MARKETING MODULE I

MANAGEMENT
IDENTIFY THE ODD ONE OUT
NESTLÉ's relationship with India dates back to 1912, when it began trading as The
NESTLÉ Anglo-Swiss Condensed Milk Company (Export) Limited

 in 1947, the economic policies of the Indian Government emphasised the need for
local production. NESTLÉ responded to India's aspirations by forming a company in
India and set up its first factory in 1961 at Moga, Punjab
KEY FIGURES (IN CRORES) INDIA

2013 2014 2015 2016

Net Sales 9061.9 9806.3 8123.3 9159.3

Goss Profit 1694.2 1792.6 1333.8 1571.9

Net Profit 1117.2 1184.7 563.3 926.6

Source: Nestle India

KEY FIGURES (IN MILLION $) NESTLE
GROUP
2015 2016

Net Sales 90827 91526.8

Goss Profit 12025 12814

Net Profit 9684.7 9087.31

Source: Consolidated financial statement – Nestle group

WHAT’S COMMON?
WHY STUDY MARKETING

Exchange of goods – role in society

It influence everyday life

Marketing influence business

Marketing is multi-faceted

Excellent career opportunities

GROUP PRESENTATION - 5
MINS
Discuss within groups and identify a
product which one of the group member
bought recently.

Understand why he/she bought the product

Know how (s)he identified the product.

What are all the other products been

considered for purchase
BASIC CONCEPTS
Market
Marketing
Marketer
Need, Want, Demand
STP
Offering
Brand
Value and Satisfaction
BASIC CONCEPTS
Market a “market” is a physical place where buyers
Marketing and sellers gathered to buy and sell goods.
Marketer
Economists describe a market as a collection
Need, Want, Demand
of buyers and sellers who transact over a
STP
particular product or product class (such as the
Offering
Brand housing market or the grain market).

Value and Satisfaction

BASIC CONCEPTS
Market Types of Market
Marketing  Government market
Marketer
 Resource market
Need, Want, Demand
 Manufacturers market
STP
Offering  Intermediary market
Brand  Consumers market
Value and Satisfaction
BASIC CONCEPTS
Market
Market Place
Marketing
Marketer Market Space
Need, Want, Demand
STP Meta Market
Offering
Brand
Value and Satisfaction
BASIC CONCEPTS
Market
Marketing is about identifying and meeting
Marketing
human and social needs and meeting needs
Marketer
Need, Want, Demand profitably.

STP
Offering
Brand
Value and Satisfaction
BASIC CONCEPTS
Marketing is the activity, set of

institutions and creating,

Market

Marketing communicating, delivering, and

Marketer
exchanging offerings that have value
Need, Want, Demand
STP for customers, clients, partners, and
Offering
society at large
Brand
Value and Satisfaction
- American Marketing Association
BASIC CONCEPTS
Market
What can be Marketed?
Marketing
Goods
Marketer
Services
Need, Want, Demand
Experience
STP
Offering Events

Brand Organization
Value and Satisfaction Idea
BASIC CONCEPTS
Market
What can be Marketed?
Marketing
Person
Marketer
Place
Need, Want, Demand
Property
STP
Offering Information

Brand
Value and Satisfaction
BASIC CONCEPTS
Market
A marketer is someone who seeks a
Marketing
response—attention, a purchase, a
Marketer vote, a donation—from another party,
Need, Want, Demand called the prospect
STP
Offering
Brand
Value and Satisfaction
BASIC CONCEPTS
Market
Needs are the basic human
Marketing
requirements such as for air, food,
Marketer
water, clothing, and shelter. Humans
Need, Want, Demand
also have strong needs for recreation,
STP
Offering education, and entertainment.
Brand
Value and Satisfaction
BASIC CONCEPTS
Market
Stated needs
Marketing
Marketer Real needs
Need, Want, Demand Unstated needs
STP
Offering Delight needs
Brand
Secret needs
Value and Satisfaction
 Stated Need
I want a low price car

Real Need
I want a car whose initial price is low as well as the maintenance cost

Unstated Need
I want a good technology and service from the manufacturer

Delight Need
I want a full option vehicle

Secret Need
I want the car to show my status
BASIC CONCEPTS
Market
needs become wants when they are
Marketing
directed to specific objects that
Marketer
might satisfy the need
Need, Want, Demand
STP
Offering
Brand
Value and Satisfaction
BASIC CONCEPTS
Market
Demand is the requirement of a specific
Marketing
product in the market at a specific time
Marketer
period.
Need, Want, Demand
Desire to buy a product, ability to buy
STP
and willingness to pay
Offering
Brand
Value and Satisfaction
BASIC CONCEPTS
Types
 Negative Demand

Market  No demand
Marketing  Latent Demand
Marketer  Faltering Demand
Need, Want, Demand  Irregular Demand
STP  Full Demand
Offering  Overfull Demand
Brand
 Unwholesome Demand
Value and Satisfaction

***The major tasks of Marketing Management by Philip Kotler, Journal of

BASIC CONCEPTS
Market
Marketing Segmentation
Marketer
Need, Want, Demand Targeting
STP
Positioning
Offering
Brand
Value and Satisfaction
BASIC CONCEPTS
Segmentation
Segmentation is the process of
Market
dividing a whole market into
Marketing
homogeneous subgroups who has
Marketer
similar needs/wants and reacts
Need, Want, Demand
similarly to market efforts
STP
Offering Segments are identified not created
Brand
Value and Satisfaction
BASIC CONCEPTS
Targeting

Market The act of the business on focusing

Marketing the marketing efforts towards a
Marketer group of identified customers within
Need, Want, Demand the serviceable area.
STP
Targets are drawn from
Offering
segmentation.
Brand
Value and Satisfaction
BASIC CONCEPTS
Positioning
The act of creating a clear, unique,
Market
and advantageous position in the
Marketing
customer’s mind about the offerings
Marketer
the business is making.
Need, Want, Demand

STP
Offering
Brand
Value and Satisfaction
BASIC CONCEPTS
Market
Marketing which can be a combination of products,

Marketer services, information, and experiences.

Need, Want, Demand
STP a set of benefits that satisfy the needs of

Offering the customers

Brand
Value and Satisfaction
BASIC CONCEPTS
Market
a brand is “a name, term, sign,
Marketing
symbol, or design, or a combination of
Marketer
them, intended to identify the goods or
Need, Want, Demand
services of one seller or group of sellers
STP
and to differentiate them from those of
Offering
competitors
Brand
Value and Satisfaction
BASIC CONCEPTS
Market  
Marketing Discuss the benefits and
Marketer Cost
Need, Want, Demand
STP
Offering
Brand

Value and Satisfaction

  
BASIC CONCEPTS
Satisfaction reflects a person’s judgment

of a product’s perceived performance in

Market
relationship to expectations
Marketing
Marketer Discuss the determinants of customer
Need, Want, Demand
satisfaction – Buying a product from
STP
Offering a)Authorized dealer b)Retailer c)Online
Brand Retailer
Value and Satisfaction
DETERMINANTS OF
CUSTOMER SATISFACTION –
ACSI MODEL
*** http://hitconsultant.net/2017/06/02/patient-frustration-infographic/
MARKETING MYOPIA

Every major industry was once a growth industry. But some that are now
riding a wave of growth enthusiasm are very much in the shadow of decline.
Others, which are thought of as seasoned growth industries, have actually
stopped growing. In every case the reason growth is threatened, slowed, or
stopped is not because the market is saturated. It is because there has been a
failure of management
- Theodore Levitt
OVERVIEW OF MARKETING
PHILOSOPHIES

http://studiousguy.com/marketing-management-philosophies/
PHILOSOPHIES

Production concept These philosophies strongly influence

the organization’s marketing process.
Product concept

Sales concept

Marketing concept

Societal concept
PHILOSOPHIES
Both Product and Production concept
Product concept
deals with the internal capabilities of the

Production concept firm

Simply it is the SWOT/SWOC analysis

Sales concept
– important for strategic planning
Marketing concept
Sometimes what a company produces is
Societal concept exactly what the customer wants
PHILOSOPHIES

Production concept Aggressive sales techniques = High

sales = High profit
Product concept
Push technique – convince people to
Sales concept buy goods and services (they may have
the need or they may not)
Marketing concept
Aggressive advertisement and sales
Societal concept
promotional techniques are used.
PHILOSOPHIES What a business produces is not primary
importance to the success. Instead what
customers’ think what they are buying
Production concept
(Perceived value) is the success factor.
Product concept
Focus on needs/wants of customer
Sales concept
Integrate all org. activities

Marketing concept Keep customer satisfaction as the long

term objective
Societal concept
PHILOSOPHIES

Production concept Apart from satisfying the customer

needs the business should also focus on
Product concept
satisfying the needs/wants of the society.
Sales concept
Responsible marketing
Marketing concept Responsible sourcing

Societal concept
PHILOSOPHIES

Production concept “...business leaders are responsible for

efficiently allocating resources and
Product concept
creating wealth. On the other hand,
Sales concept business leaders are responsible for
carrying out this task in ways that are
Marketing concept
legally, ethically and socially desirable”
Societal concept
(Badaracco 2004)
SALES VS. MARKETING
1. Organization Focus
2. The firm’s business
3. To whom the product is directed
4. Firm’s primary goal
5. Tools used to achieve these goals
SALES VS. MARKETING
1. Organization Focus
2. The firm’s business
3. To whom the product is directed
4. Firm’s primary goal
5. Tools used to achieve these goals
Inward vs. outward looking
Creating customer value – Cavinkare
Customer Satisfaction
Building Relationship vs holistic
marketing
SALES VS. MARKETING
1. Organization Focus
What business OLA deals with?
2. The firm’s business
Do Rolls Royce involved in
3. To whom the product is directed
manufacturing cars?
4. Firm’s primary goal
5. Tools used to achieve these goals
SALES VS. MARKETING
1. Organization Focus Individual
2. The firm’s business Vs.
3. To whom the product is directed group
4. Firm’s primary goal
5. Tools used to achieve these goals
SALES VS. MARKETING
1. Organization Focus Profit value
2. The firm’s business Vs.
3. To whom the product is directed Customer Value

4. Firm’s primary goal

5. Tools used to achieve these goals
SALES VS. MARKETING
1. Organization Focus
Advertisement & Sales promotion
2. The firm’s business
3. To whom the product is directed Vs.
4. Firm’s primary goal Holistic marketing
5. Tools used to achieve
these goals
STRATEGIC PLANNING
Strategic planning is the managerial process of creating and maintaining a fit
between organization’s objectives and resources and the evolving market
opportunities.
NATURE, IMPORTANCE AND
SCOPE OF STRATEGIC PLANNING

Strategic planning can be viewed as a stream of decisions and actions that lead to

effective strategies and which, in turn, help the firm achieve its growth objectives.

The process involves a thorough self-appraisal by the corporation, including an

appraisal of the businesses it is engaged in and the environment in which it operates.

Rapid Changes in Environment Necessitate a Strategic Perspective

Strategic Planning Provides the Direction to the Corporation and Indicates. How Growth is to
be Achieved

Enables Long-term Decisions Concerning the Firm

Ensures Optimum Utilization of Resources

Prepares the Firm to Face the Future

Helps Acquire Relevant Competitive Advantages

THE CENTRAL ROLE OF
STRATEGIC PLANNING
Successful marketing thus requires capabilities such as understanding,

creating, delivering, capturing, and sustaining customer value

To ensure they select and execute the right activities, marketers must give priority to
strategic planning in three key areas:

(1) managing a company’s businesses as an investment portfolio,

(2) assessing each business’s strength by considering the market’s growth rate and the
company’s position and fit in that market, and

(3) establishing a strategy

Most large companies consist of four organizational levels:

(1) corporate,

(2) division,

(3) business unit, and

(4) product
Finally, each product level (product line, brand) develops a marketing plan

for achieving its objectives.

The marketing plan is the central instrument for directing and coordinating

the marketing effort. It operates at two levels: strategic and tactical.

The strategic marketing plan lays out the target markets and the firm’s value

proposition, based on an analysis of the best market opportunities.

The tactical marketing plan specifies the marketing tactics, including product

features, promotion, merchandising, pricing, sales channels, and service

CORPORATE AND DIVISION
STRATEGIC
PLANNING

Some corporations give their business units freedom to set their own sales and profit

goals and strategies.

All corporate headquarters undertake four planning activities:

1. Defining the corporate mission

2. Establishing strategic business units

3. Assigning resources to each strategic business unit

4. Assessing growth opportunities

DEFINING THE CORPORATE
MISSION
Amazon.com changed its mission from being the world’s largest online

bookstore to aspiring to become the world’s largest online store;

eBay changed from running online auctions for collectors to running online

auctions of all kinds of goods

To define its mission, a company should address Peter Drucker’s classic questions:

What is our business?

Who is the customer?

What is of value to the customer?

What will our business be?

What should our business be?

These simple-sounding questions are among the most difficult a company will ever have to answer.
Successful companies continuously raise and answer them.
Good mission statements have five major characteristics.

1. They focus on a limited number of goals

2. They stress the company’s major policies and values.

3. They define the major competitive spheres within which the company will operate.

4. They take a long-term view.

5. They are as short, memorable, and meaningful as possible

STRATEGIC PLANNING
PROCESS
Defining Org.
mission

Monitoring Establishing
results SBU

Feed back

Performing
Implementing
situation
tactical plan
analysis

Developing Setting
Marketing Marketing
strategy objectives
SITUATION ANALYSIS
Internal – SWOT/SWOC/TWOS

External – PEST, STEEPLE and others

PORTER’S COMPETITIVE
ADVANTAGE
DEVELOPING MARKETING
STRATEGY
Product/Market Opportunity Matrix,

Boston Consulting Group Matrix,

General Electric Business Screen, And

Porter Generic Strategy Model.

Product – Market Opportunity Matrix –
Ansoff’s MARKET

Present New

Market
Market
Present Developmen
P Penetration
t
R
O
D
U
C Product
Diversificati
T New Developmen
on
t
BCG MATRIX
GE 9 CELL MATRIX
Industry attractiveness factors include market size and growth, competition,

technological advances, and social & legal environment.

Company business strengths embody differential advantages, market share,

patent protection, marketing effectiveness, control over prices, and

economies of scale
Always remember the objective of the strategic should be “creating customer value”
THE VALUE CHAIN

Harvard’s Michael Porter has proposed the value chain as a tool for
identifying ways to create more customer value.

The value chain identifies nine strategically relevant activities—five primary

and four support activities—that create value and cost in a specific business
VALUE CHAIN
MARKETING MIX
The term marketing mix refers to a unique blend of product, place, promotion and
pricing strategies designed to produce mutually satisfying exchanges with a target
market.

The marketing strategy involves the activities of selecting and describing one or
more target markets and developing and maintaining a marketing mix that will
produce mutually satisfying exchanges with target market.
RECALL
Marketing
Basics of Marketing
Market philosophie
marketing overview
s

Competitiv
Strategic Sales Vs.
Value chain e
Planning Marketing
Advantage

Marketing
Mix