module 1 - nature and scope of marketing

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Module 1: Nature and Scope of Marketing1. The Field of Marketing 2. The Dynamic Marketing Environment 3. Global Markets and Marketing

1. The Field of Marketing

Introduction Introduction - Self Introduction Students Name, Roll No Educational background Degree, College Home Town Photograph Why came to this college Career aims and objectives Group Formation

Who makes what?List A. Products 1. Air Conditioners 2. Hamam soap 3. Washing machines 4. Power generators 5. Sunsilk shampoo 6. Lux Soap 7. Safety Locks 8. Dove 9. Refrigerators 10.Laptops 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Biscuits Cement Office furniture Shoes Bicycles Computer Software Computer Hardware Cooking Oil Tooth Paste Detergent Powder

List B. Companies ITC, Godrej, BHEL, Videocon, Voltas, HP, Britannia, L&T, Atlas, Bata, HLL, Wipro, Microsoft, P&G

What does a Marketer Do?

What does a Marketer Do?Why Bike Why Bike (Analyze Needs) (Analyze Needs) Which people? Which people? (Segment) (Segment) Where to Sell? Where to Sell? (Distribution) (Distribution) What & how to inform? What & how to inform? (Promotion) (Promotion) Bike Type Bike Type (Product Plan) (Product Plan) What Quantity? What Quantity? (Demand Forecasting) (Demand Forecasting) What to Charge? What to Charge? (Price) (Price) Who all will compete Who all will compete (Analyze Competitors) (Analyze Competitors) What if problem? What if problem? (Warranty) (Warranty)

Marketing, DefinedBusiness activities designed to Business activities designed to Plan Plan Price Price Promote Promote Distribute (Place) Distribute (Place) Want-satisfying products to target markets Want-satisfying products to target markets to achieve to achieve organizational objectives organizational objectives

Exchange at the heart of MarketingExchange the essence of Marketing Exchange the essence of Marketing

Between Organizations Between Organizations and/or Individuals and/or Individuals

Marketers and Markets Marketers and Markets

Tangible/ Intangible Tangible/ Intangible goods, Services, Ideas, goods, Services, Ideas, places, people places, people

Conditions of Exchange

2 or More parties 2 or More parties

Voluntary participation Voluntary participation

Each has something of Each has something of value for the other party value for the other party

Parties must Parties must communicate communicate

Marketing Defined

Business activities designed to Business activities designed to Plan Plan Price Price Promote Promote Place (Distribute) Place (Distribute) Want-satisfying products to target markets Want-satisfying products to target markets to achieve to achieve organizational objectives organizational objectives

Stages of the Evolution of MarketingProduct-Orientation Product-Orientation Stage Stage Increase Supply Increase Supply Produce Efficiently Produce Efficiently

Sales-Orientation Sales-Orientation Stage Stage

Promote through Promote through Sales and Advertising Sales and Advertising

Market-Orientation Market-Orientation Stage Stage

Long-Run Long-Run Customer Satisfaction Customer Satisfaction

How Should a Business Be Defined?Company Product oriented answer Kodak HLL IBM SSIMWe make Cameras and Films We make and sell Soaps & Detergents We make Computer We provide MBA Degree

Market oriented answerWe help Preserve Beautiful Memories. ?? ?? ??

Marketing ConceptA business philosophy that makes A business philosophy that makes Customer Satisfaction as focal point of all Customer Satisfaction as focal point of all the activities of the business the activities of the business

Customer Orientation & Coordinated Marketing Activities Organization's Performance Objectives Customer Satisfaction & Organizational Success

Implementing the Marketing Concept (Customer Orientation)Relationships Customer Relationship Management (CRM)

Mass Customization Produce products with variety and uniqueness

Implementing the Marketing Concept (Coordinated Marketing Activities)QualityTotal Quality Management

Value CreationBenefits vs. Costs

Implementing the Marketing Concept (Organizational Objectives)Performance MetricsReturn on the marketing investment

Societal Marketing ConceptFulfill firms social responsibility

Marketing Program (A Market)People People or or Organizations Organizations Needs Needs to to Satisfy Satisfy

Market MarketMoney Money to to Spend Spend Willingness Willingness to to Spend Spend

Marketing Program (Market Segments)Segments are subgroups Segments are subgroups of the market with similarities of the market with similaritiesBuying Buying Preferences Preferences

Wants Wants

Product Product Use Use

Marketing Program (Target market)A market segment at which the firm A market segment at which the firm directs its marketing program directs its marketing programMarket Segment A Market Segment B Market Segment C

TARGET MARKET

Marketing Program (Position)Strategies and tactics to establish a unique position Strategies and tactics to establish a unique position in the prospects mind so the product is in the prospects mind so the product is viewed in a distinctive and attractive way viewed in a distinctive and attractive way

PRODUCT

PRICE

TARGET MARKETDISTRIBUTION PROMOTION

Ethics and MarketingETHICSStandards accepted by a society

CONFLICTSChallenges from conflicting goals

TRUSTBuilds Business Relationships

CODE OF ETHICS

Importance of MarketingGlobally Domestically Organizationally Personally

Creating UtilityForm utility Place utility

Time utility

Information utility

Possession utility

Further references Visit www.nordstrom.com to check how they have been able to restore their position by further innovation. Visit www.harleydavidson.com to check what they do to work out a long term relationship with customers. Visit www.johndeere.com to check how they implement mass customization. Visit www.tatamotors.com and check how the company create value.

Key Terms and Concepts Exchange Marketing Product-Orientation Stage Sales-Orientation Stage Market-Orientation Stage The Marketing Concept Customer Relationship Management (CRM) Mass customization Total Quality Management (TQM) Value Societal Marketing Concept Market Market segments Target market Positioning Marketing mix Ethics Creating Utility

2. The Dynamic Marketing Environment

Levels of External ForcesMacro Level Influences that affect all firms

Micro Level Influences that affect a particular firm

External Macroenvironment ForcesEconomic Competition conditions

Demographics

Companys Marketing ProgramPolitical and Legal Forces

Natural Environment

Social & Cultural Forces

Technology

Demographics

People Make People Make Markets Markets

Characteristics of Characteristics of Populations Populations

Size Size Distribution Distribution Growth Growth

Key Demographics of India2nnd largest 2 d largest Market Market (next to China) (next to China)Life Expectancy Life Expectancy >62 Years >62 Years Literacy 65%Over 3.5 Million 65%Over 3.5 Million Literacy Engineers & Engineers &(1951 17%) (1951 17%) Scientists Scientists

>1 billion >1 billion Population Population growing @ 2% growing @ 2%

Economic FactorsPeople with People with Money to Spend Money to Spend and Willing to and Willing to Spend it Spend it Stage of the Stage of the Business Business Cycle Cycle Interest Interest Rates Rates

Inflation Inflation

Key Economic Facts (Indian Environment)Significant FDI, Significant FDI, Vibrant Capital Vibrant Capital Market, High Market, High FE Reserve FE Reserve Economy Economy Growing Growing @8-9.5% @8-9.5%

(Moderate High) (Moderate High)

Inflation Inflation

Interest Rates Interest Rates (High) (High)

CompetitionRivals Rivals for Customers for Customers Limited Limited Buying Power Buying Power

Brand Brand Competition Competition Substitute Substitute Products Products Every Every Company Company

Differential Advantage Differential Advantage

Social and Cultural ForcesPeople Make People Make Markets Markets Socio-cultural Socio-cultural Patterns Patterns Changing Quickly Changing Quickly

Values Values Beliefs Beliefs

Lifestyles Lifestyles

Key socio-cultural facts of IndiaMany Cultures, Tradition Many Cultures, Tradition bound (Changing fast due bound (Changing fast due to exposure to lifestyle, to exposure to lifestyle, Media, Globalization) Media, Globalization) 7 Religions 7 Religions 17 Languages 17 Languages

Changing role of Changing role of Women (Housewife Women (Housewife -Employed women) -Employed women)

More Health Conscious, More Health Conscious, Working Harder/Longer, Working Harder/Longer, Premium on time Premium on time

Political and Legal ForcesType of Type of Governance Governance and and Direction Direction Governmental Governmental Relationship Relationship with with Industries Industries Monetary Monetary and and Fiscal Policies Fiscal Policies

Legislation Legislation -Social & Related Social & Related to Marketing to Marketing

Key facts of India's Political & Legal EnvironmentPolitical consensus Political consensus on on Economic Growth Economic Growth Economic Economic Reforms, Moving Reforms, Moving rapidly to Market rapidly to Market economy economy To operate To operate within legal within legal framework of laws framework of laws related to related to Corporate affairs, Corporate a