introduction to marketing managemnet

8/13/2019 introduction to marketing managemnet

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MARKETING MANAGEMENTMODULE 1


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Strong sales, no

profitsCustomer-driven

to its core

Each customersexperience is

unique

Provides great

selection, goodvalue,

discovery and

convenience

A true online

community

Discuss ion:Wi ll Amazon .com Surv ive?

CASE
http://www.google.co.in/url?sa=i&rct=j&q=stand+out+from+the+crowd+images&source=images&cd=&cad=rja&docid=Bl4A3Mj-xK4L0M&tbnid=e86hW6gKRQM2nM:&ved=0CAUQjRw&url=http://www.jobsandcareersmag.com/stand-out-from-the-crowd/&ei=YEowUYqyMMnrmAWO34HADQ&bvm=bv.43148975,d.bmk&psig=AFQjCNH9tpmFfuG5K7tgKDHv14l9XpKvIg&ust=1362205660013855


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http://www.google.co.in/url?sa=i&rct=j&q=stand+out+from+the+crowd+images&source=images&cd=&cad=rja&docid=Bl4A3Mj-xK4L0M&tbnid=e86hW6gKRQM2nM:&ved=0CAUQjRw&url=http://www.jobsandcareersmag.com/stand-out-from-the-crowd/&ei=YEowUYqyMMnrmAWO34HADQ&bvm=bv.43148975,d.bmk&psig=AFQjCNH9tpmFfuG5K7tgKDHv14l9XpKvIg&ust=1362205660013855


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WHAT IS MARKETING?

Marketing is managing profitable

customer relationships

Attracting new customers

Retaining and growing current

customers

Capture value in return

Marketing is NOT synonymous with

sales or advertising


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POPULAR DEFINITIONS OF MARKETING

Definition by AMA- Marketing is an organizational functionand a set of processes for creating, communicating anddelivering value to customers and for managing customerrelationships in ways that benefits an organization and itsstakeholder

Marketing is the task of creating, promoting and deliveringgoods and services to consumers and businesses PhilipKotler. He is regarded as the father of Marketing, he addsIt is not enough to satisfy customers, you should delightthem.


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POPULAR DEFINITIONS OF MARKETING

Marketing is the sum total of all business activities whichdeal with the movement of goods and services fromproducers to ultimate users". Hector Lazo, Head of Marketing,University of New York.

Marketing is the act of identifying and meeting human and

social needs. Marketing is the art and science of meeting needs in a

profitable manner.

Social definition: Marketing is a societal process by whichindividuals and groups obtain what they need and wantthrough creating, offering and freely exchanging products andservices of value ,with others.


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The process by which companiescreate value for customers and

build a strong customerrelationships in order tocapture value from customers in

return.


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WHAT IS MARKETING MANAGEMENT?

Marketing management is the

art and science

of choosing target marketsand getting, keeping, and growing

customers through

creating, delivering, and communicatingsuperior customer value.
http://www.google.co.in/url?sa=i&rct=j&q=functions+of+marketing&source=images&cd=&cad=rja&docid=aL5EHtcqWGKi6M&tbnid=48vyZA0qF2oK7M:&ved=0CAUQjRw&url=http://www.gktoday.in/functions-of-marketing/&ei=q64wUZrTKITVkAX_1IH4BQ&bvm=bv.43148975,d.bmk&psig=AFQjCNFbEKbS7yLS9oqWEZJ0uK3Xh57zeQ&ust=1362231299654952


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http://www.google.co.in/url?sa=i&rct=j&q=functions+of+marketing&source=images&cd=&cad=rja&docid=aL5EHtcqWGKi6M&tbnid=48vyZA0qF2oK7M:&ved=0CAUQjRw&url=http://www.gktoday.in/functions-of-marketing/&ei=q64wUZrTKITVkAX_1IH4BQ&bvm=bv.43148975,d.bmk&psig=AFQjCNFbEKbS7yLS9oqWEZJ0uK3Xh57zeQ&ust=1362231299654952


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MARKETING PROCESS MODEL

Understand the market place and customer needs andwants

Design a customer driven marketing strategy

Construct an integrated marketing program that deliverssuperior value

Build profitable relationships and create customer delight

Capture value from customer to create profits andcustomer equity


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WHAT CAN BE MARKETED?

Goods

ServicesExperiences

Events

Persons

Places

PropertiesOrganizations

Information

Ideas


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Goods


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EVENTS

Advertisers prefer IPL over team India


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PERSONS


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PLACES


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PROPERTIES


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ORGANIZATIONS


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INFORMATION


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IMPORTANCE OF MARKETING IN

MODERN BUSINESS

Marketing was once only a Company department performing a staff

function

Marketing is now the driving force of all modern organizations and

business.

Marketing precedes all management activities of a new organization or inthe introduction of a new product or market.

With the advent of the Internet and the resulting information revolution,

marketing has become the most important function in customer

relationship management. Most Companies survive and grow by using the

existing customers instead of trying to find new ones.

Internet has made the customers very aware of the competition and have

made them extremely price sensitive. Marketing has to be very

Sophisticated to meet this factor head-on.


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IMPORTANCE OF MARKETING IN

SOCIO-ECONOMIC SYSTEM

Marketing creates utilities:

(Something that makes a product capable of satisfyingwants is its utility)

Form Utility is associated with physical or chemical

changes that make a product more valuable. ( Moreassociated with production not marketing) Eg: A dress designer provides a form utility by converting

design concepts and fabric into wide range of clothing.

Place utilitymakes a product accessible to potentialcustomers where they want it. Eg: Dominos Pizza delivered at your doorsteps

Time utilitymakes a product available when they wantit. Eg: ATM installations by banks


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IMPORTANCE OF MARKETING IN YOUR

LIFE

Marketing is a large partof your daily life.Consumers are exposed tonumber of commercial

messages a day. Studying marketing will

make you a better-informed customer.

Marketing probablyrelates -- directly orindirectly -- to your careeraspirations.


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WHO MARKETS

A Marketeris someone who seeks response (attention, a

purchase, vote etc.) from other party called the prospect.


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NATURE OF MARKETING

Marketing is transaction or exchange -Marketing

can occur anytime a person or organization strive to

exchange something of value with another person

or organization.

Basic objective of marketing is to attract new

customers by promising and offering superior value

To retain and grow current customers by delivering

satisfaction


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EVOLUTION OF MARKETING

The concept of Marketing emerged after Industrial Revolution

(latter part of 1800)

This concept has evolved through three successive stages:

Production era

Sales Era

Marketing Era


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PRODUCTION ERA

Manufacturers in this stage focused on increasing out put while

assuming that customers would seek out and buy reasonably

priced and well made product

Executives with back ground in manufacturing and engineering

shaped the firms strategy

More emphasis was on efficiency and cost control


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SALES ERA

This concept evolved in early 1930s

During this stage managers realized that to sell the product a firm

want to make some promotional activities

This era was characterized by aggressive selling and usage of

unethical practices to sell the product.


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MARKETING ERA

This era began in the mid of 1950s

Companies identified the importance of customer needs and

wants

Marketing activities were directed towards the twin goal

Customer orientation and profitability.


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Some indus tr ies and organizat ions remain at the

produ ct ion -or ientat ion stage.

PRODUCTION ORIENTATION

PRODUCTION ORIENTATION SALES ORIENTATION

Other indu str ies and organizations have progressed only to the

sales-orientatio n stage.

Many indu str ies and organizat ions h ave progressed to the

market ing -or ientat ion stage.

PRODUCTION

ORIENTATION

SALES

ORIENTATION

MARKETING

ORIENTATION

Late 1800s Early 1930s Mid-1950s 1990s

MARKETING MANAGEMENT


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MARKETING MANAGEMENT

PHILOSOPHIES/CONCEPTS/ ORIENTATIONS

Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal Marketing Concept

Consumers favor products that areavailable and highly affordable

Improve production and distribution

Consumers favor products that offerthe most quality, performance, andinnovative features

Consumers will buy products only ifthe company promotes/ sells theseproduct

Focuses on needs/ wants of target

markets & delivering satisfactionbetter than competitors

Focuses on needs/ wants of targetmarkets & delivering superior value

Societys well-being


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PRODUCT CONCEPT

This concept believes that consumers will automatically favor

products that offers the most quality ,performance and

innovative features. Thus the importance is on product

development.

Producers ask "How can the consumer know what is the best

product that can be made?

Danger of Marketing Myopia as expressed by Theodore Lewitt.


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Marketing myopiaasks the companies to dothe following

Be more customer focused

Innovate Be in control

Understand customer desires

Conduct marketing research programs Marketing strategyshould be developed

keeping feedback of customers in mind.
http://www.marketing91.com/strategy/http://www.marketing91.com/strategy/


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MARKETING CONCEPT

View that instead of make-and-Sell, Companies should Sense-and-Respond. So the job is not to find the right customers foryour products but the right product for your customers.

1. Reactive Market orientation: You see the need and you

respond with a product2. Proactive Market orientation: You see a future need and you

respond with a product. So by the time the need arrives in themarket your product is there.


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CHARACTERISTICS OF MARKETING

CONCEPT

First identify the needs of a target segment of the market.

Design the most effective product that best meets therequirements of the consumer.

Unlike the selling concept ,marketing concept focuses on the

needs of the consumer.

Correctly identify the target market and the target marketconsumers needs.

Implement integrated marketing throughout all departments

in the Organization. Aim at profitability by creating superior customer value.


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SOCIETAL MARKETING CONCEPT.

Is marketing concept ethical enough?

Marketing has to be made humane and ecological, hence thesocietal approach

Care should be taken to minimize environmental deterioration,hunger, poverty and moral breakdown

Hence needs to be satisfied in a manner which enhances andpreserves consumers society and societys well being


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SOCIETAL MARKETING CONCEPT

Society(Human Welfare)

Consumers

(Wants)

Company

(Profits)

SocietalMarketing

Concept

MARKETING & SALES CONCEPTS


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MARKETING & SALES CONCEPTS

CONTRASTED

Factory

Existing

Products

Selling

andPromoting

Profits

throughVolume

MarketCustomer

Needs

Integrated

Marketing

Profits

through

Satisfaction

The Selling Concept

The Marketing Concept

StartingPoint

Focus Means Ends


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SELLING VS. MARKETING

Selling Marketing

1.Emphasis is on the

product.2.Company first makes the

product and then

figures out how to sell

it.

1.Emphasis is on

customers wants.2. Company first

determines customers

wants and then figures

out how to make anddeliver a product to

satisfy those wants


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CORE MARKETING CONCEPTS

Needs, wants, and

demands

Target markets,positioning,

segmentation

Offerings andbrands

Value and

satisfaction

Marketingchannels

Supply chain

Competition Marketing

environment


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WHAT ARE CONSUMERS NEEDS,

WANTS AND DEMANDS?

Needs - state of felt deprivation for basic items such asfood and clothing and complex needs such as forbelonging. i.e. I am hungry/thirsty

Wants - form that a human need takes as shaped byculture and individual personality. i.e. I want ahamburger, French fries, and a soft drink

Demands - human wants backed by buying power

i.e. I have money to buy this happy meal.


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TYPES OF DEMAND


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TYPES OF DEMAND

Negative demand : being almost nonexistent due to

Inherently negative nature of the topic. Eg: Birth control products like Nasbandi for which Govt. pays money

to the person.

Non Existent Demand: Consumers are unaware or

uninterested in the product.

Eg: Majority of the farmers are not aware or interested in the modern

methods of farming.

Latent Demand: Huge demand exists for a product that is notyet in existence.

Eg: harmless cigarettes, non polluting cars, sweets which do not causeweight gain or pose problems for diabetic patients.

Solution: Measure demand and produce a new revolutionary product.


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WHAT WILL SATISFY CONSUMERS

NEEDS AND WANTS?

Products - anything that

can be offered to a

market for attention,

acquisition, use or

consumption and that

might satisfy a need or

want.

Services - activities orbenefits offered for salethat are essentially

intangible and dontresult in the ownershipof anything


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Value reflects the perceived tangible and

intangible benefits and costs to the customers.

Ex: your degree from IIM has value as long as its giving

you a job and/or heightened sense of pride (intangible

). In other words customer always does a mental

calculation against cost/benefit for a product.

Ex: you will buy the coke from petty shop at Rs.10 butnot for 300 rupees.

Value increases with quality and servicebut

decreases with price.


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Customer Satisfaction - depends on the products

perceived performance (out come) in delivering

value relative to a buyers expectations.

If performance falls short of expectation the

customer is dissatisfied.

If it matches the customer is satisfied

If it exceeds the customer is delighted.

Ex: you might be satisfied with a Lays pack (Rs.10)

from a petty shop but not the same from a shop

situated near tourist places (Rs.15)


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Exchanges Transactions

RelationshipsBuilding a Marketing

Network Consisting ofThe Company and All

Its SupportingStakeholders

HOW DO CONSUMERS OBTAIN

PRODUCTS AND SERVICES?


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MARKETS

Traditionally market was a physical place wherebuyers and sellers gathered to buy and sell goods

Economists describe markets as a collection of

buyers and sellers who transact over a particularproduct or product class


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WHO PURCHASES PRODUCTS AND

SERVICES?

Market-A placewhere buyers

and sellersmeet to buy orsell products

ActualBuyers

PotentialBuyers


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MARKET PLACE MARKET SPACE


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MARKET PLACE MARKET SPACE.

META MARKET

Market place can be a physical entity (market-store,supermarket etc.)

Market space which is in fact digital cyber space where

products and services are offered and exchanged.

Metamarkets- These are a cluster of complementaryproducts or services that are closely related in the minds of

consumers but are spread across a diverse set of industries

Example: automobile Metamarketconsists of automobile

manufacturers, new and used car dealers, Financing companies,

Insurance companies, Mechanics, Spare parts dealers, Service shops,

auto magazines, classifieds, Auto sites on internet etc.

O G S S


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Suppliers

End UserMarket

MarketingIntermediaries

CompetitorsCompany(Marketer)

Environment

Environment

MODERN MARKETING SYSTEM


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HOLISTIC MARKETING CONCEPT

Four broad themes characterizing holisticmarketing

Relationship Marketing

Integrated Marketing Internal Marketing

Performance Marketing

Financial AccountabilitySocial Responsibility Marketing


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HOLISTIC MARKETING CONCEPT

The holistic marketing concept looks atmarketing as a complex activity andacknowledges that everything matters inmarketing - and that a broad and integrated

perspective is necessary in developing,designing and implementing marketingprograms and activities.

The four components that characterize holisticmarketing are relationship marketing, internalmarketing, integrated marketing, and sociallyresponsive marketing.


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MARKETING MIX

Set of controllable, tactical, marketing toolsthat the firm blends to produce the response it

wants in the target market.

A prominent marketer E. Jerome Mc Carthyproposed a 4Ps classification in 1960, which

would see wide popularity.

THE FOUR PS OF THE MARKETING MIX


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2-11

THE FOUR PSOF THE MARKETING MIX

THE MARKETING MIX


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THE MARKETING MIX

To achieve the companys objective a marketing program

based on the most suitable marketing mix will be drawn up. Marketing mix is made up of the following factors:

Product

Goods and services offered by a company to the target market, tosatisfy needs and wants

The different physical attributes of the products such as design,features, quality, brand name, usage etc

Price

Money value that the consumers have to pay to buy the product orservice

Discounts, allowances, payment periods, credit facilities


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THE FOUR PSOF THE MARKETING MIX

Place Physical distribution activities through which the product

moves from the factory to the customer

Include the aspects of Channels, Coverage (extent), Location,

Transport, inventory and Logistics management

Promotion

activities of personal selling, advertising and communicating

product benefits and attributes to target consumers topersuade them to purchase


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MORE ABOUT PRICING

Pricing is the only mix which generates a turnover forthe organisation

The remaining 3Ps are the variable cost for theorganisation

It costs to produce and design a product, it costs todistribute a product and costs to promote it

Price must support these elements of the mix

Pricing is difficult and must reflect supply anddemand relationship.

MARKETING MIX (4PS)


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PRICE

P

RICIN

G

STR

ATEGIES PENETRATION

SKIMMING

BUNDLE

PSYCHOLOGICAL

COMPETITION

MARKETING MIX (4PS)


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MARKETING MIX (4P S)

PROMOTION

Promotional Mix

Advertising

Personal

Selling

Sales

Promotion

Public Relation

Publicity

Direct

Marketing

A successful product or service means

nothing unless the benefit of such a

service can be communicated clearly to

the target market. An organisations

promotional mix can consist of:

MARKETING MIX (4PS)}PRODUCT


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MARKETING MIX (4P S)}PRODUCT

PRODUCTDECISIONS

BRANDING

QUALITY

FEATURES

BENEFITS

OFFERED

MARKETING MIX (4PS)


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MARKETING MIX (4P S)

PLACE

Manufacturer

Consumers

Manufacturer

Retailer

Consumers

Direct Distribution Indirect Distribution

wholesaler


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ILLUSTRATION- PRODUCT


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ILLUSTRATION- PRODUCT

CHEVROLET SAIL SEDAN

PRODUCT SPECIFICATIONS


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PRODUCT SPECIFICATIONS

VariantsTransmis

sion

Engine

Descripti

on

Mileage

Power ACPower

Steering

Central

LockingCity Highway

1.2 Base

(Petrol)Manual

1199cc

4 Cylinder15.9 18.3

84.8bhp

@

6000rpm

Standard StandardNot

Available

1.2 LS

(Petrol)Manual

1199cc

4 Cylinder15.9 18.3

84.8bhp

@

6000rpm

Standard Standard Standard

1.2 LSABS

(Petrol)

Manual1199cc

4 Cylinder15.9 18.3

84.8bhp@

6000rpm


1.2 LT

ABS

(Petrol)

Manual1199cc

4 Cylinder15.9 18.3

84.8bhp

@

6000rpm


1.3 Base

(Diesel)Manual

1248cc

4 Cylinder18.9 22.1

76.9 @

4000rpmStandard Standard

Not

Available1.3 LS

(Diesel)Manual

1248cc

4 Cylinder18.9 22.1

76.9 @

4000rpmStandard Standard Standard

LS ABS

(Diesel)Manual

1248cc

4 Cylinder18.9 22.1

76.9 @

4000rpmStandard Standard Standard

LT ABS

(Diesel)

Manual1248cc

4 Cylinder

18.9 22.176.9 @

4000rpm


PRICING AND PLACE OFTHE PRODUCT


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THE PRODUCT

Variants New DelhiBangalor

eMumbai Chennai Pune

Hyderaba

dKolkata

1.2 Base (Petrol)

, 18.3 kmpl4,99,000 5,07,871 5,23,750 5,07,871 5,09,785 5,07,871 5,08,787

1.2 LS (Petrol)

18.3 kmpl5,49,300 5,59,065 5,76,549 5,59,065 5,61,173 5,59,065 5,60,022

1.2 LS ABS

(Petrol) 18.3

kmpl

5,75,300 5,85,528 6,03,845 5,85,528 5,87,738 5,85,528 5,86,507

1.3 Base (Diesel)

22.1 kmpl6,29,000 6,40,182 6,60,202 6,40,182 6,42,596 6,40,182 6,41,203

1.2 LT ABS

(Petrol) 18.3 kmpl6,41,550 6,52,955 6,73,371 6,52,955 6,55,415 6,52,955 6,53,986

1.3 LS(Diesel)22.1

kmpl

6,59,300 6,71,021 6,92,003 6,71,021 6,73,550 6,71,021 6,72,066

LS ABS (Diesel)

22.1 kmpl6,85,300 6,97,483 7,19,305 6,92,394 7,00,117 6,97,483 6,98,551

LT ABS (Diesel)

22.1 kmpl

7,51,550 7,64,911 7,88,830 7,64,911 7,67,794 7,64,911 7,66,030


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Starting from

INR

4,99,000

Fuel

efficiency

22.1

kmpl

Max.

Torque

205Nm#

Performance

78

PS+

Safety

2AirbagsTCDi Engine

1248 cc**

COMPETITORS


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COMPETITORS

Maruti Suzuki Swift Dzire Toyota Etios

Tata Manza Club Class

Mahindra Verito Ford Classic

PRODUCT LAUNCH


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PRODUCT LAUNCH

Starting from a price of INR 4.99 lakh (ex showroomDelhi) for the petrol variant all the way up to INR 7.51lakh (ex-showroom Delhi) for the top end dieselvariant.

The Sail sedan is Chevrolet's first entry level sedan to

be introduced this year. Like its smaller hatchbackversion is quite spacious and the added boot (370litres) now makes it a even more practical andaffordable family car.

Powering the new Sail sedan is a 1.2-litre petrol unitdeveloping 86 PS and a 1.3 litre Multijet engine,which develops 78 PS

Claimed fuel efficiency of 22.1 kmpl


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MARKETING ENVIRONMENT The marketing environment consists of actors and

forces outside and inside the organization thataffect managements ability to build and maintainrelationships with target customers.

Environment offers both opportunities and threats.


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Environment scanning isGathering information regarding a companys

external environment

Analyzing itForecasting the trends


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The marketing environment can be divided into two: Microenvironment: actors close to the company that

affect its ability to serve its customers.

Macro environment: larger societal forces that affect themicroenvironment and considered to be beyond the

control of the organization

The Marketing Environment

The Marketing EnvironmentThe Marketing Environment


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Company

Demographic

Economic

Natural

Technological

Political

Cultural

Company

Customers

Intermediaries

Suppliers

Competitors

Publics

INCLUDES:


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MICRO ENVIRONMENT INCLUDES:1. Companys Internal Environment

Includes functional areas such as top

management, finance, and manufacturing,

marketing etc

CONTINUED..


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CONTINUED..

2. SuppliersProvide resources needed to produce goods

and services.

Can influence on the profit of the companyMost marketers treat suppliers like partners

CONTINUED


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3. Marketing Intermediaries They help the company to promote, sell,

and distribute its goods to final buyersResellersagents, dealers, wholesalers etc

Physical distribution firms- warehousing firms,transportation firms

Marketing services agenciesmarketingresearch firms, advertising agencies, mediafirms

Financial intermediariescredit companies,insurance companies

MARKETING RESEARCH


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MARKETING RESEARCH


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CONTINUED


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4. Competitors Must understand competitors strength

Must differentiate firms products and offeringsfrom those of competitors

Competitive strategies should emphasize firmsdistinctive competitive advantage in marketplace

Competition takes place at different levels Direct at the brand/store level

Substitute product/services

CONTINUED.


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5. Customersfive types of markets that purchase a

companys goods and servicesThese are :

International marketsConsumer marketsGovernment MarketsReseller markets

Business Markets

CONTINUED


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6. Publics These are certain group that has an interest

in or impact on an organization's ability toachieve its objectives

Public can facilitate/ slow down the ability ofan organization to accomplish its goals

Most organizations establish public relationsdepartments to plan constructive relationswith various publics


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Financial Public: influence the companys ability to

obtain funds. Banks, investment houses, andstockholders and the major financial publics.

Media Publics: carry news, features, and editorialopinion. They include newspapers, magazines, andradio and television stations.

Government Publics: Management must takegovernment developments into account. Marketersmust often consult the companys lawyers on issues ofproduct safety, truth in advertising etc.

Citizen-Action Publics: A companys marketing

decisions may be questioned by consumerorganizations, environmental groups, minority groups,and others. Its public relations department can help itstay in touch with consumer and citizen groups.


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Local Publics: include neighborhood residents andcommunity organizations. Large companies usuallyappoint a community relations office to deal with thecommunity, attend meetings, answer questions, andcontribute to worthwhile causes.

General Public: A company needs to be concerned aboutthe general publics attitude toward its products andactivities. The publics image of the company affects itsbuying.

Internal Publics: include workers, managers, volunteers,

and the board of directors. Large companies usenewsletters and other means to inform and motivate theirinternal publics. When employees feel good about theircompany , this positive attitude spills over to externalpublics.

THE MICRO-ENVIRONMENT


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THE MICRO ENVIRONMENT

MACRO ENVIRONMENT


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MACRO ENVIRONMENT

Macro environment: larger societal forcesthat affect the microenvironment

Considered to be beyond the control of the

organization

The CompanyThe Companyss MacroenvironmentMacroenvironment


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DEMOGRAPHIC ENVIRONMENT


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The study of human populations in terms of

size, density, location, age, gender, race,occupation, and other statistics.

Marketers have to keep track of changing age

and family structures, geographic populationshifts, educational characteristics, religious

structures etc.

Ex: Increase in working women have created a

good market potential for ready to eat andpackaged foods.


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CHANGING FAMILY SYSTEM


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CHANGING FAMILY SYSTEM

Allen Solly clothing for Indian women-executive

Exclusive Wedding jewelry


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Exclusive Wedding jewelry

ECONOMIC ENVIRONMENT


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Consists of factors that affect consumerpurchasing power and spending patterns.Factors that affect the economic environmentare: Rising Incomes

Trend toward dual-income families is a leading contributor.

Provides more disposable income.

Inflation

Inflation causes consumers to do two things:

1. Decrease brand loyalty to search for lowest prices.

2.Take advantage of discount sales.

To capture Indias growing middle class, TataMotors introduced Tata Nano


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Business Cycle


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A pattern of economic fluctuations that has

four stages:

Boom

Recession

Depression

Recovery

Positive

EconomicIndicators

Time

Stages in the Business Cycle


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Boom Low unemployment and high total income

create high buying power

Recession Rising unemployment reduces total buyingpower; consumer and business spending

decline

Depression Unemployment extremely high, wages andtotal disposable income are very low, and

there is a lack of consumer confidenceRecovery Economy is moving out of recession or

depression towards prosperity

CONTINUED..


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c) Recovery

This is the period when the economy is movingfrom recession to prosperity. At this stage :

Unemployment decreases

Disposable income increases

Organizations concentrate in improving sales and

profits.


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Income DistributionUpper class

Upper Middle class

Middle ClassWorking class

Underclass

NATURAL ENVIRONMENT


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The natural environment involves the natural resources

that are needed as inputs by marketers or those that areaffected by marketing activities.

Green Marketing is a recent trend that has beenadopted by the marketers to promote their product.

Most of the organizations are coming up with eco

friendly products like CFC (chloro fluoro carbon) freerefrigerators, herbal tea, coffee, organic fruits, paperbags.

To save the resources some companies aredemarketing their products.

Ex: Indian Oil Corporation tries to reduce the demandfor its products by airing adv like Save oil Save India

Weather and climatic conditions also createopportunities for marketers by increasing the demandfor soft drinks, woolen clothes, air coolers etc.

Save oil- save India ad campaign by Indian Oil

Electric car by Toyota and Reva


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y y

Environmentally responsible


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FACTORS IMPACTING THE NATURAL

ENVIRONMENT


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ENVIRONMENT

Shortages of Raw Materials

Increased Pollution

Increased Government Intervention

Environmentally Sustainable Strategies

TECHNOLOGICAL ENVIRONMENT


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These are the forces that create new productand market opportunities. Today technologyshapes the lives of human being

Can create new forms of competition andcommunications : ATMs, CD, cellular,internet

Impact how people spend their time

Contributors to the Technological

breakthroughs


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breakthroughs

CONTINUED


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Issues in the Technological Environment1.Rapid Pace of Change

2.High Research & Development Budgets.

3.Focus on Minor Improvements

4.Increased Regulation

The technology has a major impact on businessfunctions that are directly influenced by technology

are product ,price, promotion, distribution

POLITICAL/LEGAL ENVIRONMENT


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/

Marketing decisions are strongly affected bydevelopments in political and legalenvironment .

This includes laws, agencies and groupsthat influence or limit marketing actions.

A stable political system is a must for theeconomic development of a country.

Political and Legal

Environment


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RECENT TRENDS IN THE POLITICAL/LEGAL

ENVIRONMENT


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ENVIRONMENT

1.Increase in business legislation -

business legislation has three major purposes :

a) To protect companies from unfair competition. b)

To protect customers from unfair business practices. c) To protect society from unbridled business

behavior.

2.Increased Emphasis on Ethics and Socially

Responsible Actions.3. Cause related Marketing

SOCIO -CULTURAL ENVIRONMENT


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Socio-Cultural forces refers to the attitudesbeliefs, norms, values, and life style of

individuals in a society.

The cultural environment is made up ofinstitutions and other forces that affect a

societys basic values, perceptions,

preferences and behaviors.

FACTORS AFFECTING THE CULTURAL


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ENVIRONMENT

core cultural values In any society, some cultural values are deep rooted;

they cannot be changed easily. These are termed ascore cultural values.

secondary cultural values There are some values and beliefs which constitute

secondary cultural values; they are moreamendable to change and can be molded andmanipulated relatively.

CONTINUED.


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Existence of subcultureEach society contains subcultures, groups

with shared values emerging from their

special life experience or circumstances.

Members of subculture share common beliefs,

preferences ,and behavior


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Recent trends in social and cultural

environment

Changing roles of men and women

Health and fitness

Impulse buying

convenience

Recent trends in social &cultural environment


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ENVIRONMENTAL SCANNING MONITORING


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This is the process of gathering informationregarding companies external and internal

environment, analyze it and forecast the

impact of whatever trends the analysissuggest.

IMPORTANCE NEED OF ENVIRONMENTAL


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SCANNING 1.Knowledge of marketing environment is

necessary for Marketing Management.

2.Strategic response is possible only with

proper environmental analysis.

3.Spotting the opportunities and threats.

4.Scanning enables the organization to act

upon rather than react to opportunities and

threats.

FACTORS TO BE COVERED IN ENVIRONMENT


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ANALYSIS

1. External macro environment factors

2.External micro environment factors

3.Organizations internal environment

The Importance of Information

The Importance of Information


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Why

InformationIs

Needed

MarketingEnvironment

StrategicPlanning

CustomerNeeds

Competition

Marketing information system


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A marketing information system (MIS)consists of people, equipment, andprocedures to gather, sort, analyze, evaluate,and distribute needed, timely, and accurateinformation to marketing decision makers

Function : Assess , develop and distributeinformation

Components of Marketing Information

system


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system

1.Internal record information

2.Marketing Research

3.Marketing Intelligent System

1.Internal record information


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It includes information gathered fromsources within the company to evaluate

marketing performance and to detect

marketing problems and opportunities.

Ex: Sales records ,customer data bases

etc.

2.Marketing Research


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It can be define as the systematic design,collection, analysis, a specific marketing

situation facing an organization.

3.The Marketing Intelligent System


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A marketing intelligence system is a set ofprocedures and sources managers use to

obtain everyday information about

developments in the marketing environment.

Marketing managers collects marketingintelligence by

Reading magazines, news papers and trade

publications

Interacting with customers, suppliers and

distributors.

Meeting with other company managers.

MARKET INTELLIGENCE

SYSTEM


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SYSTEM

introduction to marketing managemnet

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