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Sales and Marketing in Tamil Nadu

Technical Report · February 2022

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 Phase IV Programme

Sales and Marketing

INDEX
Page No.

1. About this Program 2

2. Objective of this Program 3
3. Schedule 4
4. Contents 5
 SALES & MARKETING

About this Programme

EDII promotes entrepreneurship through training and mentoring. EDII conducts

Entrepreneurship Awareness Camp as a Phase I training programme. This is followed
by Business Model and Business Plan Training as Phase II training. Promotion of Start
up, entrepreneurial and cluster development activities in the State is done through
various types trainings conducted for Students, Professionals, prospective and
existing entrepreneurs in a life cycle approach and promoting innovation through
Innovation and Incubation Schemes.

Topic

New Entrepreneur cum Enterprise Development Scheme.

What You will Learn

Sales and Marketing training aims to teach the participants the fundamentals of
Marketing, Sales Promotion Techniques, creative ways to market product, lead
Generation, Product Pricing and branding, Market Survey, its Process, techniques,
model questionnaire
 Objective of the Programme

What it Aims

The training aims to explain the Marketing and Sales Techniques, lead Generation,
Product Pricing and branding, Market Survey, its Process, techniques and model
questionnaire.

Methodology
The training pattern will be class room lecture in Tamil with PPTs, Case Study, Games, and
Question and Answer.

Who will Benefit

Aspiring MSME Entrepreneurs of both the Genders who are planning to start a MSME activity
and existing MSME units intending to increase the sales.

Time
Half a day days training

Course Fee
Rs.300/-

Certificate
No Training Certificate is issued.
 GOVT.OF TAMILNADU
ENTREPRENEURSHIP DEVELOPMENT &
INNOVATION INSTITUTE
EKKATTUTHANGAL, CHENNAI 600032
Ph.044-22252081/22252082
e-mail: tc2@editn.in

Sales and Marketing – Phase IV Training Programme

Session Timings:(I) 10.00-11.30 hrs::(II) 11.45-13.15 hrs

Date Session Faculty/ Contact
Topic
No.
I

Introduction about EDII-TN

Marketing & Branding
 Fundamentals of Marketing
 Sales Promotion Techniques
 How does entrepreneur market his product
 20 creative ways to market product
 Government Support to Marketing by MSMEs
 Lead Generation
 Distribution Channels
 Product Pricing
 Branding

II Market Study
 Market Survey & its Process
 Primary and Secondary Sources of Information
 Market Survey Techniques
 Marketing Research: 10 Tips to be Effective.
 Model Questionnaire for Market Survey 
Consumers, Supplier, Manufacturers and
Competitors, For Information on Raw Materials,
For Information on Machinery & Equipment
 Go to Market Report
 Introduction about EDII-TN

Entrepreneurship Development and Innovation Institute (EDII), Chennai was

established in 2001 as an apex organisation in the field of entrepreneurship education
and self-employment promotion in the state of Tamil Nadu. EDII was constituted by
Government of Tamil Nadu as a society and is administered by Department of Micro,
Small and Medium Enterprises (MSME) and is headed by the Director of the Institute.
Its Main functions asre
1. AWARENESS GENERATION, TRAINING & WORKSHOPS
Entrepreneurship Awareness is provided to public and students by providing motivation
to start a business, by teaching methods of selecting a business activity, by indicating
methods to funding a business and highlighting steps to start a business.
Comprehensive Entrepreneurship Development Protocol for higher education
institutions, such as Colleges, polytechnics, ITIs, Agri, Vet & other Colleges, as below :
Step1: Entrepreneurship awareness & Business Opportunitiesworkshops in first stage,
Step2: Selection of entreprising and willing students to undergo a EDP & Innovation
course in the second stage and
Step3: Organise Business plan preparation camp only for students who are able to
cross Step2
Step4: Incubation &support services (physical & virtual) for launched businesses &
scale-ups
Life cycle approach to training for enterpreneurship by which entrepreneurs will get
support for knowledge or facilitation at every point of the life cycle of the business.
Pre-business stage:
Business opportunities workshops & webinars in sectors relevant to each district with
help of Industry associations, DIC and a nodal educational institution.
Business plan preparation camps : for entrepreneurs willing to commence businesses
and ready to prepare business plans including access to finance
Regular EDP training after sanction of loans on how to run business to enable smooth
start up
Post Launch stage:
Post launch workshops for enterpreneurs within 3 months in batches of 30 at district
level to assess progress, identify issues and provide support or advisories.
Post launch business acceleration & scale up courses based on need on various
specific topics :
Workshops for expansion/diversification in various sectors by way of Crash courses on
key topics of generic nature & sector specific E& M-Commerce & Digital Marketing Lab.
Webinars on specific topics in early & mid life stage of enterprises, Training courses &
advisory services for MSMEs to raise funds in the capital markets. (eg. BSE SME
Exchange, VCFs, AFs)

2. BUSINESS FACILITATION SERVICES

• Entrepreneurs Clinic / Help Desk :: will provide support and advisories at every stage
of the business life cycle using a call centre manned by domain experts @ EDII via
chat, telephone and email as well as direct oneon-one interaction @ EDII campus
• Mentorship program – online registration & monitoring : An online State network of
high quality willing mentors will be created, from existing entrepreneur networks and
successful entrepreneurs in every district. Mentors registering online will be screened
and rated based on performance criteria by entrepreneurs.
• Online Learning Portal : in Tamil and English with various self learning modules
based on evolving market for those who are unable to attend EDII courses directly,
such as those who are employed. Curriculum will be delivered to all aspiring
entrepreneurs at no cost.
3. COMMUNICATIONS & ENVIRONMENT BUILDING
• Periodic TV Media programs on entrepreneurs & innovation : to enhance the social
status of successful entrepreneurs and attract youth to business as the most sought
after career. Building partnerships with TV, electronic and print media to run
sponsored and non-sposnored programs on entrepreneurship & innovation.
• Document and circulate successful Entrepreneurship and Innovation videos : to
document successes and enable faster spread of the entrepreneurial culture based on
sharing of success and failure stories.These documents will be shared through EDII
webpages, youtube and used in training classes for motivation
• National Entrepreneurship Week celebrations: across the State highlight entrepreneur
achievements, recognise business champions and disseminate experience
• Annual State and District Level awards: for outstanding start-ups & innovations to
recognise and motivate innovators and good entrepreneurs
• Communications & Outreach: through weekly E-newsletters & daily Social media
(including Twitter, facebook, push SMS (m-SEVA), Whatsapp, etc.) on
entrepreneurship and innovation will help document, spread and scale up adoption of
best practice

4. INCUBATION
Incubation services, virtual or physical, are known to reduce the failure rates of new
born entreprises. Hence EDII will support formation and building capacities of :
• Rural Business Incubators to identify, document, support and harness innovations of
grass-roots innovators.
• Tech BIs in engineering, medical and other professional technical institutions.
Currently DST funds TBIs in select institutions and this needs to be scaled up.
• Promote Business Incubators in other Institutions running nonprofessional courses
ie., arts & science colleges, ITIs, Polytechnics,etc.,
5. INCLUSIVE DEVELOPMENT
• Special target group training programs: will be given to the inclusion of scheduled
castes & scheduled tribes, minorities, differently abled, etc.,and regionally under-
represented areas including large part of Eastern,Central and and Southern Tamil Nadu
in entrepreneurship training programs
• Special mobilization workshops: in such districts and areas to enroll members of
these groups in the online entrepreneurial ecosystem will also be conducted.
• Special enrolment program for disadvantaged groups: in incubators and mentorship
programs to ensure that support services reach them
• Partnerships & Formation of special support groups: for such disadvantaged
entrepreneurs would help them to gain confidence. eg.Dalit Indian Chamber of
Commerce & Industry, etc. A pool of experts (e.g retired bankers etc.) with prior
experience in handling such groups would be promoted to act as mentors to such
disadvantaged entrepreneurs and help them connect to all related services eg. banks,
regulatory requirements, writing proposals for funding etc.
• Sensitisation on Inclusive development: through regular sensitisation workshops for
key stakeholders like bankers, incubators, trainers, officials, etc., to promote gender
neutral incubation/ accelerator, network of mentors, industry, resource centres and
credit institutes are developed to facilitate Women and other disadvantaged
Entrepreneur groups.

6. MAINSTREAMING ENTREPRENEURSHIP EDUCATION

Training of trainers workshops for College and School Nodal Faculty : would be
organised every year for all engineering, arts and science, agriculture, vet, fisheries,
medical colleges and other colleges, polytechnics, ITIs will be provided with additional
support for re-training of existing faculty to run EACs, establish EDCs to deliver and
support entrepreneurship courses and set up BIs to promote and incubate businesses
by students of all courses.
• Institute-Business Interaction : would be promoted in Arts & Science colleges and
other educational institutions by creating the forum of EDCs to enable teachers to
engage with the private sector and with entrepreneurs and support initiatives that
bring entrepreneurs to educational establishments for interaction with students and
become mentors for student promoted businesses.
• Business case challenge & Social entrepreneurship competitions: would be promoted
in colleges & polytechnics (eg. ENACTUS :http://enactus.org/what-we-do/project-
stories/, CII Innovation http://www.ciiinnovation.in )

7. SUPPORT FOR INNOVATION

• Recognising Innovation: Annual Innovators conference to schow case innovative
designs and Awards for Innovative Products & Services in MSME sector would be
organised in collaboration with NIF and reputed educational institutions.
• IPR campaign: Workshops would be organised peridocially to enable MSMEs to
understand how to benefit from IPR and ways to protect IPR. EDi will encourage
innovators, universities and institutions to patent innovative entrepreneurship ideas
and technologies by promoting and strengthening Intellectual Property Rights.
• Innovative Products and Services Online Marketplace: would be designed and
moderated by EDII to showcase MSME innovations and promote their marketing while
ensuring IPR
• Ideation, Product Innovation Conferences (TEDx type): would be organised
periodically at EDII to feature, recognise and document innovative ideas and product
launches.
 MARKETING

Fundamentals of Marketing & Sales Promotion

Marketing is essentially an entrepreneurial function. Every entrepreneur should know that
he is going to market his Product / Services. Marketing means 4-Ps namely Product,
Pricing, Promotion and Packing. The entrepreneur normally plans his marketing.

Small-scale enterprises could successfully adopt with advantage some of the following
techniques of sales promotion.

Direct promotion techniques:

(a) Displays and models.
(b) Advertising.
(c) Publicity.
(d) Sales connected with special events.
(e) Personal selling tactics.
Indirect promotion techniques:
(a) Customer services.
(b) Public relations.
(c) Cordial customer relations.
(d) Appropriate product design/style/packaging,
(e) Goodwill of the community.
The new entrepreneur should make every endeavour to win the support of his
wholesalers and retailers. Wholesalers could be encouraged to handle his product by
offering financial incentives and substantial concessions. Besides, the manufacturer
should actively participate in marketing by maintaining a systematic check on
the effectiveness of his distribution channels. He should also find new markets
for his products and should be able to compete with his fellow- producers.

The National Small Industries Corporation Ltd. (NSIC) has schemes to provide assistance
in marketing the products of SSI sector both at home and abroad. The Corporation
markets products of SSI sector both under the Government Stores Purchase Programme
(to meet the requirements of Govt. departments, Railways, Defence, etc.) and under its
internal marketing programme through consortia approach. SIDCO also provides such
help.

How does a new entrepreneur market the product?

This is an era of globalization and liberalization. The manufacturers have to offer goods
and services of desired quality at optimum cost. Select the right market/consumers
identified at the time of planning the unit. Establish Direct marketing channels or a
network of dealers as per requirement of the product based upon initial survey. Highlight
strengths of the product.

How does one popularise the new product?

You may create awareness among the buyers or consumers about your product's strong
points in order to convince them of the utility of the product. Publicity in various available
forms has to be arranged within the budgetary constraints. Sell your quality, to gain
consumer's confidence. Review consumer feed back. Resort to live demonstration. MSME
/NSIC / SIDCO help in popularising the product through domestic and international trade
fairs/exhibitions.
20 creative ways to market product

Here are 20 creative ways to market a new or existing product on your online store.
Gift Guides
Email Marketing
Affiliate Programs
Land Your Business in the Press
Go Live With Periscope
Pinterest
Pinterest Buyable Pins
Facebook Custom Audiences
Facebook Shop Section
Search Engine Optimization
Uncrate
Referral Marketing
Blogger Outreach
Reddit Advertising
Pop-up Shops
Blogging
Instagram
YouTube
Product Hunt
Run a Contest

Government Support to Marketing by MSMEs

Are there any specialized agencies which offer marketing assistance?

There are Governmental and non-governmental specialised agencies which provide
marketing assistance. NSIC & KVIC / SIDCO are the devoted govt. agencies for providing
marketing assistance to MSME units.
Is there any other assistance offered by NSIC for marketing MSME Product?

Besides promotion of MSME products through exhibitions, NSIC directly markets the
MSME produce in the domestic and overseas market. NSIC also manages a single point
registration scheme for manufacturers for Govt. purchase. Units registered under this
scheme get the benefits of free tender documents and exemption from earnest money
deposit and performance guarantee.

Does any agency help in exhibition of the product?

MSME & NSIC / SIDCO help the micro, small and medium enterprises for exhibiting
products of MSME in the domestic and international exhibition. NSIC officials will take
further session giving more details.

Does any agency help in promoting exports?

ITPO, DGFT, FIEO & Chambers of commerce in different countries Ministry of Commerce
provide assistance in promoting exports. Office of the Development Commissioner
(MSME), Government of India provides financial assistance to micro, small and medium
scale entrepreneurs to display their products in overseas fairs and also for sales-cum-
study tours abroad. Further details will be provided in the sessions on Exports.

Are there any special benefits for exports?

MSME units gets special benefits such as duty draw back, advance licensing for import of
capital goods and raw materials, pre- shipment and post shipment credit against firm
export orders and marketing development assistance. Income tax benefit is available on
exports earning. This will be further covered in the Export Sessions

GeM Portal is an initiative by Government of India in which MSME units are supported to
market their products/ services to Central/ State Government by registering theier
product in a GeM Portal. There will be separate sessions subsequently.
Lead Generation
What is it? - Lead generation is really a blend of sales and marketing in which your
company identifies and reaches out to qualified sales leads, i.e. potential customers for
your products and services. As an analogy, we think of an inverted funnel with the wide
end at the top.
Market research
Inbound marketing (website, blogging, SEO, social media)
Outbound marketing (direct mail, print advertising,media advertising, outdoor
advertising)
Telesales/Telemarketing - a team of callers reach out to targeted lists of potential
customers
These tactics should be integrated into a coherent plan, the goal of which is to prepare
opportunities for your sales team. There are 2 sessions in the afternoon on this subject
Sales
Once a qualified sales lead has been identified, it's up to the sales team to contact that
person and, ultimately, close the sale. The more information available from sales leads,
the easier it is to convert them to customers. Ideally your sales funnel has familiarized
leads with your offerings and "warmed them up" to a purchase decision. There are
many ways to close a sale, and each sales person has a personal "style". There are
some tried and true methods that most successful sales people employ. Your
organization may employ sales consulting, sales training or outsourced sales to find the
best sales effectiveness solution.

Where do the lines get blurred?

The issue is that modern sales and marketing are no longer siloed, departmental
activities. Consumers have changed, requiring a more hands-on, referral-based
approach. Direct sales and marketing tactics are now being replaced by online shopping
and social media. Today's sales person must also be a marketer and a customer service
rep, because consumers insist on a one-to-one relationship before they will buy.
Distribution Channels
A distribution channel is the route through which goods or services move from the
company to the customer or the transfer of payment happens from the customer to the
company.
Distribution channels can mean selling of products directly or selling through
wholesalers, retailers etc. The same applies for payment transfer from customers to
company; it can move through a path or can be sent directly to the company.
Functions of Distribution Channels
Distribution channels basically function to deliver goods from the manufacturer to the
customer.
The following are the functions of distribution channels −
Facilitate selling by being physically close to customers
Gather information about potential and current customer competitions, other factors
and forces of the environment
Provide distributional efficiency by bridging the gap between the manufacturer and the
user efficiently and economically
Assemble products into assortments to meet buyers’ needs
Match segments of supply with segments of demand
Assist in sales promotion
Assist in introducing new products
Assist in implementing the price mechanism
Assist in developing sales forecast
Provide market intelligence and feedback
Maintain records
Take care of liaison requirements
Standardize transaction
Objectives of Distribution Channels
Objectives of a distribution channel are planned as per the target of the enterprise and
executed respectively. The following are the various objectives behind the planning of
distribution channels −

To ensure availability of products at the point of sale

To build channel member’s loyalty
To stimulate channel members to put greater selling efforts
To develop management efficiency in channel organization
To identify the organization at the level
To have an efficient and effective distribution system for making the products and
services available readily, regularly, equitably and fresh.

Major Channels of Distribution Here is a list of some of the major channels of

distribution −
Manufacturer → Consumer
Manufacturer → Retailer → Customer
Manufacturer → Wholesaler → Customer
Manufacturer → Wholesaler → Retailer → Customer
Manufacturer → Agent → Retailer → Customer
Manufacturer → Agent → Wholesaler → Customer
Manufacturer → Agent → Wholesaler → Retailer → Customer
Profit distribution decreases as the channel length increases.
Designing Distribution Channels
We have seen what a distribution channel is. Let us now see the designing process of a
distribution channel. The following steps are involved in the designing of a channel
system −

Formulating the channel objectives

Identifying the functions to be performed by the channel
Analyzing the product and linking the channel design to the product characteristics
Evaluating the distribution environment, including legal aspects
Evaluating competitor’s channel designs
Evaluating company resources and matching the channel design to the resources
Generating alternative designs, evaluating them and selecting the one that suits the
firm best

Classification of Wholesalers
A wholesaler purchases from the manufacturer and further distributes the product to
customers or retailers. Wholesalers can be classified into the following categories as per
area of functioning −

Merchant wholesalers
Agents and brokers
Manufacturer’s sales branches and offices
 Pricing a Product

Definition: To establish a selling price for a product

No matter what type of product you sell, the price you charge your customers or clients
will have a direct effect on the success of your business. Though pricing strategies can
be complex, the basic rules of pricing are straightforward:

All prices must cover costs and profits.

The most effective way to lower prices is to lower costs.
Review prices frequently to assure that they reflect the dynamics of cost, market
demand, response to the competition, and profit objectives.
Prices must be established to assure sales.
Before setting a price for your product, you have to know the costs of running your
business. If the price for your product or service doesn't cover costs, your cash flow will
be cumulatively negative, you'll exhaust your financial resources, and your business will
ultimately fail.

To determine how much it costs to run your business, include property and/or
equipment leases, loan repayments, inventory, utilities, financing costs, and
salaries/wages/commissions. Don't forget to add the costs of markdowns, shortages,
damaged merchandise, employee discounts, cost of goods sold, and desired profits to
your list of operating expenses. Most important is to add profit in your calculation of
costs. Treat profit as a fixed cost, like a loan payment or payroll, since none of us is in
business to break even.

Because pricing decisions require time and market research, the strategy of many
business owners is to set prices once and "hope for the best." However, such a policy
risks profits that are elusive or not as high as they could be.
When is the right time to review your prices? Do so if: You introduce a new product or
product line; Your costs change; You decide to enter a new market; Your competitors
change their prices; The economy experiences either inflation or recession; Your sales
strategy changes; or Your customers are making more money because of your product.
Prices are generally established in one of four ways:

Cost-Plus Pricing

Many manufacturers use cost-plus pricing. The key to being successful with this method
is making sure that the "plus" figure not only covers all overhead but generates the
percentage of profit you require as well. If your overhead figure is not accurate, you
risk profits that are too low. The following sample calculation should help you grasp the
concept of cost-plus pricing:

Cost of materials Rs. 50.00

+ Cost of labor 30.00
+ Overhead 40.00
= Total cost Rs.120.00
+ Desired profit (20% on sales) 30.00
= Required sale price Rs. 150.00

Demand Price
Demand pricing is determined by the optimum combination of volume and profit.
Products usually sold through different sources at different prices--retailers, discount
chains, wholesalers, or direct mail marketers--are examples of goods whose price is
determined by demand. A wholesaler might buy greater quantities than a retailer, which
results in purchasing at a lower unit price. The wholesaler profits from a greater volume
of sales of a product priced lower than that of the retailer. The retailer typically pays
more per unit because he or she are unable to purchase, stock, and sell as great a
quantity of product as a wholesaler does. This is why retailers charge higher prices to
customers. Demand pricing is difficult to master because you must correctly calculate
beforehand what price will generate the optimum relation of profit to volume.

Competitive Pricing
Competitive pricing is generally used when there's an established market price for a
particular product or service. If all your competitors are charging $100 for a
replacement windshield, for example, that's what you should charge. Competitive
pricing is used most often within markets with commodity products, those that are
difficult to differentiate from another. If there's a major market player, commonly
referred to as the market leader, that company will often set the price that other,
smaller companies within that same market will be compelled to follow.

To use competitive pricing effectively, know the prices each competitor has established.
Then figure out your optimum price and decide, based on direct comparison, whether
you can defend the prices you've set. Should you wish to charge more than your
competitors, be able to make a case for a higher price, such as providing a superior
customer service or warranty policy. Before making a final commitment to your prices,
make sure you know the level of price awareness within the market.

If you use competitive pricing to set the fees for a service business, be aware that
unlike a situation in which several companies are selling essentially the same products,
services vary widely from one firm to another. As a result, you can charge a higher fee
for a superior service and still be considered competitive within your market.

Markup Pricing
Used by manufacturers, wholesalers, and retailers, a markup is calculated by adding a
set amount to the cost of a product, which results in the price charged to the customer.
For example, if the cost of the product is Rs.100 and your selling price is Rs. 140, the
markup would be Rs.40.

This pricing method often generates confusion--not to mention lost profits--among

many first-time small-business owners because markup (expressed as a percentage of
cost) is often confused with gross margin (expressed as a percentage of selling price).
The next section discusses the difference in markup and margin in greater depth.

Pricing Basics
To price products, you need to get familiar with pricing structures, especially the
difference between margin and markup. As mentioned, every product must be priced to
cover its production or wholesale cost, freight charges, a proportionate share of
overhead (fixed and variable operating expenses), and a reasonable profit. Factors such
as high overhead (particularly when renting in prime mall or shopping center locations),
unpredictable insurance rates, shrinkage (shoplifting, employee or other theft, shippers'
mistakes), seasonality, shifts in wholesale or raw material, increases in product costs
and freight expenses, and sales or discounts will all affect the final pricing.
Overhead Expenses. Overhead refers to all nonlabor expenses required to operate your
business. These expenses are either fixed or variable:

Fixed expenses. No matter what the volume of sales is, these costs must be met every
month. Fixed expenses include rent or mortgage payments, depreciation on fixed assets
(such as cars and office equipment), salaries and associated payroll costs, liability and
other insurance, utilities, membership dues and subscriptions (which can sometimes be
affected by sales volume), and legal and accounting costs. These expenses do not
change, regardless of whether a company's revenue goes up or down.

Variable expenses. Most so-called variable expenses are really semivariable expenses
that fluctuate from month to month in relation to sales and other factors, such as
promotional efforts, change of season, and variations in the prices of supplies and
services. Fitting into this category are expenses for telephone, office supplies (the more
business, the greater the use of these items), printing, packaging, mailing, advertising,
and promotion. When estimating variable expenses, use an average figure based on an
estimate of the yearly total.

Cost of Goods Sold. Cost of goods sold, also known as cost of sales, refers to your cost
to purchase products for resale or to your cost to manufacture products. Freight and
delivery charges are customarily included in this figure. Accountants segregate cost of
goods on an operating statement because it provides a measure of gross-profit margin
when compared with sales, an important yardstick for measuring the business'
profitability. Expressed as a percentage of total sales, cost of goods varies from one
type of business to another.

Normally, the cost of goods sold bears a close relationship to sales. It will fluctuate,
however, if increases in the prices paid for merchandise cannot be offset by increases in
sales prices, or if special bargain purchases increase profit margins. These situations
seldom make a large percentage change in the relationship between cost of goods sold
and sales, making cost of goods sold a semi-variable expense.

Determining Margin. Margin, or gross margin, is the difference between total sales and
the cost of those sales. For example: If total sales equals Rs.1,000 and cost of sales
equals Rs.300, then the margin equals Rs.700.

When all operating expenses (rent, salaries, utilities, insurance, advertising, and so on)
and other expenses are deducted from the gross-profit margin, the remainder is net
profit before taxes. If the gross-profit margin is not sufficiently large, there will be little
or no net profit from sales.
Some businesses require a higher gross-profit margin than others to be profitable
because the costs of operating different kinds of businesses vary greatly. If operating
expenses for one type of business are comparatively low, then a lower gross-profit
margin can still yield the owners an acceptable profit.

Branding

Definition: Product branding is a strategy that defines a unique set of marketing

elements to differentiate a given product. It is an activity that defines the way the
product’s image is communicated to its customers.

What Does Product Branding Mean?

Branding policies are established to promote the idea behind the product through logos,
images, designs, colors and many other marketing resources to place the product in the
customer’s mind. Brands transcend company’s environments and the concept can also
be applied to non-profit or government-related institutions where the brand is
associated with a service provided.

These brands are established by institutions according to pre-established criteria. Some

companies have family brands, where a single brand is used for different products
designed for different segments but within a single market.

This is a strategy employed by big companies to create a strong brand around a variety
of segmented products. On the other hand, some institutions choose to brand their
products with the name of their companies, and not a distinctive brand, to build the
product’s image around the company’s reputation. There are also cases where items
are unbranded, as is the case for generic products where brands are not necessarily
important for the customer.

Branding is much more than just a cool logo or a well-placed advertisement. You need
to do more. Your brand is your reputation! In today’s market, a successful brand has to
be consistent in communication and experience, across many applications such as
Environment (storefront or office), Print collateral, signage, packaging, Website & online
advertising, Content publishing, Sales & customer service, Internal (with employees).

The truth is: branding doesn’t happen overnight…or even in a few months. Building a
brand is definitely a process.
There are four questions you should ask yourself when defining a brand purpose such
as

Why do you exist? What differentiates you? What problem do you solve? Why should
people care?

Then you should Research your main competitors or benchmark brands. For instance,
study how well they have gone about building a brand name. For a brand name to be
effective, it needs to be easy for consumers to recognize and remember.

When brand building, keep in mind who exactly you are trying to reach. You’ll tailor
your mission and message to meet their exact needs. You’ll come to realize that the
competitive advantage when branding your business is to narrow your target audience
focus. This can help ensure that your brand message comes across crystal clear to the
intended recipient. When branding your business, start small and remember to focus on
your target niche audience first. With time, your brand loyalty may grow enough to
expand your reach.

The most exciting (and arguably the most important piece) of the brand building
process, is to create a brand logo and tagline for your company. This logo will appear
on everything that relates to your business. It will become your identity, calling card,
and the visual recognition of your promise. So be willing to invest the time and money
by creating something exceptional to reinforce the visual identity for your business. A
strong brand style should include the things such as Logo size and placement, Color
palette, Typography and fonts, Iconography, Photography/image style and Web
elements.

Finally Integrate your brand into every aspect of your business.

 DAY 3 – Evening 2 Sessions

Market Study

A market survey is a valuable tool to help minimize risks and increase the probability of
success. However, that doesn't mean it is a sure-shot way to eliminate risk and
guarantee complete success. You should undertake market assessment by a survey
before you finalize marketing plans for your product or service. This chapter aims to
explain what a market survey is and how to conduct it.

Markets are changing rapidly, becoming complex and competitive. It is difficult to keep
pace with the rapidly changing demand and supply patterns as an entrepreneur is
unable to respond quickly to a new environment. He needs better market
understanding and a market survey puts him in contact with the market. A systematic
use of this tool can reduce risks in decision-making.

WHAT IS A MARKET SURVEY?

A market survey is an objective and systematic collection, recording, analysis and

interpretation of data about existing or potential markets for a product/service. This
definition will be better understood by looking at the objectives of a market survey.
During a market survey, one needs to focus on:
• Size of the market and the anticipated market share in terms of volume and
value
• Pattern of demand - seasonal or fluctuating in time (in a month, day, etc)
• Market structure
• Buying habits and motives of buyers
• Unique selling proposition of certain products/services
• Past and present trends affecting the selected product or similar product

PROCESS OF CONDUCTING A MARKET SURVEY

A systematic 5-point process is involved in a market survey:

1. Defining objectives and specific information needed

• Identifying source to obtain information
• Assessing time and cost for the study
• Working methodology and action plan
2. Selecting a sample size by determining whom to contact and when.

3. Preparing questionnaires for the survey

4. Collecting data and analyzing it

5. Preparing a report, based on analysed data

Primary and Secondary Sources of Information

Conducting a market survey does not always mean contacting people directly. There
may be information in the form of reports, published material or documents of
trade/industry associations. Data may be collected from two sources:
• Primary data sources: Information coming straight from those in the specified
market, e.g. in the toy market, information obtained from toy manufacturers and
traders.
• Secondary data sources: Data existing in reports or published form and may not
have been collected for a specific purpose. Such information can also be had from the
census office, banks, traders and manufacturers' associations or other published data.
E.g. published reports on the ice-cream market.

MARKET SURVEY TECHNIQUES -Schedule of Market Survey

A market survey is not restricted to collecting information on the market for a product,
but also about marketing infrastructure and existing market conditions.
Designing a market survey schedule could fetch a lot of data. Questions may be
designed on these areas:
• Existence of competitors, their products and marketing strategies

• Information on consumers of all types

• Information on competing products/ similar products

• Attitude of existing/potential consumers, including buying preferences, behaviour

etc.
Don’ts of Conducting a Market Survey

• Do not be prejudiced. As an entrepreneur, you must be open-minded and

confident

• Do not be impatient or argumentative. Your objective is to get information

• Do not reveal privileged information to others, for you may lose the trust of your
sources

• Avoid taking notes while discussing. Make notes immediately after an interview.
People are not comfortable if one writes while talking.

• Don't do an interview without preparation and sequencing of questions. Ensure

that the interviewee has time for you.

• Don't approach competitors as "likely competitors" but meet them as potential

clients to get best results.

Marketing Research: 10 Tips to be Effective.

1. Clearly identify the issue/problem that needs to be investigated. See if any

published/secondary sources of information are available for this problem.

2. Based on existing information, check if the problem can be defined or narrowed

down. Further, with this as your basis, write down "terms of reference" for any
subsequent study

3. Try to look at the problems from different angles:

• your own point of view as producer or seller

• customers/consumers' viewpoint as buyer and end users of products/services

• competitors' viewpoint for they may have addressed similar problems

4. Try to remain objective throughout the market research process and check
impulses/gut feeling from totally influencing the research.

5. Prepare schedule in as simple and clear a form as possible.

6. Maintain a tight control on the subject. If other subjects surface during the
research, give them the attention they deserve.

7. Complete the research promptly and maintain confidentiality lest the competitors
hear of it and forge ahead in the market.

8. Be prepared to take necessary action, which the research identifies.

9. Use the research immediately for the good of the enterprise.

10. Review all market research exercise and processes - the lessons learnt and how
can it be improved next time?

Model Questionnaire for Market Survey

For Market Potential

For this, collect data about sources of market information like consumers, suppliers and
manufacturers.

A. Consumers

- What is their annual consumption and requirement?

- What is their present source of supply?

- What is the customer's brand loyalty and preferences about price, quality,
payment terms, etc?

- Are they satisfied with the present product and supply?

- What is their purchasing criteria and purchasing power?

- What is the consumption pattern? (basis to calculate their requirements)

- What could be the future consumption pattern, in quantity and quality due to
technological changes, etc?
- What is the size of the average order, specifications and time and frequency of
their placement?

- Will any government institutions/departments or any company/industry buy the

products? Is it possible to establish linkages with them, and how?
- What is the life of your potential buyer?

- Their age group, sex?

- What geographical area do they live in? Urban, village and which part of the
country?

B. Suppliers (Traders)

- Who are the principal traders in the item, their range of products and business
terms/commissions, etc?
- What is the possibility to trade with them and on what business terms?

- What is the normal stock level maintained and problems in stocking?

- What are future predictions on business conditions?

C. Manufacturers and Competitors

- What is their product range, installed capacity, selling price?

- What are their normal business terms about payment, price, etc?

- What are their salient features, like technical skill, finance, other resources, etc.?

- What are their strengths and weaknesses? (Try to do their SWOT analysis)

- Where do they market and profile of their customers?

 For Information on Raw Materials

• Who are the major manufacturers/suppliers?

• Time required to get raw material after order placement? Supply terms (tax
structure, price, packing, payment, etc)? Cost of transportation?
• What is the standard or minimum order quantity?

• Is raw material freely available or is there a quota system?

• Will any decision/policy affect its availability or price?

For Information on Machinery and Equipment

• Who are the manufacturers/suppliers?

• What capacity, specifications and brands available in market?

• Price of the machine? (Consider all costs - taxes, transport, accessories, etc.)

• What electrical equipment like motors, starters, switches, is needed?

• What performance guarantees/warranties are given? Is the

supplier/manufacturer reputed and reliable?
• The normal repair/maintenance cost per year?

• Spares/parts to be frequently required?

• What quality and maximum output (production) a machine can give?

• Does the supplier train you/staff to acquire skills to operate machinery?

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