6. What does a Marketer Do? Why Bike ( Analyze Needs ) Bike Type (Product Plan) Which people? (Segment) What Quantity? (Demand Forecasting) Where to Sell? (Distribution) What to Charge? (Price) What & how to inform? (Promotion) Who all will compete (Analyze Competitors) What if problem? (Warranty)
7. Exchange – at the heart of Marketing Between Organizations and/or Individuals Marketers and Markets Exchange – the essence of Marketing Tangible/ Intangible goods, Services, Ideas, places, people
8. Conditions of Exchange Voluntary participation 2 or More parties Each has something of value for the other party Parties must communicate
9. Marketing Defined Business activities designed to Plan Price Promote Place (Distribute) Want-satisfying products to target markets to achieve organizational objectives
10. Stages of the Evolution of Marketing Promote through Sales and Advertising Sales-Orientation Stage Increase Supply Produce Efficiently Product-Orientation Stage Market-Orientation Stage Long-Run Customer Satisfaction
11. How Should a Business Be Defined? Kodak We make Cameras and Films We help Preserve Beautiful Memories. HUL We make and sell Soaps & Detergents ?? IBM We make Computer ?? SSIM We provide MBA Degree ?? Company Product oriented answer Market oriented answer
12. Marketing Concept Customer Satisfaction & Organizational Success A business philosophy that makes Customer Satisfaction as focal point of all the activities of the business Customer Orientation & Organization's Performance Objectives Coordinated Marketing Activities
13. Implementing the Marketing Concept (Customer Orientation) Mass Customization Produce products with variety and uniqueness Relationships Customer Relationship Management (CRM)
14. Implementing the Marketing Concept (Coordinated Marketing Activities) Value Creation Benefits vs. Costs Quality Total Quality Management
15. Implementing the Marketing Concept (Organizational Objectives) Societal Marketing Concept Fulfill firm’s social responsibility Performance Metrics Return on the marketing investment
16. Marketing Program (A Market) People or Organizations Money to Spend Willingness to Spend Needs to Satisfy Market
17. Marketing Program (Market Segments) Segments are subgroups of the market with similarities Wants Product Use Buying Preferences
18. Marketing Program (Target market) A market segment at which the firm directs its marketing program Market Segment A Market Segment C Market Segment B TARGET MARKET
19. Marketing Program (Position) Strategies and tactics to establish a unique position in the prospect’s mind so the product is viewed in a distinctive and attractive way DISTRIBUTION PROMOTION PRODUCT PRICE TARGET MARKET
20. Ethics and Marketing TRUST Builds Business Relationships CODE OF ETHICS CONFLICTS Challenges from conflicting goals E THICS Standards accepted by a society
24. Levels of External Forces Macro Level Influences that affect all firms Micro Level Influences that affect a particular firm
25. External Macroenvironment Forces Company’s Marketing Program Technology Political and Legal Forces Social & Cultural Forces Natural Environment Competition Demo- graphics Economic conditions
27. Key Demographics of India >1 billion Population growing @ 2% Literacy 65% (1951 – 17%) Over 3.5 Million Engineers & Scientists Life Expectancy >62 Years 2nd largest Market (next to China)
28. Economic Factors Inflation Interest Rates Stage of the Business Cycle People with Money to Spend and Willing to Spend it
29. Key Economic Facts (Indian Environment) Significant FDI, Vibrant Capital Market, High FE Reserve Inflation (Moderate – High) Interest Rates (High) Economy Growing @8-9.5%
30. Competition Rivals for Customers’ Limited Buying Power Substitute Products Every Company Brand Competition Differential Advantage
31. Social and Cultural Forces People Make Markets Beliefs Socio-cultural Patterns Changing Quickly Values Lifestyles
32. Key socio-cultural facts of India 7 Religions 17 Languages Many Cultures, Tradition bound (Changing fast due to exposure to lifestyle, Media, Globalization) More Health Conscious, Working Harder/Longer, Premium on time Changing role of Women (Housewife -Employed women)
33. Political and Legal Forces Type of Governance and Direction Governmental Relationship with Industries Monetary and Fiscal Policies Legislation - Social & Related to Marketing
34.
35. Key facts of India's Natural Environment Rich natural resources (iron, coal, rare minerals, ocean wealth) Tropical climate favours agriculture and industry Good rainfall, Has strong network of rivers In energy, costs are constantly on rise
36. Technology Affects How Marketing is Carried Out Altering Existing Industries Impacts lifestyles, consumption patterns, economic well-being Starting New Industries Stimulates Markets and Other Industries
37. External Microenvironment of a Company’s Marketing Program Company’s Marketing Program Marketing Interme- diaries The Market Marketing Interme- diaries Suppliers Value Chain
43. Role of Export Trade in Selected Countries INSERT TABLE 3.1
44. International Trade Balance of Payments Accounting record of all Transactions between countries Trade Balance Difference between imports and exports
53. Structures for Operating in Foreign Markets Exporting Directly, or through Import-Export Middlemen Company Sales Branches Licensing Foreign Products Contract Manufact-uring by Foreign Producers Joint Ventures and Strategic Alliances Wholly Owned Subsidia-ries Multinational Corporat-ions Low involvement abroad High involvement abroad
