1.

How will you compare our old and new economy (what are the consumers have today that did
not have yesterday?) Explain your answer.
2. Discuss the six (6) competing concepts under which organizations conduct marketing activities?
3. Discuss the four (4) specific drivers that underpin the new economy.
4. Illustrate and discuss the steps in the business unit strategic planning process.
5. Discuss the steps in the marketing planning process.

Answers:

1. When we talk about the old economy, focuses on traditional methods of doing business. This is
based on the production of goods rather than the sharing of ideas and opinions. Here,
measurable elements such as operating costs and product scarcity are used to determine the
value of common products. On the other hand, the term "new economy" refers to new, high-
growth industries that are at cutting edge of technology and are thought to be the driving force
of economic growth and productivity. As high-tech tools, particularly the Internet and
increasingly sophisticated electronics, found their way into the consumer and commercial
marketplace. The new economy was viewed as a massive shift from a manufacturing and
commodity-based economy toward one that relied on technology to rapidly produce new
products and services. In today’s time, purchasing a product is more convenient and less hassle
than before, because now you can shop online. Consumers can now learn about the product or
service just by simply visiting websites. They also have the free will to choose from a wider range
of products and services. Lastly, consumers now have the power to share their insights,
feedback, and reviews about a specific product or service, thanks to the new economy.
2. (1) production concept, (2) product concept, (3) selling concept, (4) marketing concept, and (5)
societal marketing concept is the competing concepts under which firms have conducted
marketing activities.
 PRODUCTION CONCEPT- This is one of the oldest marketing management orientations
for sellers. Management here is focused on increasing the efficiency of production and
distribution. If a company decides to operate under this concept, it will aim to reduce
manufacturing costs by making the process more efficient. Furthermore, for its items to
be popular with consumers, it will aim to expand its distribution as much as possible.
 PRODUCT CONCEPT- The product is the major focus here. Continuous product
enhancements are the emphasis of marketing tactics. Consumers will prefer products
that are superior in quality, performance, innovative features, designs, and so on,
according to the product concept. This marketing strategy was supposed to be
straightforward: whoever delivered a standard product at the lowest price would win. A
company that follows this concept strives to improve its products' quality, performance,
and any other observable aspect.
 SELLING CONCEPT- The management here is more concerned with generating sales
transactions than with establishing long-term, profitable client relationships. In other
words, rather than making what the market wants, the goal is to sell what the company
makes. Such an aggressive sales strategy is inherently risky. In the selling concept, the
marketer expects that clients who are persuaded to buy a product will enjoy it; if they
do not, they will likely forget about their disappointment and buy it again later.
  MARKETING CONCEPT- Marketing management applies a "customer first" strategy in
this situation. under the marketing concept, c Customer engagement and value are the
paths to sales and profitability A customer-centered "sensing and responds" concept
underpins the marketing concept. It's not your duty to locate the right customers for
your product; it's your responsibility to find the perfect products or services for your
customers. the marketing concept is based on four main pillars,
1. market focus,
2. customer orientation,
3. coordinated marketing, and
4. profitability.
 SOCIETAL MARKETING CONCEPT- "Marketing strategy should deliver value to customers
in a way that maintains or improves both the consumer's and society's well-being,".
According to the societal marketing concept, it calls for sustainable, socially, and
environmentally responsible marketing that meets consumers' and businesses' current
needs while also preserving or enhancing future generations' ability to meet their
needs. The Societal Marketing Concept prioritizes human welfare over profits and
fulfilling wants.
 THE HOLISTIC MARKETING CONCEPT is focused on the creation, design, and
implementation of marketing programs, processes, and activities that understand its
interconnectedness and breadth. Holistic marketing recognizes that in marketing,
everything matters—and that a broad, integrated perspective is frequently required.
3. The major 4 forces that are driving the new economy are (1) Digitalization and Connectivity, (2)
Disintermediation and Reintermediation, (3) Customization and Customerization, and (4)
Industry Convergence.
 Digitalization and Connectivity- The conversion of data, documents, and processes from
analog to digital is known as digitization. Digitalization, on the other side, includes
changing business operations through the use of digital technologies, resulting in
increased efficiencies and revenue.
 Disintermediation and Reintermediation- Cutting out the middlemen in e-commerce
transactions is referred to as disintermediation. Reintermediation, on the other hand,
refers to reassembling buyers, sellers, and other stakeholders in a traditional supply
chain in new ways using the Internet.
 Customization and Customerization -Customerization is a marketing approach in which
a company's products or services are tailored to the needs of its customers through
personal interaction and communication. Customization, on the other hand, is the
modification of a product or service to meet a specific need.
 Industry convergence- refers to the creation of previously unrelated technical fields,
work processes, enterprises, supply networks, and even entire industry sectors that
were previously unconnected. Each new link creates innovation and has the potential to
cause huge impact.
4.
5.

Step 1 – Business Mission

The business's mission is used to guide the strategic planning process (obtained from bigger
companies or corporate missions). Managers, staff, and, in some cases, customers work
together to create a clear and reflecting purpose statement. This gives the company a sense of
direction, purpose, and opportunity. Within the company's overall objective, each business unit
must specify specific missions.
Step – SWOT Analysis
SWOT stands for the all-inclusive analysis of a company’s Strengths, Weaknesses, Opportunities,
and Threats. A SWOT analysis should show an organization's key competencies as well as
opportunities that it is now unable to utilize due to a lack of resources.
Step – Goal Formulation
Goal formulation is the process of creating specific goals for the planning period. Managers use
goals to describe specific objectives in terms of magnitude and timeliness.
Step- Strategic Formulation
The process of documenting the planned direction of a firm and the specific steps to achieve its
goals is known as strategy formulation. This method is used to allocate resources, prioritize
tasks, align the entire organization, and validate business objectives.
Step- Program Formulation and Implementation
Strategies are only effective if they are applied correctly. As a result, practical programs must be
developed. If the goal is to achieve technological leadership in the development of certain
products, the company's research and development (R&D), production, and processing units
must all be strengthened. Similar constraints apply to marketing programs, which must review
and, if required, change the effectiveness of their tools (product, pricing, location, and
promotion). A smart marketing plan can be badly harmed by poor implementation. Strategy is
one of the seven components of successful company practice.
Step: Feedback and Control
This third part underlines the importance of evaluating the company's strategic fit with the
market and other environmental factors on a regular basis.
6. Marketing planning process consists of analyzing marketing opportunities, selecting/defining
target markets, developing Marketing Strategies, planning Marketing Programs, and managing
the marketing effort.
Analyzing marketing opportunities
In order to improve the department's performance, marketing managers must examine long-
term opportunities in the market or economic environment. It's possible that these prospects
 will lead to the development of new products. Marketers must do formal research utilizing
secondary sources, which is then supplemented by personal, phone, and postal surveys, as well
as focus groups (primary sources). Statistical methods are used to examine the data acquired in
order to determine the effects of various marketing initiatives. Information on competitors'
long-term activity should also be gathered as part of marketing research.

Selecting defining target markets

It is essential for organizations or marketers to identify the set of people whom they want to
target. Here are some tips to help you define your target market.

 Look at your current customer base.

 Check out your competition.

 Analyze your product/service.

 Choose specific demographics to target.

 Consider the psychographics of your target.

 Evaluate your decision.

Developing Marketing Strategies

To establish stable and distinct market categories, the information gathered during the
marketing research process to support marketing strategy decisions must be reviewed. Each
sector's demands and potential must be appraised, and the segment that the market can best
serve and profit from must be chosen.

Planning Marketing Programs

Marketing strategy decisions must be translated into marketing budget and labor allocations for
the marketing mix's marketing tools. The marketing mix is a crucial concept in marketing
management since it allows for a systematic approach to the marketing process. Consider using
the $p’s of marketing in this step.

Managing the marketing effort

The company wants to create and implement the marketing mix that would help it achieve its
goals in target markets the most effectively. The four marketing management functions are
required to manage the marketing process.

 ANALYSIS- A SWOT Analysis should be performed by the marketer to assess the

company's overall strengths, weaknesses, opportunities, and threats.

 PLANNING- develops company strategic plans. then translate them into marketing and
other plans for each division, product, and brand.
 IMPLEMENTATION- turns the plans into actions.

 CONTROL- Measuring and evaluating the results of marketing activities and taking
corrective action when needed