Needs:- A need is something that is necessary for organisms to live a

healthy life. Needs are distinguished from wants because a deficiency

would cause a clear negative outcome, such as dysfunction or death.
Needs can be objective and physical, such as food and water, or they can
be subjective and psychological, such as the need for self-esteem.
Wants:- want is something that is desired. It is said that every person has
unlimited wants, but limited resources. Thus, people cannot have
everything they want and must look for the most affordable alternatives.
Wants are often distinguished from needs. A need is something that is
necessary for survival (such as food and shelter), whereas a want is
simply something that a person would like to have.
Demand:- Demand is the desire to own anything and the ability to pay
for it and willingness to pay. The term demand signifies the ability or the
willingness to buy a particular commodity at a given point of time.
Demand is also defined elsewhere as a measure of preferences that is
weighted by income
Value chain :- The value chain, also known as value chain analysis, A
value chain is a chain of activities for a firm operating in a specific
industry. The business unit is the appropriate level for construction of a
value chain, not the divisional level or corporate level. Products pass
through all activities of the chain in order, and at each activity the
product gains some value. The chain of activities gives the products
more added value than the sum of added values of all activities. It is
important not to mix the concept of the value chain with the costs
occurring throughout the activities. A diamond cutter can be used as an
example of the difference. The cutting activity may have a low cost, but
the activity adds much of the value to the end product, since a rough
diamond is significantly less valuable than a cut diamond.
Customer Value Analysis:- Customer Value Analysis is a customer-
survey methodology that helps customer increase market share. It works
best in the business-to-business and consumer-durables markets. In these
markets, customers make purchase decisions based on their perceptions
of value, which are formed by their perceptions of quality and price. In
the aggregate, customers flow from companies that provide inferior
value to those that provide superior value. To develop an effective
strategy for increasing customer-perceived value and market share, it is
first necessary to know where your company stands relative to its
competition. The Value Map reveals your company’s competitive
position. Companies in the upper left diagonal provide inferior value
because their prices are perceived to be too high relative to the quality of
their products and services. Companies that are stuck in this position
tend to get acquired or go out of business. Companies in the lower left
diagonal provide the highest quality at a particular price point. These
companies tend to gain market share. An excellent example of Customer
Value Analysis can be drawn from the luxury car market. Overall, Lexus
has achieved the position furthest below the fair value line. It offers
quality perceived superior to any competitor, with a market-perceived
price that is only slightly above the other models other than Mercedes. It
is not surprising Lexus soon began running away with this segment of
the luxury car market.
Buying center:- A buying center (also known as a decision making unit
or DMU), in marketing, procurement, and organizational studies, is a
group of employees, family members, or members of any type of
organization responsible for finalizing major decisions, usually
involving a purchase. In a business setting, major purchases typically
require input from various parts of the organization, including finance,
accounting, purchasing, information technology management, and senior
management. There are typically six roles within any buying center.
They are:
1. Initiator who suggests purchasing a product or service.2. Influencers
who try to affect the outcome decision with their opinions.3.Deciders
who have the final decision.4.Buyers who are responsible for the
contract.5.End users of the item being purchased.6.Gatekeepers who
control the flow of information.

Product Positioning (marketing):- In marketing, positioning has come to

mean the process by which marketers try to create an image or identity
in the minds of their target market for its product, brand, or organization.
Re-positioning involves changing the identity of a product, relative to
the identity of competing products, in the collective minds of the target
market. De-positioning involves attempting to change the identity of
competing products, relative to the identity of your own product, in the
collective minds of the target market.
Marketing strategy:- Marketing strategy is a process that can allow an
organization to concentrate its limited resources on the greatest
opportunities to increase sales and achieve a sustainable competitive
advantage. A marketing strategy should be centered around the key
concept that customer satisfaction is the main goal.
Strategic business unit(S.B.U):- Strategic Business Unit or SBU is
understood as a business unit within the overall corporate identity which
is distinguishable from other business because it serves a defined
external market where management can conduct strategic planning in
relation to products and markets. The unique small business unit benefits
that a firm aggressively promotes in a consistent manner. When
companies become really large, they are best thought of as being
composed of a number of businesses (or SBUs).Characteristics of SBU:-
1.It is a single business or collection of related businesses.2.It has its
own competitors. 3.It has a manager who is accountable for its operation
4.It is an area that can be independently planned for within the
organization.
Market Segmentation: Target Market:- Market segmentation theory
holds that people differ due to the market segments that they belong to.
So knowing your target market’ segments enables you to learn loads
about its members. The problem with market segmentation is that it has,
in the past, taken lots of time and/or money to discover enough about
your target market to improve your marketing. My matrix market
segmentation process changes that. It uses matrices to visually separate
market segments and to easily show target market characteristics that are
repeated across segments. These characteristic provide the best appeals
for your target market. To do so, matrix market segmentation utilizes
secondary research about different market segments and combines all
relevant segments into a profile for the target market.
Methods of Market Segmentation:-
l. Cluster Analysis Cluster analysis is a set of techniques for discovering
structure, or groups of individuals, within a set of data comprising
measures on each individual. The measures could be, for example, an
attitudinal battery. There is no dependent variable – all variables are
treated equally.
2. Conjoint Analysis:-This technique aims to decompose preference into
component parts, such as brand, quality, and price. This technique
views products as bundles of attributes and uses an experimental design
to vary attribute levels to create product descriptions. Survey
respondents then rank the products and the analysis works out how much
each attribute contributes to preference. It is a good technique for
benefit segmentation.
3. CHAID/Regression Trees:- This was called Automatic Interaction
Detection for a long time and now also goes under various names used
by software vendors, including Regression Tree, Answer Tree,
Classification Tree and CART. It is a technique frequently employed in
Data Mining and it is a useful exploratory analysis technique prior to
regression analysis. It can quickly analyse a large set of candidate
explanatory variables to determine the most influential variables on a
dependent variable.
4. Discriminate Analysis:-This technique is used to quantify the
relationship between segment membership (eg bought, did not buy) and
explanatory variables such as income and attitudes. It is often used after
CHAID identifies candidate explanatory variables, to formally quantify
and test the significance of relationships.

Internet:- The Internet is a global system of interconnected computer

networks that use the standard Internet Protocol Suite (TCP/IP) to serve
billions of users worldwide. It is a network of networks that consists of
millions of private, public, academic, business, and government
networks of local to global scope that are linked by a broad array of
electronic and optical networking technologies. The Internet carries a
vast array of information resources and services, most notably the inter-
linked hypertext documents of the World Wide Web (WWW) and the
infrastructure to support electronic mail. Advantages of Internet:- 1) E-
mail: Email is now an essential communication tools in business. 2) 7
days 24 hours a day - a week: Even if no staff is in your office, visitors
will come to your website using Interne3) Information: Information is
probably the biggest advantage internet is offering.. 4) Online Chat: You
can access many ‘chat rooms’ on the web that can be used to meet new
people, make new friends, as well as to stay in touch with old friends. 5)
Services: Many services are provided on the internet like net banking,
job searching, purchasing tickets, hotel reservations, guidance services
on array of topics engulfing the every aspect of life. 6) Communities:
Communities of all types have sprung up on the internet. Its a great way
to meet up with people of similar interest and discuss common
issues.7.Software Downloads: You can freely download innumerable,
soft wares like utilities, games, music, videos, movies, etc from the
Internet.
Disadvantages of Internet:-1. Theft of Personal information: Electronic
messages sent over the Internet can be easily snooped and tracked,
revealing who is talking to whom and what they are talking about.2.
Negative effects on family communication.3. Internet addiction: There is
some controversy over whether it is possible to actually be addicted to
the Internet or not. Some researchers, claim that it is simply people
trying to escape their problems in an online world and cannot be
classified as an addiction.
Characteristics of the Internet;-1.Product of the public sector. 2.Ignored
by telephone industry.3 A single standard..4.Public property 5.No
central command 6.American dominance.
Online marketing/internet marketing.:- Internet marketing isn’t just for
consumer marketers or large B2B firms – it’s a powerful vehicle for
companies of all sizes. Internet marketing offers B2B marketers an
opportunity to reach very broad or very targeted prospects to generate
leads, communicate a message and raise visibility. While a B2B
marketer has a smaller universe of prospects than a consumer marketer,
the value of each prospect is typically far greater. With a targeted
campaign and a good offer, you may only need to generate a handful of
highly qualified prospects to generate substantial revenue. You can use
campaigns to generate new leads, sell products, or increase your
visibility.
What are the benefits of internet marketing/online marketing?
1.Timing: Reach businesspeople when they’re actively looking for
information, vendors and solutions.
2.Immediacy: You can test and launch very quickly and generate
response almost immediately.
3.Targeting: You can deliver your message to very specific audiences.
4.Lead generation and nurturing: You can capture prospects early,
provide valuable information, and nurture them throughout the sales
process.
5.Cost: You can reach a large audience quickly and at a lower cost than
many other media.
6.Scalability: You can run campaigns of any size at any budget level.

Challenges faced by rural market : There are significant challenges to

the entire process the most important being the capacity building of the
rural entrepreneurs. For decades, the entrepreneurs associated with very
conventional/traditional knowledge of business, humiliation with
government, so they are likely to look at these initiatives with
skepticism. Only consistent performance can convince the skeptics.
Therefore, the industries must play a catalytic role to cope with this
challenge and should also train the entrepreneurs to develop their
managerial and IT skills. On the other hand, the products of the existing
and popular brand also stand as threat to the rural products. These global
giants (brand) may try to suppress the rural products in the markets with
its communication hype. Therefore, developing alternative and
additional market linkages for these products is an absolute necessity.
Moreover, the low volumes of rural products, high operating cots, high
attrition, and absence of local know how and relationships may also
create problem in the process. Henceforth, it is essential to make a way
out to cope with these odds.
SWOT Analysis: SWOT analysis is a tool for auditing an organization
and its environment. It is the first stage of planning and helps marketers
to focus on key issues. SWOT stands for strengths, weaknesses,
opportunities, and threats. Strengths and weaknesses are internal factors.
Opportunities and threats are external factors.
SWOT Analysis Examples.:- Nike SWOT Analysis. Strengths - Nike is
a very competitive organization. Phil Knight (Founder and CEO) is often
quoted as saying that 'Business is war without bullets. 'Weaknesses - The
organization does have a diversified range of sports products.
Opportunities - Product development offers Nike many opportunities.
Threats - Nike is exposed to the international nature of trade.
Major Brand Strategy Decisions
1. Brand positioning:-Attributes benefits, beliefs and values.
2. Brand name selection:-Selection, protection.
3. Brand sponsorship:-Manufacturer’s brand, private brand, licensing,
co-branding.
4.Brand development:-Line extension, brand extension, multi-brands,
new brand.
The Five C's of Global Branding
1. Communication: Building familiarity and relevance to consumers is
only achieved through effective communication of the brand message.
Foster's spreads its brand message through promotional programs,
sponsorship and public relations.
2. Continuity: Brand equity is enhanced by long-term marketing
programs to ensure a cumulative build over time. Australian’s is the
essence of Foster's brand image is promoted in every market in the
world. All Foster's lager theme advertising is consistent with an
Australian positioning. A powerful range of award winning advertising
and promotional programs has been the driving force of the brand's
success.
3.Consistency: Global consistency in brand packaging and advertising
image portrayal, in both above and below-the-line programs, builds upon
the brand's strengths. Also, stringent controls are in place to ensure the
Foster's experience remains consistent around the world. This experience
guarantees a consistent high-quality product and brand support that
makes Foster's Lager instantly recognizable and familiar to beer drinkers
the world over.

4. Co-operation: Foster's seeks partners to build the brand's success

through co-operative arrangements. An impressive international network
of major brewing companies, distributors and hospitality partners make
up the worldwide Foster's team. As a leading world brand, Foster's has
secured major licensing and brewing agreements in the Americas and in
Europe. Carlton & United Breweries expands the network in Australia,
while Foster's Brewing International distributes their product to the
Middle East and Africa. Foster's Brewing International also produces
Foster's lager in strategically placed breweries in Asia and the Pacific
region.
5. Control: Foster’s tightly controls the brand and its image to manage,
protect and grow the brand equity worldwide. Foster's Brewing
International has strict controls in place to protect Foster's image,
reputation and identity. Their Australian-based marketing team set the
brand direction, uphold standards and promote the latest technology to
develop communications links between their marketing team worldwide.
Foster's has an electronic, virtual global marketing office.
What are the factors influencing consumer behavior?
1. Cultural Factor: - Cultural factor divided into three sub factors (i)
Culture (ii) Sub Culture (iii) Social Class
(a)Culture: - The set of basic values perceptions, wants, and behaviors
learned by a member of society from family and other important
institutions. Culture is the most basic cause of a person's wants and
behavior. Every group or society has a culture, and cultural influences
on buying behavior may vary greatly from country to country.
(b)Sub Culture: - A group of people with shared value systems based on
common life experiences and situations. Each culture contains smaller
sub cultures a group of people with shared value system based on
common life experiences and situations. Sub culture includes
nationalities, religions, racial group and geographic regions. Many sub
culture make up important market segments and marketers often design
products.
( C)Social Class:- Almost every society has some form of social
structure, social classes are society's relatively permanent and ordered
divisions whose members share similar values, interests and behavior.
2. Social Factors: - A consumer's behavior also is influenced by social
factors, such as the (i) Groups (ii) Family (iii) Roles and status.
(a)Groups: - Two or more people who interact to accomplish individual
or mutual goals.
(b)Family: - Family members can strongly influence buyer behavior.
The family is the most important consumer buying organization society
and it has been researched extensively.
(c)Roles and Status:- A person belongs to many groups, family, clubs,
organizations. The person's position in each group can be defined in
terms of both role and status.

3. Personal Factors:- It includes i) Age and life cycle stage (ii)

Occupation (iii) Economic situation (iv) Life Style (v) Personality and
self concept.
(a)Age and Life cycle Stage:- People changes the goods and services
they buy over their lifetimes. Tastes in food, clothes, furniture, and
recreation are often age related. Buying is also shaped by the stage of the
family life cycle.
(b) Occupation: - A person's occupation affects the goods and services
bought. Blue collar workers tend to buy more rugged work clothes,
whereas white-collar workers buy more business suits. A Co. can even
specialize in making products needed by a given occupational group.
Thus, computer software companies will design different products for
brand managers, accountants, engineers, lawyers, and doctors.
(c) Economic situation: - A person's economic situation will affect
product choice
(d) Life Style: - Life Style is a person's Pattern of living, understanding
these forces involves measuring consumer's major AIO dimensions. i.e.
activities (Work, hobbies, shopping, support etc) interest (Food, fashion,
family recreation) and opinions (about themselves, Business, Products)
(e)Personality and Self concept: - Each person's distinct personality
influence his or her buying behavior. Personality refers to the unique
psychological characteristics that lead to relatively consistent and lasting
responses to one's own environment.
4. 4. Psychological Factors: - It includes these Factors. i) Motivation (ii)
Perception (iii) Learning (iv) Beliefs and attitudes.
(a) Motivation: - Motive (drive) a need that is sufficiently pressing to
direct the person to seek satisfaction of the need.
(b) Perception: - The process by which people select, Organize, and
interpret information to form a meaningful picture of the world.
(c) Learning: - Changes in an individual’s behavior arising from
experience.
(d) Beliefs and attitudes: - Belief is a descriptive thought that a person
holds about something Attitude, a Person's consistently favorable or
unfavorable evaluations, feelings, and tendencies towards an object or
idea.