INTRODUCTION

Market

A market is a place where buyers and sellers connect for the exchange of goods and services. It can
be a physical or virtual space. According to Heyne (2014), a market refers to a setting for the
exchange of goods and services. However, in business administration, a market is defined as a
specific segment of individuals targeted for the sale of goods and services (Frank et al., 1972).
Similarly, Jensen et al. (2003) describe a market as a defined audience.

Marketing

Marketing is described by several experts as a combination of activities aimed at delivering a

product’s message to create public awareness. Marketing management now involves the effective
and efficient handling of projects. It includes activities such as market research, idea
implementation, product promotion, situation analysis, supply chain management, and post-
purchase evaluation, among others.

Marketing Management

Marketing management focuses on customer satisfaction by identifying consumer needs and

developing products or services to meet those needs. It is a strategic process that aims to fulfill
consumer demands while maximizing profits through efficient management of all marketing
activities. While marketing connects organizations with customers by informing them about their
products and services, marketing management ensures these connections are meaningful and result
in long-term value.

According to Bao and Shanygina (2013), marketing management is a method of identifying what
people want and fulfilling their needs by involving them in the process. This approach allows
organizations to create customer value and build long-term relationships.

“Marketing constitutes a social and managerial progression through which individuals and
collectives achieve their necessities and desires by generating and trading products and value with
others.”
~ Philip Kotler

“Marketing serves as both a functional aspect within an organization and a series of procedures
aimed at crafting, conveying, and dispensing value to clients. It also involves overseeing customer
relationships in ways that benefit both the organization and its stakeholders.”
~ American Marketing Association

“Marketing is getting and keeping the customer.”

~ Theodore Levitt

Traditional Marketing vs. Experiential Marketing

Introduction

Traditional marketing communication channels are no longer sufficient to influence today’s informed
and selective consumers (Prahalad & Ramaswamy, 2003, 2004; Coelho & Santos, 2013). Modern
buyers have developed awareness, experience, and attitudes that influence their purchasing
decisions (Sharma & Sharma, 2011). Therefore, new marketing strategies are needed that impact
every aspect of consumer behavior (Schmitt, 1999).

To meet this need, marketers have adopted experiential marketing—a creative and innovative
approach that connects consumers with brands in more meaningful ways. The goal is to foster brand
loyalty and turn customers into brand evangelists (Pinki, 2013).

Marketing Practices

Schmitt (1999) declared that the experiential marketing revolution would replace the traditional
feature-and-benefit approach. Traditional marketing primarily focused on BTL (Below the Line) and
ATL (Above the Line) strategies—related to promotions and advertisements. However, with the rise
of experiential marketing, the focus has shifted to influencing customers at multiple touchpoints
(Sharma & Sharma, 2011).

Experiential marketing incorporates multi-sensory experiences, including Sense, Think, Feel, Relate,
and Act—which are now considered contemporary marketing mix elements. These elements provide
holistic consumption experiences (Sharma & Sharma, 2011).

Marketing Mix

The term “marketing mix” was first coined by Neil Borden, president of the American Marketing
Association, in 1953. According to McCarthy (1960), Borden (1964), and Van Waterschoot and Van
Den Bulte (1992), the marketing mix is comprised of the 4 Ps:

1. Product
Encompasses needs and opportunities related to design, functionality, technology,
convenience, value, quality, branding, packaging, and product size.

2. Price
Involves selecting a pricing strategy that aligns with the target market’s purchasing capacity.
Numerous pricing strategies have been proposed by researchers such as Dean (1950) and
Spann et al. (2014).

3. Place
Relates to strategies about retail, wholesale, mail order, online platforms, and direct sales.

4. Promotion
Focuses on how to deliver the product message to consumers through various channels.

Additional elements are often added for service-based marketing, including Process, Physical
environment, People, and Positioning (Lovelock et al., 2009).

Advertising

The word advertising comes from the Latin root advertere, meaning "to turn toward" or "to direct
attention."

Borden and Marshall (1971) defined advertising as:

“Activities by which visual or oral messages are addressed to selected publics for the purpose of
informing and influencing them to buy products or services, or to act or respond favorably towards
ideas, people, trademarks, or institutions.”

Kotler (1998) states that advertising involves non-personal communication through paid media
under a clear sponsorship, used to persuade target audiences.

According to Dorothy Cohen (1988):

“Advertising is a business activity employing creative techniques to design persuasive communication

in mass media that promote ideas, goods, and services consistent with advertiser objectives and
consumer satisfaction.”

In India, advertising has played a vital role in shaping customer perceptions. Effective advertising
helps in brand recall, market share expansion, and competitive differentiation (Basuroy, 2022). It is
a central component of Integrated Marketing Communication (IMC) and serves as a cost-effective
way to build brand image and influence public perception.

Advertising Appeals

Pragya Keshari (2013) describes advertising appeals as tools to persuade consumers. These appeals
aim to influence buying behavior by showing benefits and shaping positive perceptions. Advertising
appeals generally connect to Maslow’s hierarchy of needs, such as physiological, safety,
love/belonging, esteem, and self-actualization.

Types of Appeals:

Rational (Cognitive) Appeals

These appeals focus on logical reasoning, product features, utility, function, and benefits
(Chunawalla, 2000). They aim at the audience's thinking process.

Emotional (Affective) Appeals

These appeals target psychological and emotional needs, often driven by feelings rather than logic
(Belch, 2015). They aim to evoke emotions such as love, fear, pride, or humor.

Positive Emotional Appeals

 Love – e.g., baby products highlighting mother’s love

 Family care – hygiene and health-related products

 Attraction – cosmetics and perfumes

 Pride and prestige – luxury cars, jewelry, designer clothes

 Joy and thrill – beverages and snacks

 Humor – fun foods and light-hearted advertisements

Negative Emotional Appeals

These appeals highlight consequences of not using a product—invoking emotions such as:

 Fear
  Anger

 Sadness

 Loneliness

 Jealousy

Often, advertisers use a blend of rational and emotional appeals to craft persuasive, multi-
dimensional messages (Puto and Wells, 1984).

Consumer and Consumer Engagement

A consumer is an individual who purchases or uses goods and services for personal, social, or
household needs (Sternthal & Craig, 1982). While a purchaser may buy for business or institutions, a
consumer primarily buys for personal or family use.

Consumer Engagement (CE)

Engagement is a psychological state resulting from interactive and co-creative experiences with a
brand or product (Brodie et al., 2011). It includes emotional and rational bonds (McEwen, 2004),
which influence purchase decisions.

According to Hollebeek (2011), consumer engagement includes:

 Cognitive Dimension – thought processing, focus, and interest in a brand or product.

 Emotional Dimension – emotional connection such as pride, inspiration, or enjoyment.

 Behavioral Dimension – actions taken, including energy and effort toward engagement with
the brand.

Social media is a key driver of engagement today. Marketers use tools such as:

 Customer reviews

 Loyalty rewards

 Fan clubs

 Cause-related campaigns

Van Doorn et al. (2010) define CE as a “stronger state of connectedness between the customer and
media.” The online context has transformed engagement into a continuous process. Moliner-Tena et
al. (2019) emphasize the need to study CE in this digital age, where involvement, emotional states,
and brand advocacy are key components.

Engagement leads to brand loyalty, repeat purchases, and higher customer lifetime value. It is a
strategic asset in today's competitive marketplace

FMCG sector in India can be classified into the following main sectors (Vyas, 2014):
• Personal
• Household
• Food and Beverages

Other sectors include alcohol, cigarettes, and OTC (over-the-counter) products.

A study on the FMCG sector stated that it is a highly segmented industry with various sub-sectors
such as oral care, soaps, detergents, health and hygiene products, cosmetics, hair care products,
tea, coffee, poultry, cheese, cigarettes, butter, and other packaged food items (Kerry, 2009).

Personal Care: This segment consists of oral care, hair care, skincare, deodorants, perfumes, shoe
care, and other grooming products. The personal care industry is estimated to be valued at USD 4
billion (Vyas, 2014). Personal care also includes cosmetics, bath/shower products, hair oils,
shampoos, hair colours, conditioners, gels, and fragrances. The hair care market is categorized into
various products like hair oils, shampoos, hair colours, conditioners, and styling gels. Similarly, the
skincare segment is growing rapidly, driven by changing lifestyles, increasing disposable incomes,
and greater awareness among consumers regarding personal grooming.

Household: This segment includes fabric wash products, floor cleaners, household cleaners,
detergents, and related items. The demand for household care products has been consistently
increasing at an annual growth rate of 10–11% over the past five years (Vyas, 2014). Factors
contributing to this growth include a rise in disposable income, aggressive advertising, and the
growing popularity of washing machines. In urban areas, consumers now increasingly prefer
detergent powders over traditional soap bars, which is further accelerating the demand.

Food and Beverages: This category includes health drinks, packaged beverages, and bakery items
such as biscuits and cakes, chocolates, ice cream, tea, coffee, branded flour, rice, sugar, and other
staple food products. According to a report by ICAR, the packaged food segment is projected to grow
at a compound annual growth rate (CAGR) of 9% by 2030, with the market being largely dominated
by milk, sweet, and savory snacks.

OTC (Over-the-Counter): Over-the-counter products include non-prescription medicines and

healthcare goods, which are also often considered part of the personal care segment due to their
daily usage and relevance to consumer well-being.