaluation of consumer satisfaction. It comprises of research relating to consumers, products,
sales, distribution, advertising, pricing and sales forecasting. A clear view of the scope marketing
research may be obtained by the following classification of marketing research activity.
The whole approach of marketing pivots around the tenet of meeting the consumer wants. It is
essential to understand what the consumer wants, how he/she perceives the product (service),
what exactly (ideally) does he/she wants to derive out of the product (service), how does he/she
make the brand choice decision, what are the sources of information and influence processes, etc.
In order to take decisions any marketer would constantly monitor such information and obtain a
continuous feedback of the trends in the market. As such, marketing research is an effective tool
for measuring the consumers’ aspirations, trade channel behaviour, competitive actions etc.
It provides a linkage between the corporate environment and the marketing organization.
Marketing research, thus, may be viewed as an important tool used as an aid for tackling problems
in marketing.
Characteristics of an industry analysis
Industry analysis is a type of investment research that begins by focusing on the status of an
industry or an industrial sector. A form of fundamental analysis involving the process of making
investment decisions based on the different stages an industry is at during a given point in time.
The type of position taken will depend on firm specific characteristics, as well as where the
industry is at in its life cycle.
Industry Life Cycle Analysis
Many industrial economists believe that the development of almost every industry may be
analyzed in terms of following stages:
 Pioneering stage: New technologies like personal computers or wireless communication
portray the initial stages of an industry. At this stage, it is very difficult to anticipate which
firms will succeed; some firms will be a total success while some might fail completely.
Hence, the risk involved in selecting any specific firm in the industry is quite high at this
stage. However, at this stage, since the new product has not yet flooded its market, there
will be a rapid growth in sales and earnings at industry level. Like, for example, in 1980’s,
personal computers were a part of very few houses, while on the other hand, products like
fans or even refrigerators were part of almost every household. So naturally, the growth rate
of products like refrigerators will be much less.
 Rapid growth stage: Once the product has proved itself in the market, several leaders in
the industry start surfacing. The start-up stage survivors become more stable and market
share can be easily envisaged. Thus, the performance of the industry in general will be
more minutely tracked by the performance of the firms that have survived. As the product
breaks through the market place and is used commonly, the growth rate of the industry is
still faster than the rest of economy.
 Maturity and stabilization stage: The product has attained the full aptitude to be
consumed at this stage by the users. So, any growth from this point just tracks the growth
of the economy in general. At this stage, as the product gets more and more standardized,
it compels the producers to compete heavily on price basis. As a result, the profit margins
are lowered and add to the pressure on profits. Most often, firms at this stage are referred
to as cash cows as their cash flows are quite consistent but offer very little opportunity for
growth of profit. Instead of reinvesting the cash flows in the company, they are best milked
from.
4. Decline stage: In this stage following features are identified.
 Costs become counter-optimal
 Sales volume decline or stabilize
 Prices, profitability diminish
 Profit becomes more a challenge of production/distribution efficiency than increased sales.
Characteristics of An Industry Analysis
In an industry analysis, the following key characteristics should be considered by the analyst.
These are explained as below:
 Post sales and Earnings performance: The historical performance of sales and earnings
should be given due consideration, to know how the industry have reacted in the past. With
the knowledge and understanding of the reasons of the past behaviour, the investor can
assess the relative magnitude of performance in future. The cost structure of an industry is
also an important factor to look into. The higher the cost component, the higher the sales
volume necessary to achieve the firm’s break-even point, and vice-versa.
 Nature of Competition: The top firms in the industry must be analyzed. The demand of
particular product, its profitability and price of concerned company scrip’s also determine
the nature of competition. The investor should analyze the scrip and should compare it with
 other companies. If too many firms are present in the industry, this will lead to a decline in
price of the product.
 Raw Material and Inputs: We need to have a look on industries which are dependent on
raw material. An industry which has limited supply of raw material will have a less growth.
Labor in also an input and problems with labor will also lead to growth difficulties.
 Attitude of Government towards Industry: The government policy with regard to granting
of clearance, installed capacity and reservation of the products for small industry etc. are
also factors to be considered for industry analysis.
 Management: An industry with many problems may be well managed, if the promoters and
the management are efficient. The management has to be assessed in terms of their
capabilities, popularity, honesty and integrity. A good management also ensures that the
future expansion plans are put on sound basis.
 Labor Conditions and Other Industrial Problems: The industries which depend on labor,
the possibility of strike looms as an important factor to be reckoned with. Certain industries
with problems of marketing like high storage costs, high transport costs etc leads to poor
growth potential and investors have to careful in investing in such companies.
 Nature of Product Line: The position of industry in the different stages of the life cycle is to
be noted. And the importance attached by planning commission on these industries
assessment is to be studied.
 Capacity Installed and Utilized: If the demand is rising as expected and market is good
for the products, the utilization of capacity will be higher, leading to bright prospects and
higher profitability. If the quality of the product is poor, competition is high and there are
other constraints to the availability of inputs and there are labor problems, then the capacity
utilization will be low and profitability will be poor.
 Industry Share Price Relative to Industry Earnings: While making investment the current
price of securities in the industry, their risk and returns they promise is considered. If the
price is very high relative to future earnings growth, the investment in these securities is not
wise. Conversely, if future prospects are dim but prices are low relative to fairly level future
patterns of earnings, the stocks in this industry might be an attractive investment.
 Research and Development: The proper research and development activities help in
increasing economy of an industry and so while investing in an industry, the expenditure
should also be considered.
 Pollution Standards: These are very high and restricted in the industrial sector. These
differ from industry to industry, for example, in leather, chemical and pharmaceutical
industries the industrial effluents are more.
Competitive Analysis
A competitive analysis identifies your competitors and evaluates their strategies to
determine strengths and weaknesses relative to your brand. A competitive analysis often
includes a SWOT analysis that helps the marketer define a competitive marketing plan.
A competitive analysis is a critical part of your company marketing plan. With this
evaluation, you can establish what makes your product or service unique–and therefore
what attributes you play up in order to attract your target market.
 Evaluate your competitors by placing them in strategic groups according to how directly
they compete for a share of the customer’s dollar. For each competitor or strategic group,
list their product or service, its profitability, growth pattern, marketing objectives and
assumptions, current and past strategies, organizational and cost structure, strengths and
weaknesses, and size (in sales) of the competitor’s business. Answer questions such as:
 Who are your competitors?
 What products or services do they sell?
 What is each competitor’s market share?
 What are their past strategies?
 What are their current strategies?
 What type of media are used to market their products or services?
 How many hours per week do they purchase to advertise through the media used in this
market?
 What are each competitor’s strengths and weaknesses?
 What potential threats do your competitors pose?
 What potential opportunities do they make available for you?
A quick and easy way to compare your product or service with similar ones on the market is
to make a competition grid. Down the left side of a piece of paper, write the names of four
or five products or services that compete with yours. To help you generate this list, think of
what your customers would buy if they didn’t buy your product or service.
Need of Competitive Analysis
Knowing how your competition acts and thinks can have a major impact on your own
business. If you’re competing for the same market share, you need to know how they’re
acquiring business and what you might be able to do to win some of your own.
When conducted the right way, your analysis can help you find potential gaps in the market
and create new products or services to fill them. In doing so, you can make your marketing
more effective and potentially stay ahead of your competitors (or at the very least, have a
greater ability to shift faster when they change up their strategy).
Entrepreneurs agonize over how they can differentiate their service or product offering, and
a competitive analysis is arguably your best opportunity. By identifying holes or weaknesses
in your competitors’ strategies, you can better tailor your own strategy to pick up where they
leave off.
Today’s technology has made it easier than ever to do intelligent recon on the competition
and collect trustworthy data. Let’s look at what’s involved in the process and how you can
conduct your own competitor’s analysis like a pro.
Benefits of competitive analysis
Competitive analysis should be viewed as an ongoing process whereby your company
continues to understand the strengths, weaknesses, opportunities and threats in relation to
your competition. Most businesses already gather information about their competition, but
 many small business owners don’t recognise it as competitive analysis. The difference is
the quality of information that is gained or lost by hiring an outside source. In our mind, the
most important thing to take away is to recognise that any information about your
competition is considered competitive analysis and to think about it in those terms.
There are a series of business benefits you can gain by having insight into the competitive
landscape, particularly if you track products, prices, staffing, research and development,
and other aspects of the competition on an ongoing basis. “This is so a business can
understand the external and internal environments they’re operating in,” says Ken Garrison,
chief executive officer of the Society of Competitive Intelligence Professionals (SCIP).
There are quite a few benefits to be gained by having specific insight into the landscape of
your niche market, especially if information is itemised. For example, if your company sells
computer monitors, tracking your competitions products offered, price points, staff levels,
social media traffic and promotion scheduling might offer significant insight into their
company over a year and even more insight over a five year period.
The following are benefits that can be gleaned from conducting competitive analysis:
 Understanding the market
 Better targeting customers
 Market potential forecasting
 Economic climate tracking
 Competitor product tracking
 Competitor pricing
 Tertiary market possibilities
 Customer acquisition
Identifying Competitors
Competitive research is the backbone of a strong marketing strategy. After all, if you can’t
identify your competitors and their marketing tactics, you’ll struggle to differentiate yourself
and your product from the crowd.
But how do marketers identify their primary competitors and their strategies? Here is our
five-step strategy for how to identify your competitors, research your competition, and
channel it into powerful marketing that meets your customers needs.
Finding your competitors doesn’t have to be taxing or complicated. The first step to finding
your competitors is to differentiate between your direct and indirect competition.
Direct Competition
Direct competition is a term that refers to the companies or publishers who sell or market
the same products as your business. Your customers will often evaluate both you and your
direct competitors before making a purchase decision or converting.
Indirect Competition
Indirect competition is a term that refers to the companies or publishers that don’t sell or
market the same products, but are in competition with your business digitally. They may
 write the same type of content as you and be competing for the same keywords. In short,
they are competing for your customers’ attention.
How to Identify Direct Competitors?
When identifying competitors who are in direct competition to your business, you’ll want to
start with your product. A thorough understanding of your product and the value it provides
to your audience or customers is crucial to identifying your direct competition.
If you work for a sneaker brand, for example, you are not simply in competition with other
sneaker brands. You’re also in competition with large shoe retailers, and any other brands
and business that are creating footwear. Only by looking at your product and evaluating its
value (you need to know not just that your sneakers cover and protect feet, for example, but
also that people might evaluate them for durability, athletic use, and style), will you realize
the full scope of your competition.
A few effective techniques for identifying direct competitors:
1. Market Research
Take a look at the market for your product and evaluate which other companies are selling
a product that would compete with yours. Talk to your sales team and find out which
competitors they see come up often in their sales process. From there, you’ll be able to
take a closer look at those companies, their product and marketing efforts, and create
strategies to outperform them.
2. Solicit Customer Feedback
Again, your customers are the key to unlocking your direct competitors. Once they’ve
decided on your business and product, you can ask them which other businesses/products
they were evaluating. Customers often reveal unexpected competitors that aren’t even on
your radar.
n addition, during the sales process your sales team can also ask your potential customers
which businesses they are considering. If they haven’t decided on your product yet, your
team will be able to speak to their needs better if you know which businesses or products
they are considering.
3. Check Online Communities on Social Media or Community Forums
In this day and age, your potential customers will often seek out advice and
recommendations on social media sites and apps, or on community forums like Quora or
Reddit. By investigating the conversations your customers have on these websites, you’ll
be able to further identify your competitors.
This is especially true for any marketers speaking to millennial audiences. Research by
Deloitte shows that 50% of millennials report that a recommendation from a friend or family
member has a high influence on their buying decision. And 27% of both millennials and Gen
Z feel an online recommendation from someone in their social media circle has a high
influence on their buying decisions.
How to Identify Indirect Competitors?
Your indirect competitors have just as much influence on your selling process as your direct
competitors. In fact, because your indirect competitors are often writing content that
 competes with yours, they have an even greater effect on potential customers in the early
stages of the buyer’s journey. So how do you discover them?
1. Keyword Research
Keyword research is the best way to identify your indirect competition. By conducting a
competitive SEO analysis, you can determine which businesses or publishers are
competing for space on Google. After all, many of your customers are looking for your
products and solutions by typing them into search engines. For today’s marketer, that
means that you’re in competition not only with your direct competitors but with every other
website competing for keywords important for your business.
If you are currently using an SEO platform or technology, you may find that your SEO
technology can help you identify competitors with data and insights. For example,
Conductor Searchlight can provide a high-level look at the keywords your direct competition
is targeting. It also can tell you which websites are ranking for a keyword important your
business. These represent your indirect competitors.
Keyword research can really help you when looking to identify your competitors in business.
If you’re working manually, check out our guide to scoping out your competition through
keyword research, A Step-By-Step Guide to Competitive Analysis.
2. Analyzing Google’s Search Engine Results Page
When it comes down to it, many of your indirect competitors are writing about topics close
to your value proposition. If you examine the value proposition of your product, you’ll be
able to identify keywords that are central to your product or offering. From there, type the
keywords into Google and see who is competing with your content on search engines.
Anyone writing content around your value proposition, represents a person, blog, business,
publication, or organization that is the indirect competition of your business.
3. Take a Look at Paid Data
If you’ve taken the first two steps on this list, step three should be a breeze. Head into
AdWords and scan those keywords that are important to your business. Is there a lot of
competition for any of those keywords? If there is, check out which businesses or websites
are purchasing ads for those keywords. If websites are paying for paid space on the search
engine results page for a keyword, they’re competing with your content for space on
Google.
How to Identify Marketing Opportunities Based on Competitor Research?
After you’ve identified your competitors, you’ll want to identify marketing opportunities so
you can start outperforming them.
Again, at this stage, keyword research can really help you decide where to put your efforts.
If your competitors are targeting specific keywords with their content, where is there
opportunity to outperform them? Are they implementing a particularly strong keyword
strategy? What insights can you glean from that?
Similarly, by looking at your competitor’s social media presence, you can evaluate where
they’re focusing their attention and efforts. From there, you can look toward opportunities to
either compete with them directly for attention around specific topics or questions, or
 differentiate your approach by looking for gaps in their content or new angles to approach
questions your audience is posing.
Lastly, you can always go back to paid data. If your indirect or direct competitors are putting
money behind ads, you can be sure those keywords represent important business
initiatives. This will also provide insight into where your competition is placing their efforts
and money. From there, it’s up to you to craft marketing strategies to compete.
Market Segmentation
Segmentation refers to a process of bifurcating or dividing a large unit into various small
units which have more or less similar or related characteristics.
Market Segmentation
 Market segmentation is a marketing concept which divides the complete market set up into
smaller subsets comprising of consumers with a similar taste, demand and preference.
 A market segment is a small unit within a large market comprising of like minded
individuals.
 One market segment is totally distinct from the other segment.
 A market segment comprises of individuals who think on the same lines and have similar
interests.
 The individuals from the same segment respond in a similar way to the fluctuations in the
market.
Basis of Market Segmentation
Gender
The marketers divide the market into smaller segments based on gender. Both men and
women have different interests and preferences, and thus the need for segmentation.
Organizations need to have different marketing strategies for men which would obviously
not work in case of females.
A woman would not purchase a product meant for males and vice a versa.
The segmentation of the market as per the gender is important in many industries like
cosmetics, footwear, jewellery and apparel industries.
Age Group
Division on the basis of age group of the target audience is also one of the ways of market
segmentation.
The products and marketing strategies for teenagers would obviously be different than kids.
Age group (0 – 10 years) – Toys, Nappies, Baby Food, Prams
Age Group (10 – 20 years) – Toys, Apparels, Books, School Bags
Age group (20 years and above) – Cosmetics, Anti-Ageing Products, Magazines, apparels
and so on
Income
 Marketers divide the consumers into small segments as per their income. Individuals are
classified into segments according to their monthly earnings.
The three categories are:
High income Group
Mid Income Group
Low Income Group
Stores catering to the higher income group would have different range of products and
strategies as compared to stores which target the lower income group.
Pantaloon, Carrefour, Shopper’s stop target the high income group as compared to Vishal
Retail, Reliance Retail or Big bazaar who cater to the individuals belonging to the lower
income segment.
Marital Status
Market segmentation can also be as per the marital status of the individuals. Travel
agencies would not have similar holiday packages for bachelors and married couples.
Occupation
Office goers would have different needs as compared to school / college students.
A beach house shirt or a funky T Shirt would have no takers in a Zodiac Store as it caters
specifically to the professionals.
Types of Market Segmentation
 Psychographic segmentation
The basis of such segmentation is the lifestyle of the individuals. The individual’s attitude,
interest, value help the marketers to classify them into small groups.
 Behaviouralistic Segmentation
The loyalties of the customers towards a particular brand help the marketers to classify
them into smaller groups, each group comprising of individuals loyal towards a particular
brand.
 Geographic Segmentation
Geographic segmentation refers to the classification of market into various geographical
areas. A marketer can’t have similar strategies for individuals living at different places.
Nestle promotes Nescafe all through the year in cold states of the country as compared to
places which have well defined summer and winter season.
McDonald’s in India does not sell beef products as it is strictly against the religious beliefs
of the countrymen, whereas McDonald’s in US freely sells and promotes beef products.
Not all individuals have similar needs. A male and a female would have varied interests
and liking towards different products. A kid would not require something which an adult
needs. A school kid would have a different requirement than an office goer. Market
Segmentation helps the marketers to bring together individuals with similar choices and
interests on a common platform.
 Market Segmentation helps the marketers to devise appropriate marketing strategies and
promotional schemes according to the tastes of the individuals of a particular market
segment. A male model would look out of place in an advertisement promoting female
products. The marketers must be able to relate their products to the target segments.
 Market segmentation helps the marketers to understand the needs of the target audience
and adopt specific marketing plans accordingly. Organizations can adopt a more focussed
approach as a result of market segmentation.
 Market segmentation also gives the customers a clear view of what to buy and what not to
buy. A Rado or Omega watch would have no takers amongst the lower income group as
they cater to the premium segment. College students seldom go to a Zodiac or Van Heusen
store as the merchandise offered by these stores are meant mostly for the professionals.
Individuals from the lower income group never use a Blackberry. In simpler words, the
segmentation process goes a long way in influencing the buying decision of the consumers.
An individual with low income would obviously prefer a Nano or Alto instead of Mercedes or
BMW.
 Market segmentation helps the organizations to target the right product to the right
customers at the right time. Geographical segmentation classifies consumers according to
their locations. A grocery store in colder states of the country would stock coffee all through
the year as compared to places which have defined winter and summer seasons.
 Segmentation helps the organizations to know and understand their customers better.
Organizations can now reach a wider audience and promote their products more effectively.
It helps the organizations to concentrate their hard work on the target audience and get
suitable results.
Steps in Market Segmentation
1. Identify the target market
The first and foremost step is to identify the target market. The marketers must be very
clear about who all should be included in a common segment. Make sure the individuals
have something in common. A male and a female can’t be included in one segment as they
have different needs and expectations.
Burberry stocks separate merchandise for both men and women. The management is very
clear on the target market and has separate strategies for product promotion amongst both
the segments.
A Garnier men’s deodorant would obviously not sell if the company uses a female model to
create awareness.
Segmentation helps the organizations decide on the marketing strategies and promotional
schemes.
Maruti Suzuki has adopted a focused approach and wisely created segments within a large
market to promote their cars.
Lower Income Group – Maruti 800, Alto
Middle Income Group – Wagon R, Swift, Swift Dzire, Ritz
High Income Group – Maruti Suzuki Kizashi, Suzuki Grand Vitara
 Suzuki Grand Vitara would obviously have no takers amongst the lower income group.
The target market for Rado, Omega or Tag Heuer is the premium segment as compared to
Maxima or a Sonata watch.
2. Identify expectations of Target Audience
Once the target market is decided, it is essential to find out the needs of the target
audience. The product must meet the expectations of the individuals. The marketer must
interact with the target audience to know more about their interests and demands.
Kellogg’s K special was launched specifically for the individuals who wanted to cut down on
their calorie intake.
Marketing professionals or individuals exposed to sun rays for a long duration need
something which would protect their skin from the harmful effects of sun rays. Keeping this
in mind, many organizations came with the concept of sunscreen lotions and creams with a
sun protection factor especially for men.
3. Create Subgroups
The organizations should ensure their target market is well defined. Create subgroups
within groups for effective results.
Cosmetics for females now come in various categories.
 Creams and Lotions for girls between 20-25 years would focus more on fairness.
 Creams and lotions for girls between 25 to 35 years promise to reduce the signs of ageing.
4. Review the needs of the target audience
It is essential for the marketer to review the needs and preferences of individuals belonging
to each segment and sub-segment. The consumers of a particular segment must respond
to similar fluctuations in the market and similar marketing strategies.
5. Name your market Segment
Give an appropriate name to each segment. It makes implementation of strategies easier.
A kids section can have various segments namely new born, infants, toddlers and so on.
6. Marketing Strategies
Devise relevant strategies to promote brands amongst each segment. Remember you can’t
afford to have same strategies for all the segments. Make sure there is a connect between
the product and the target audience. Advertisements promoting female toiletries can’t afford
to have a male model, else the purpose gets nullified.
A model promoting a sunscreen lotion has to be shown roaming or working in sun for the
desired impact.
7. Review the behavior
Review the behavior of the target audience frequently. It is not necessary individuals would
have the same requirement (demand) all through the year. Demands vary, perceptions
change and interests differ. A detailed study of the target audience is essential.
8. Size of the Target Market
 It is essential to know the target market size. Collect necessary data for the same. It helps
in sales planning and forecasting.
Market Segmentation, Basis of Market Segmentation
Market Segmentation is a critical marketing strategy that involves dividing a broad target
market into smaller, more manageable segments based on shared characteristics. This
process enables businesses to tailor their marketing efforts to meet the specific needs of
different consumer groups. The basis of market segmentation can be categorized into
several key criteria, including demographic, geographic, psychographic, and behavioral
factors.
Demographic Segmentation:
Demographic segmentation is one of the most common bases for segmenting a market. It
divides consumers based on demographic factors such as:
 Age:
Different age groups have distinct needs and preferences. For instance, products aimed at
teenagers, such as trendy clothing, will differ significantly from those aimed at older adults,
like retirement planning services.
 Gender:
Men and women often have different buying behaviors and preferences. Marketers can
tailor their messages and products accordingly. For example, beauty and grooming
products are often marketed differently to men and women.
 Income:
Consumer purchasing power varies significantly across different income levels. Luxury
brands typically target higher-income segments, while budget-friendly products are
designed for lower-income consumers.
 Education Level:
Education can influence consumer preferences and behavior. For instance, products
requiring technical knowledge might be marketed to more educated consumers.
 Family Size and Lifecycle:
Family structures influence purchasing decisions. Marketers can create products that cater
to single individuals, couples, or families with children.
Geographic Segmentation:
Geographic segmentation divides the market based on geographic boundaries. Factors
influencing this type of segmentation include:
 Region:
Different regions may have distinct cultural, economic, and climatic conditions that affect
consumer behavior. For example, winter clothing is more relevant in colder regions
compared to warmer ones.
 Urban vs. Rural:
 Consumer needs and behaviors can vary significantly between urban and rural areas.
Urban consumers might prefer convenience products, while rural consumers might favor
traditional, locally sourced goods.
 Climate:
Climate can influence product usage and preferences. For instance, summer clothing and
outdoor equipment may be marketed differently in tropical regions than in colder climates.
Psychographic Segmentation:
Psychographic segmentation focuses on the psychological aspects of consumer behavior,
including values, interests, lifestyles, and personality traits. Key factors:
 Lifestyle:
Consumers’ lifestyles influence their purchasing decisions. For instance, health-conscious
consumers might be targeted with organic food products and fitness-related services.
 Personality:
Different personality traits can affect consumer preferences. Brands often position
themselves to resonate with certain personality types. For example, adventurous brands
may appeal to thrill-seekers.
 Values and Beliefs:
Consumers’ values and beliefs significantly impact their buying behavior. Brands that align
with specific values, such as sustainability or social responsibility, can attract consumers
who prioritize these attributes.
Behavioral Segmentation:
Behavioral segmentation divides the market based on consumer behaviors and interactions
with a product or brand. Factors influencing behavioral segmentation:
 Purchase Occasion:
Consumers may buy products based on specific occasions, such as holidays, birthdays, or
back-to-school season. Marketers can create campaigns that align with these occasions to
boost sales.
 Benefits Sought:
Different consumers seek different benefits from the same product. For example, in the
toothpaste market, some consumers may prioritize whitening, while others may focus on
cavity protection.
 Usage Rate:
Consumers can be segmented based on their usage patterns. Heavy users, moderate
users, and light users may all have different needs and responses to marketing efforts.
 Loyalty Status:
Consumers exhibit varying degrees of brand loyalty. Marketers can target brand advocates
with loyalty programs while trying to convert occasional buyers into loyal customers.
Technological Segmentation:
 With the rise of digital marketing, technological segmentation has emerged as an important
basis. This involves categorizing consumers based on their technology usage and
preferences:
 Device Usage:
Consumers may prefer different devices (smartphones, tablets, laptops) for accessing
information and making purchases. Marketers can optimize their content for specific
devices.
 Digital Behavior:
Online consumer behavior, such as browsing habits and social media engagement, can
provide insights into segmentation. Marketers can tailor their strategies based on how
consumers interact with digital platforms.
Firmographic Segmentation (for B2B Markets):
In B2B (business-to-business) marketing, firms can be segmented based on organizational
characteristics:
 Industry:
Businesses in different industries have unique needs and challenges. For instance,
software solutions for healthcare providers will differ from those designed for retail
businesses.
 Company Size:
The size of a business influences purchasing decisions. Large enterprises may require
more complex solutions compared to small businesses.
 Location:
Geographical factors also play a role in B2B segmentation, with regional market dynamics
impacting business decisions.
 Business Model:
Companies can be categorized based on their operational models (B2B, B2C, C2C),
influencing how products or services are marketed.
Multi-Dimensional Segmentation:
Increasingly, businesses are adopting multi-dimensional segmentation approaches that
combine various bases to create more refined segments. This method acknowledges that
consumers may belong to multiple segments simultaneously. For example, a company may
target health-conscious, urban consumers with high incomes who prioritize convenience.
By utilizing a multi-dimensional approach, marketers can create highly tailored campaigns
that resonate with specific audience segments.
Marketing Plan
A marketing plan may be part of an overall business plan. Solid marketing strategy is the
foundation of a well-written marketing plan so that goals may be achieved. While a
marketing plan contains a list of actions, without a sound strategic foundation, it is of little
use to a business.
A marketing plan is a comprehensive document or blueprint that outlines the advertising
and marketing efforts for the coming year. It describes business activities involved in
accomplishing specific marketing objectives within a set time frame. A marketing plan also
includes a description of the current marketing position of a business, a discussion of the
target market and a description of the marketing mix that a business will use to achieve
their marketing goals. A marketing plan has a formal structure, but can be used as a formal
or informal document which makes it very flexible. It contains some historical data, future
predictions, and methods or strategies to achieve the marketing objectives. Marketing plans
start with the identification of customer needs through a market research and how the
business can satisfy these needs while generating an acceptable return. This includes
processes such as market situation analysis, action programs, budgets, sales forecasts,
strategies and projected financial statements. A marketing plan can also be described as a
technique that helps a business to decide on the best use of its resources to achieve
corporate objectives. It can also contain a full analysis of the strengths and weaknesses of
a company, its organization and its products.
The marketing plan shows the step or actions that will be utilized in order to achieve the
plan goals. For example, a marketing plan may include a strategy to increase the
business’s market share by fifteen percent. The marketing plan would then outline the
objectives that need to be achieved in order to reach the fifteen percent increase in the
business market share. The marketing plan can be used to describe the methods of
applying a company’s marketing resources to fulfill marketing objectives. Marketing
planning segments the markets, identifies the market position, forecast the market size, and
plans a viable market share within each market segment. Marketing planning can also be
used to prepare a detailed case for introducing a new product, revamping current marketing
strategies for an existing product or put together a company marketing plan to be included
in the company corporate or business plan.
Outline
A marketing plan should be based on where a company needs to be at some point in the
future. These are some of the most important things that companies need when developing
a marketing plan:
Market research: Gathering and classifying data about the market the organization is
currently in. Examining the market dynamics, patterns, customers, and the current sales
volume for the industry as a whole.
Competition: The marketing plan should identify the organization’s competition. The plan
should describe how the organization will stick out from its competition and what it will do to
become a market leader.
Market plan strategies: Developing the marketing and promotion strategies that the
organization will use. Such strategies may include advertising, direct marketing, training
programs, trade shows, website, etc.
Marketing plan budget: Strategies identified in the marketing plan should be within the
budget. Top managers need to revise what they hope to accomplish with the marketing
plan, review their current financial situation, and then allocate funding for the marketing
plan.
Marketing goals: The marketing plan should include attainable marketing goals. For
example, one goal might be to increase the current client base by 100 over a three-month
period.
Marketing Mix: The marketing plan should evaluate the appropriate marketing mix. This
includes setting up the marketing 4 P’s the product, price, place, and promotion. These four
elements are modified until the best combination have been found that will cater the needs
of the product’s customer that would result to the maximum profitability of the company.
Monitoring of the marketing plan results: The marketing plan should include the process
of analyzing the current position of the organization. The organization needs to identify the
strategies that are working and those that are not working.
Purpose
One of the main purposes of developing a marketing plan is to set the company on a
specific path in marketing. The marketing goals normally aligns itself to the broader
company objectives. For example, a new company looking to grow their business will
generally have a marketing plan that emphasizes strategies to increase their customer
base. Acquiring marketing share, increasing customer awareness, and building a favorable
business image are some of the objectives that can be related to marketing planning. The
marketing plan also helps layout the necessary budget and resources needed to achieve
the goals stated in the marketing plan. The marketing plan shows what the company is
intended to accomplish within the budget and also to make it possible for company
executives to assess potential return on the investment of marketing dollars. Different
aspects of the marketing plan relate to accountability.
The marketing plan is a general responsibility from company leaders and the marketing
staff to take the company in a specific direction. After the strategies are laid out and the
tasks are developed, each task is assigned to a person or a team for implementation. The
assigned roles allow companies to keep track of their milestones and communicate with the
teams during the implementation process. Having a marketing plan helps company leaders
to develop and keep an eye on the expectations for their functional areas. For example, if a
company’s marketing plan goal is to increase sales growth then the company leaders may
have to increase their sales staff in stores to help generate more sales.
The marketing plan offers a unique opportunity for a productive discussion between
employees and leaders of an organization. It provides good communication within the
company. The marketing plan also allows the marketing team to examine their past
decisions and understand their results in order to better prepare for the future. It also lets
the marketing team to observe and study the environment that they are operating in.
Marketing planning aims and objectives
Though it’s not clear, behind the corporate objectives, which in themselves offer the main
context for the marketing plan, will lie the “corporate mission,” in turn provides the context
for these corporate objectives. In a sales-oriented organization, the marketing planning
function designs incentive pay plans to not only motivate and reward frontline staff fairly but
also to align marketing activities with corporate mission. The marketing plan basically aims
to make the business provide the solution with the awareness with the expected customers.
This “corporate mission” can be thought of as a definition of what the organization is, or
what it does: “Our business is …”. This definition should not be too narrow, or it will constrict
the development of the organization; a too rigorous concentration on the view that “We are
in the business of making meat-scales,” as IBM was during the early 1900s, might have
limited its subsequent development into other areas. On the other hand, it should not be too
wide or it will become meaningless; “We want to make a profit” is not too helpful in
developing specific plans.
The marketing objectives must usually be based, above all, on the organization’s financial
objectives; converting these financial measurements into the related marketing
measurements. He went on to explain his view of the role of “policies,” with which strategy
is most often confused: “Policies are rules or guidelines that express the ‘limits’ within which
action should occur. “Simplifying somewhat, marketing strategies can be seen as the
means, or “game plan,” by which marketing objectives will be achieved and, in the
framework that appears here, are generally concerned with the 8 P’s. Examples are:
Price: The amount of money needed to buy products
Product: The actual product
Promotion (advertising): Getting the product known
Placement: Where the product is sold
People: Represent the business
Physical environment: The ambiance, mood, or tone of the environment
Process: The Value-added services that differentiate the product from the competition (e.g.
after-sales service, warranties)
Packaging: How the product will be protected
The most important element is, the detailed plans, which spell out exactly what programs
and individual activities will carry at the period of the plan (usually over the next year).
Without these activities the plan cannot be monitored. These plans must therefore be:
Clear: They should be an unambiguous statement of ‘exactly’ what is to be done.
Quantified: The predicted outcome of each activity should be, as far as possible,
quantified, so that its performance can be monitored.
Focused: The temptation to proliferate activities beyond the numbers which can be
realistically controlled should be avoided. The 80:20 Rule applies in this context too.
Realistic: They should be achievable.
Agreed: Those who are to implement them should be committed to them, and agree that
they are achievable. The resulting plans should become a working document which will
guide the campaigns taking place throughout the organization over the period of the plan. If
the marketing plan is to work, every exception to it (throughout the year) must be
questioned; and the lessons learnt, to be incorporated in the next year’s.
Content of the marketing plan
A Marketing Plan for a small business typically includes Small Business Administration
Description of competitors, including the level of demand for the product or service and the
strengths and weaknesses of competitors
 1. Description of the product or service, including special features
2. Marketing budget, including the advertising and promotional plan
3. Description of the business location, including advantages and disadvantages for marketing
4. Pricing strategy
5. Market Segmentation
Medium-sized and large organizations
The main contents of a marketing plan are:
1. Executive Summary
2. Situational Analysis
3. Opportunities / Issue Analysis: SWOT Analysis
4. Objectives
5. Marketing Strategy
6. Action Program (the operational marketing plan itself for the period under review)
7. Financial Forecast
8. Controls
Marketing Strategy, Importance, Components, Types, Steps, Challenges
Marketing Strategy is a comprehensive plan designed to promote a business’s products or
services, achieve its objectives, and build a sustainable competitive advantage. It aligns
with the organization’s overall mission and vision, ensuring that resources are used
effectively to meet customer needs and market demands. By integrating insights,
innovation, and planning, marketing strategies help businesses grow, engage with their
target audience, and adapt to changing market conditions.
Importance of Marketing Strategy
 Provides Direction
A clear marketing strategy ensures all marketing activities align with organizational goals,
reducing ambiguity and fostering coordinated efforts.
 Builds Competitive Advantage
A well-designed strategy differentiates a brand in the market, highlighting unique value
propositions that attract and retain customers.
 Enhances Resource Utilization
By focusing on specific target markets, businesses can optimize resource allocation,
reducing costs and maximizing returns.
 Improves Customer Engagement
A customer-focused strategy ensures that messaging, product development, and
promotional efforts resonate with the target audience, fostering loyalty.
 Facilitates Measurable Results
A strategy outlines goals and metrics, enabling businesses to track performance and make
data-driven adjustments.
Components of a Marketing Strategy
1. Target Market
Identifying and understanding the specific group of customers a business intends to serve
is the foundation of any marketing strategy. This includes demographic, geographic,
psychographic, and behavioral segmentation.
2. Value Proposition
A value proposition defines the unique benefits a product or service offers, explaining why it
is better than competitors. It forms the core message of the marketing strategy.
3. Marketing Mix (4Ps)
 Product: What the business offers to meet customer needs.
 Price: The cost customers pay, which should reflect the value provided.
 Place: How and where the product is distributed to reach customers.
 Promotion: Communication strategies to inform, persuade, and remind customers
about the product.
4. Positioning
Positioning creates a unique space in the customer’s mind, ensuring the product stands
out. It reflects how the business wants its offering to be perceived in relation to competitors.
5. Goals and Objectives
Marketing strategies are guided by SMART goals (Specific, Measurable, Achievable,
Relevant, and Time-bound). Examples include increasing market share, boosting sales, or
enhancing brand awareness.
6. Metrics and KPIs
Key performance indicators (KPIs) help track the success of a marketing strategy, such as
customer acquisition cost, conversion rates, and ROI.
Types of Marketing Strategies:
 Content Marketing
Focuses on creating and sharing valuable, relevant content to attract and retain customers.
Examples include blogs, videos, and infographics.
 Digital Marketing
Utilizes online platforms like social media, search engines, and email to connect with
customers. Digital marketing offers precise targeting and measurable results.
 Product Differentiation Strategy
Highlights unique features or benefits of a product to distinguish it from competitors.
 Cost Leadership Strategy
Focuses on being the low-cost provider in the market while maintaining acceptable quality.
 Customer Relationship Strategy
Emphasizes building long-term relationships with customers through personalized service,
loyalty programs, and CRM tools.
 Market Penetration Strategy
Involves increasing market share in existing markets through aggressive pricing,
promotions, or distribution.
 Diversification Strategy
Expands into new markets or develops new products to reduce dependency on existing
offerings.
Steps to Develop a Marketing Strategy:
1. Analyze the Market
 Conduct SWOT Analysis to evaluate internal strengths and weaknesses alongside external
opportunities and threats.
 Perform PESTLE Analysis (Political, Economic, Social, Technological, Legal,
Environmental) to understand macro-environmental factors.
 Study competitors’ strengths, weaknesses, pricing strategies, and market positioning.
2. Define Target Audience
 Segment the market based on demographics, behavior, and preferences.
 Create buyer personas to represent ideal customers, detailing their challenges, goals, and
motivations.
3. Set Clear Goals
 Examples include:
 Increasing website traffic by 20% in six months.
 Boosting brand awareness through social media campaigns.
 Expanding into a new geographic market.
4. Craft a Value Proposition
 Clearly articulate what makes the product or service unique and how it benefits the target
audience.
5. Select Marketing Channels
Choose the most effective channels based on the audience’s preferences. These may
include:
 Digital Channels: Social media, email, SEO, PPC ads.
 Traditional Channels: Print media, television, events.
6. Develop the Marketing Mix (4Ps)
 Optimize product features, set competitive pricing, ensure wide distribution, and design
compelling promotions.
7. Budget Allocation
Allocate resources for advertising, content creation, technology, and personnel. Ensure
alignment with projected ROI.
8. Implementation
 Launch campaigns and coordinate across departments for seamless execution.
 Use project management tools to assign tasks and track progress.
9. Monitor and Adjust
 Use analytics tools to measure performance against KPIs.
 Adjust strategies based on insights to improve outcomes.
Examples of Marketing Strategies in Action
1. Apple: Focuses on premium branding, innovation, and creating an ecosystem of products
that work seamlessly together.
2. Coca-Cola: Builds an emotional connection with consumers through storytelling,
memorable campaigns, and global outreach.
3. Amazon: Combines customer-centric approaches with technological innovation and cost
leadership to dominate the e-commerce market.
Challenges in Marketing Strategy:
1. Rapid Technological Changes: Keeping up with advancements and adopting the latest
tools can be challenging.
2. Intense Competition: Businesses must consistently innovate to differentiate themselves.
3. Data Privacy Issues: Adhering to regulations like GDPR while leveraging customer data
requires careful planning.
4. Economic Uncertainty: Fluctuating market conditions can disrupt strategies.