Need food ( is a must ) Want Pizza, Burger, French fry's ( translation of a need as per our experience ) Demand Burger

ger ( translation of a want as per our willingness and ability to buy ) Desire Have a Burger in a five star hotel

Stated needs (the customer wants an inexpensive car) Real needs (the customer wants a car whose operating cost, not its initial price, is low) Unstated needs (the customer expects good service from the dealer) Delight needs (the customer would like the dealer to include an on board navigation system) Secret needs (the customer wants to be seen by friends as a savvy consumer)
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Atleast two parties must be involved Each party must have something that interests the other party Each party must be able to communicate and deliver Each party must be free to accept or reject any offer from the other party Each party must consider it desirable, or atleast acceptable, to deal with the other party
3

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offers that have value for customers, clients, partners, and society at large.

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 4 of 25

Buying or leasing: Identifying and evaluating sources of supply; negotiating terms of purchase or lease. Selling or leasing: Identifying and communicating with targeted customers, stimulating demand through promotion, negotiating terms of sale or lease. Transporting: Moving goods from one geographical location to another. Storing: Holding goods until buyers want them. Financing: Providing the financial resources to produce, transport, store, promote, sell and buy goods or services.
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Standardising and grading: Establishing size and quantity standards, sorting goods according to these standards and grading them, thereby reducing the need to inspect and sample goods. Risk taking: Assuming, transferring and controlling the risk that the good may not sell, that it may be damaged or stolen or that it may become obsolete. Market information gathering: Identifying and analysing market opportunity, developing and administering surveys, gathering information about competitors, providing usable information to decision makers.
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1950s: - Purpose - Performance - Productivity - Profit 1960s Mc Carthy - Product - Price - Place - Promotion
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Boom & Bitner - Participant - Physical evidence - Process Kotler (Restricted markets) - Politics - Public Henry Mintzberg - Plan - Ploy - Pattern - Position - Perspective
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1990s - People - Process reengineering 21st Century - Participative management - Partnering - Personalised products - Perpetual learning

Evolution of Marketing

Quality Innovation

Create, deliver, and communicate value

Production Product
Mass production Mass distribution

Selling Marketing
Unsought goods Overcapacity

Holistic

Separations naturally exist between producers and consumers, buyers and sellers, and any other parties who enter into exchanges

Dr. Rosebloom

Spatial Separation
Producers and consumers are generally separated by space or geography

Dr. Rosebloom

Temporal Separation
Producers and consumers want to produce and consume at different times. Sales of skis generally occur during the winter but producers want to manufacture them all year

Dr. Rosebloom

Perceptual Separation
Producers may lack information about the whereabouts of consumers and consumers may lack information about the producers offerings
Dr. Rosebloom

Ownership Separation
There is a separation between producers and consumers in reference to title. Producers pass (exchange) title of product/services for title to the money the consumer holds
Dr. Rosebloom

Values Separation
There is a separation between producers and consumers because producers value the costs and prices of their products while consumers value the utility of the product

Dr. Rosebloom

Separations Functions of Marketing Utility

Spatial Transporting Storing Storing Transporting Financing Risk-Taking Selling Providing Information Place

Temporal

Time

Perceptual

Form, plus facilitates all others

Dr. Rosebloom

Separations Functions of Marketing Utility

Ownership Buying Selling Risk-Taking Financing Buying Selling Standardizing and Grading Providing Information Ownership

Values

Ownership Form

Dr. Rosebloom

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Factors Influencing Companys Marketing Strategy

Indian Marketing Environment

a. Demographic Scene
One billion population Growth rate over 2% per annum Life expectancy from 48 years in 1947 to 70 years in 2001 National literacy rate is over 50% (2001 census) . Diverse religions and languages Dialects in few hundreds.

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b. Economic Scene Top ten economies of the world.

Our GDP is growing at 5.5% per annum.

Agriculture 16% Industry 24%

Services

60%

Slow growth rates till 70s. Average 3% p.a. Last two decades have seen massive growth in the industry and services sector. In 90s spectacular growth after liberalization One of the fastest growing economies of the world
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1.What desire do I want to satisfy? Work, Exercise, Household chores, Entertainment 2. How do I want to be entertained? TV at home, Movie, Live Performance 3. What form of live performance do I want to go to? Symphony, Night club, Rock concert, Play 4. Which play do I want to go to? Starlight express, Sunset, Mcbath

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Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.

Maintain Ecological Balance Technological Developments have led to ecological imbalances. Resources:De-marketing their Products-IOC SAVE OIL-SAVE INDIA Weather,pollution(CFC chlorofluorocarbon,PVC- Polyvinyl chloride,Polyethylene bags). Government Interventions.

The Toyota Prius: one of the First Hybrid Automobiles Available for U.S. Auto Buyers

The Social-Cultural Environment

The relationship between marketing and society and its culture

Issues: Obesity in Children Negative Body Images Video Games Healthy Eating etc ..

Life style Emergence of shopping malls,supermarkets and Hypermarkets(Both husband & Wife Earning). Average income level Food habits. Multiple Life styles The changing structure of families.

Prevention of food and adulteration act 1954. Drugs control Act-1954. Company Act-1956 Standard Weights and measurement Act-1956. MRTP-Monopoly and restrictive Trade Practices-1969

Display of price order-1963 Indian Patents Act. Packaged Commodities (Regulation)Order1975. Consumer Protection Act-1986. Water(Prevention and control of pollution) Act-1981.

1. 2.

3. 4.

5.
6.

Right to Safety: to be protected against the sale of goods and services which are spurious/hazardous to life. Right to Information: to know the quality, quantity, weight and the price of goods/services being paid for, so that you are not cheated by unfair trade practices. Right to Choose: to be assured, wherever possible, access to a variety of goods and services at a competitive price. Right to be Heard: to be heard and assured that your interest will receive due consideration at appropriate fora. Right to seek Redressal: to seek redressal against unfair or restrictive trade practices or exploitation. Right to Consumer Education: to have access to consumer education.
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Includes Laws, Government Agencies, and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society.

Increasing Legislation

Changing Government Agency Enforcement Increased Emphasis on Ethics & Socially Responsible Actions

It is the managerial process that helps to develop a strategic and viable fit between the firms objectives, skills, resources with the market opportunities available. It helps the firm deliver its targeted profits and growth through its businesses and products.

Situation Assessment Mission Organisation Objectives Organisation Strategies Portfolio Analysis Marketing Strategy Implementation

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VISION : Outlines what a company wants to be. It focuses on tomorrow; it is inspirational; it provides clear decision making criteria and it is timeless. MISSION : Outlines what the company is now. It focuses on today; it identifies the customer(s); it identifies the critical process (es) and it states the level of performance.

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VISION : Be Indias foremost tea based beverage company. MISSION : - Achieve market and thought leadership for branded tea in India. -Be recognised as the foremost innovator in tea and tea based beverage solutions -Drive long term profitable growth -Co-create enhanced value for all stakeholders -Make Tata tea a great place to work

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VISION: To become the largest telecom service provider in Asia MISSION - TO provide the world class state of art tech telecom services to its customer on demand at competitive prices. - To provide world class telecom infrastructure in its area of operation and contribute in growth of countrys economy

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Strategic Business Unit (SBU)

A strategic business unit (SBU) is a part of an organisation for which there is a distinct external market for goods or services that is different from another SBU

The SBUs are the natural grouping of part of a corporation.

The SBU has a range of related products/services which has similar technologies and production processes. The products/services are sold in similar or related market segments. The production/services are sold against a welldefined set of competitors. An SBU is managed by an SBU manager, largely as an independent unit. The SBU has its own set of goals and strategies. Each SBU in a particular organization should be able to operate independently of any other SBU.

Weak

Medium

Strong Strong

Medium

Weak

Business Strength

SUPPORT ACTIVITIES

Firm Infrastructure (General Management) Human Resource Management Technology Development Procurement Inbound Logistics Operati ons. Outbound Logistics Sales & Marketing Service and Support

PRIMARY ACTIVITIES

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