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About Marketing….• A Professor at one of the IIMs (INDIA) was explaining  marketing concepts to the Students:-   – 1. You ...
– 4. Youre at a party and see gorgeous girl. You get  up and straighten your tie, you walk up to her and  pour her a drink...
– 8. You see a gorgeous girl at a party. You go up to  her and before you say anything, another person  comes and tells he...
Marketing is for Everybody• TO SHOW THAT MARKETING IS ESSENTIAL• PROVIDE AN UNDERSTANDING OF THE BASIC  MARKETING CONCEPTS
The Nature of Marketing• What is the Purpose of Marketing?  1.Satisfaction:  • Functional Satisfaction  • Psychological Sa...
Simple Marketing System                  Communication                Goods/services   Industry                           ...
The Nature of Marketing• What is the Purpose of Marketing?   Satisfaction   • Increments of Satisfaction   • Facilitating ...
Evolving Views of Marketing’s Role             Production             Marketing             Customer   The customer as the...
Traditional Organization Chart           Top        Management    Middle Management      Front-line people         Customers
Customer-Oriented Organization Chart              Customers           Front-line people          Middle management        ...
Core Concepts of MarketingTarget Markets & Segmentation Needs, Wants, and Demands      Product or Offering    Value and Sa...
Nike Town
Experiential marketing!?
Disney Experience!
Apple Store
Implications of marketing• Who are our existing / potential customers?• What are their current / future needs?• How can we...
The marketing concept• choosing and targeting appropriate  customers• positioning your offering• interacting with those cu...
Evolving Indian Consumer
The Indian Consumer’s                        Changing Spending Patterns Changing consumer behavior is catalyzing change in...
Emerging Trends
Shift to Thrift Redefining Value
Small Wonders Small Perk Me Up    Products
‘Mummy ka Magic’    Stays Intact
Eating ‘Out’ at Home Evolving Home Delivery Model
Taste Bhi, Health Bhi   A very strong co-relation
Sattva Foods……..
Quality Walls’s “MOO” – Calcium Enriched !
Food On The Go  Instant Pick Me Up
Eco Conscious       A light shade of greenEco Conscious
Food As Discovery   More Experimenting
The Food ‘Connect’   Use of Social Media
POP will remain  Supreme   The final test
The changing Indian consumer The media explosion. Increase in disposable income. The rise of the great Indian middle cl...
Successful marketing requires:• Profitable• Offensive (rather than defensive)• Integrated• Strategic (is future orientated...
Nirma Little Girl!
“Surf” ad with Lalitaji!
Lux ad in 1950s!
Lux Beauty soap with Katrina!
Mantri Square, B’lore!
What is Marketing ?    Selling ? Advertising ?Any thing more?
•   SOME ISSUES ON MARKETING
Model of Consumer BehaviorMarketing         Buyer’s Black Box    Buyer’s ResponsesMixStimuli                    ?         ...
Examples of Buying Motives:     Psychological or Functional?• A senior wants to impress his date at  the prom .  His prima...
Examples of Buying Motives:       Psychological or Functional?• A girl wants to remember her grandmother on her birthday. ...
Examples of Buying Motives:       Psychological or Functional?• A homemaker needs a new washing machine and has had  good ...
Examples of Buying Motives:        Psychological or Functional?• A teacher wants to buy a practical car to be used for fam...
Examples of Buying Motives:       Psychological or Functional?• A career woman always buys Liz Claiborne clothes.  Her pri...
Examples of Buying Motives:       Psychological or Functional?• An overweight 40 year old man wants to loose weight so  th...
Examples of Buying Motives:       Psychological or Functional?• A homeowner needs to mow their lawn.  Their primary motive...
Consumer Buying Behavior Competency                     Functional   Psychological                     Motive       Motive...
Consumer Buying Behavior Competency                       Functional   Psychological                       Motive       Mo...
What is Marketing ?We use the word Marketing to describe such things as• analyzing the needs of the people• trying to gues...
What is Marketing ?…. And,• figure out the best price to sell it at - and can you still  make a profit selling it at that ...
Marketing is concerned with anticipating consumer  demand and directing flow of goods from producers to  consumers.Marketi...
Marketing - the formal definition Process of planning and executing the conception, pricing, promotion, and distribution o...
Why should we know about Mkt.?• Also, Cause,,,,,,,,,,,,,,,,,, marketing people in a  company bring in the money - so their...
The Importance of Marketing• Why study Marketing - „cause you can get a  JOB in Marketing !!• Canada is a very multi-cultu...
The Importance of Marketing• Marketing is a core business discipline• The study of marketing is important to the basics of...
The Importance of MarketingGetting a JOB in Marketing !!•   Personal selling•   Advertising•   Package Design•   Transport...
The Importance of MarketingImportance to Companies• When you work in the marketing department of a  company you are part o...
Why should we know about Mkt.?• You can get to be C.E.O. and Chairman of  the Board• “Marketing is often the route to the ...
The Importance of MarketingGetting a JOB in Marketing !!In addition, many people working with NPO‟s also   do marketing• P...
Marketing• Marketing is something companies do, and it is also a  characteristic of our society• “It is both a set of acti...
Micro - marketing for a companyMacro - the whole economy
Micro - marketing for a company, thingsyou do to accomplish the organizationsobjectives (companies and NPO’s)Macro - the w...
Micro - Its not just selling stuff, but alsolooking at what the customers wantMacro - Looking at how everybody in thecount...
Micro-Macro Dilemma• Government has to step in cause not everything  would be produced fairly by companies - so  regulatio...
Micro-Macro Dilemma• Government has to step in cause not everything  would be produced fairly by companies - so  regulatio...
The Marketing FunctionsBuyingTransportingStoringGradingFinancingRisk TakingInformation CollectionResearch….
WHO does the marketing functions ?From a Macro-point of view• Centrally planned economy (communism)  - its done mostly by ...
Innovation is encouraged by a market-directed economy(capitalism) because people who come up with new ideas are free totry...
A380 - Interior
Reliance i Pad ( In association with       Notion Ink, HYD. )
Rolls Royce Ghost!
Advocacy Advertising• You are not trying to sell a product, you are trying to  get people to believe in something, or beha...
One of the big complaints about marketing is that ppl actunethical in order to make a sale.Sometimes it is easy to forget ...
Marketing Concept          - Social Responsibility- “improve positive effects on Society and   reduce negative effects…”- ...
Marketing Concept        - Social Responsibility-? Of social responsibility cutting into   profits- some companies have be...
Marketing Concept             - Social Responsibility-? What if it cuts into profitsAnswer - increasing quality may cost m...
Company Orientations Towards the MarketplaceOrientation            Description            Relative Time      Basic Manager...
The Marketing Concept          A Customer Orientation    Backed By Integrated Marketing       Aimed at Generating Customer...
The Marketing Concept (Contd..)                    Focus         Means            EndSales Concept      Products      Sell...
Stages in Consumer Decision Process  Word-of- Mouth               Awareness                                      Advertisi...
Cost of Losing and Attracting Customers• Cost of attracting a new customer can be upto 5 times the cost  of keeping a curr...
Developing An Effective Marketing Plan•   Conduct A Marketing Review•   Build A Marketing Strategy•   Implement Strategy V...
Conduct A Marketing Review (3-C Analysis)A. Analysis of      B. Assessment of           C. Analysis ofCUSTOMER            ...
Build A Marketing Strategy Generic Strategies For    DIFFERENTIAL                    Selection of     ADVANTAGE           ...
Implementation: The Marketing Mix (Four P’s) • Product • Price • Place • Promotion
3C - 4P Framework BMWColgateIDS                          • Product     NestlePDA /        • CustomerInfiniti              ...
Marketing System                  Long Term Factors                     Technological           Short Term Controllable Fa...
Recasting the 3C - 4P Framework in Value Terms                                    Creating                                ...
• The most important aspect of any company’s Marketing  concept is identifying its SWOT Analysis.• What is SWOT analysis?
SWOT Analysis - Examples• Example 1 - Wal-Mart SWOT Analysis. Strengths - Wal-  Mart is a powerful retail brand. It has a ...
• Example 2 - Starbucks SWOT Analysis. Strengths -  Starbucks Corporation is a very profitable organization,  earning in e...
• Example 3 - Nike SWOT Analysis. Strengths - Nike is a  very competitive organization. Phil Knight (Founder and  CEO) is ...
• Example 4 - Indian Premier League (IPL) SWOT  Analysis. Where will you find the Mumbai Indians, the  Royal Challengers, ...
• Example 5 - Bharti Airtel SWOT Analysis. Weaknesses -  An often cited original weakness is that when the business  was s...
Replaying the Game• P&G: “We sell coffee” vs. “We sell canned coffee of moderate quality in groceries”• The brand we have ...
Caselet-1• While entering a developing country like India, MNCs should  consider the factors to which consumers in India a...
Caselet-2• During recession, most companies resort to downsizing  and cutting costs related to advertising. But advertisem...
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  1. 1. About Marketing….• A Professor at one of the IIMs (INDIA) was explaining marketing concepts to the Students:- – 1. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" - Thats Direct Marketing – 2. Youre at a party with a bunch of friends and see a gorgeous girl. One of your friends goes up to her and pointing at you says: "Hes very rich. Marry him." - Thats Advertising – 3. You see a gorgeous girl at a party. You go up to her and get her telephone number. The next day, you call and say: "Hi, Im very rich. Marry me." - Thats Telemarketing
  2. 2. – 4. Youre at a party and see gorgeous girl. You get up and straighten your tie, you walk up to her and pour her a drink, you open the door (of the car) for her, pick up her bag after she drops it, offer her ride and then say: "By the way, Im rich. Will you marry me?" - Thats Public Relations– 5. Youre at a party and see a gorgeous girl. She walks up to you and says: "You are very rich! Can you marry me?" - Thats Brand Recognition– 6. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" She gives you a nice hard slap on your face. - Thats Customer Feedback– 7. You see a gorgeous girl at a party. You go up to her and say: "I am very rich. Marry me!" And she introduces you to her husband. - Thats demand and supply gap
  3. 3. – 8. You see a gorgeous girl at a party. You go up to her and before you say anything, another person comes and tells her: "Im rich. Will you marry me?" and she goes with him - Thats competition eating into your market share– 9. You see a gorgeous girl at a party. You go up to her and before you say: "Im rich, Marry me!" your wife arrives. - Thats restriction for entering new markets
  4. 4. Marketing is for Everybody• TO SHOW THAT MARKETING IS ESSENTIAL• PROVIDE AN UNDERSTANDING OF THE BASIC MARKETING CONCEPTS
  5. 5. The Nature of Marketing• What is the Purpose of Marketing? 1.Satisfaction: • Functional Satisfaction • Psychological Satisfaction • The Utility concept 2. Consumer Problems 3.Providing Benefit Bundles 4..Offering a Total Consumption System
  6. 6. Simple Marketing System Communication Goods/services Industry Market(a collection (a collection of sellers) Money of Buyers) Information
  7. 7. The Nature of Marketing• What is the Purpose of Marketing? Satisfaction • Increments of Satisfaction • Facilitating Exchanges –Conditions for Exchange•Systems of Exchanges
  8. 8. Evolving Views of Marketing’s Role Production Marketing Customer The customer as the controlling function and marketing as the integrative function
  9. 9. Traditional Organization Chart Top Management Middle Management Front-line people Customers
  10. 10. Customer-Oriented Organization Chart Customers Front-line people Middle management Top manage- ment
  11. 11. Core Concepts of MarketingTarget Markets & Segmentation Needs, Wants, and Demands Product or Offering Value and Satisfaction Exchange and Transactions Relationships and Networks Marketing Channels Supply Chain Competition Marketing Environment
  12. 12. Nike Town
  13. 13. Experiential marketing!?
  14. 14. Disney Experience!
  15. 15. Apple Store
  16. 16. Implications of marketing• Who are our existing / potential customers?• What are their current / future needs?• How can we satisfy these needs? • Can we offer a product/ service that the customer would value? • Can we communicate with our customers? • Can we deliver a competitive product of service?• Why should customers buy from us?
  17. 17. The marketing concept• choosing and targeting appropriate customers• positioning your offering• interacting with those customers• controlling the marketing effort• continuity of performance
  18. 18. Evolving Indian Consumer
  19. 19. The Indian Consumer’s Changing Spending Patterns Changing consumer behavior is catalyzing change inspending patterns, freeing up income for discretionary expenditure 27% 30% 32% 32% 36% 40% 2003 2008 2013 4% 4% 9% 5% 10% 20% 20% 20% 11% Food & Grocery Fuel, Transport & Communication Discretionary Expenditure Rent, Utilities & Education Savings & Investment
  20. 20. Emerging Trends
  21. 21. Shift to Thrift Redefining Value
  22. 22. Small Wonders Small Perk Me Up Products
  23. 23. ‘Mummy ka Magic’ Stays Intact
  24. 24. Eating ‘Out’ at Home Evolving Home Delivery Model
  25. 25. Taste Bhi, Health Bhi A very strong co-relation
  26. 26. Sattva Foods……..
  27. 27. Quality Walls’s “MOO” – Calcium Enriched !
  28. 28. Food On The Go Instant Pick Me Up
  29. 29. Eco Conscious A light shade of greenEco Conscious
  30. 30. Food As Discovery More Experimenting
  31. 31. The Food ‘Connect’ Use of Social Media
  32. 32. POP will remain Supreme The final test
  33. 33. The changing Indian consumer The media explosion. Increase in disposable income. The rise of the great Indian middle class Increase in the number of earning young people Change in expenditure patterns Increase in the number of working women 38
  34. 34. Successful marketing requires:• Profitable• Offensive (rather than defensive)• Integrated• Strategic (is future orientated)• Effective (gets results)
  35. 35. Nirma Little Girl!
  36. 36. “Surf” ad with Lalitaji!
  37. 37. Lux ad in 1950s!
  38. 38. Lux Beauty soap with Katrina!
  39. 39. Mantri Square, B’lore!
  40. 40. What is Marketing ? Selling ? Advertising ?Any thing more?
  41. 41. • SOME ISSUES ON MARKETING
  42. 42. Model of Consumer BehaviorMarketing Buyer’s Black Box Buyer’s ResponsesMixStimuli ? ? Psychological •Memory •Perception • Motivation • Product • Personality • Price Demographics • What is purchased? • Promotions • When, Timing? • Advertising • How much? Environmental •Place • Family • For what use? •Culture
  43. 43. Examples of Buying Motives: Psychological or Functional?• A senior wants to impress his date at the prom . His primary motive is …? Psychological
  44. 44. Examples of Buying Motives: Psychological or Functional?• A girl wants to remember her grandmother on her birthday. Her primary motive is…? Psychological
  45. 45. Examples of Buying Motives: Psychological or Functional?• A homemaker needs a new washing machine and has had good experiences with Sears. Her primary motive is …? Functional
  46. 46. Examples of Buying Motives: Psychological or Functional?• A teacher wants to buy a practical car to be used for family transportation. Her/His primary motive is …? Functional
  47. 47. Examples of Buying Motives: Psychological or Functional?• A career woman always buys Liz Claiborne clothes. Her primary motive is…? Psychological
  48. 48. Examples of Buying Motives: Psychological or Functional?• An overweight 40 year old man wants to loose weight so that he can reduce his blood pressure. His primary motive is…? Functional
  49. 49. Examples of Buying Motives: Psychological or Functional?• A homeowner needs to mow their lawn. Their primary motive is…? Functional
  50. 50. Consumer Buying Behavior Competency Functional Psychological Motive Motive The price is 40 cents off the regular price. It never needs ironing. Diamonds are forever. Serving you since 1971. Ninety-day warranty.
  51. 51. Consumer Buying Behavior Competency Functional Psychological Motive Motive Running shoe with built-in arch. It’s all the rage— colored action wear and style. Wheaties—the breakfast of champions! Steel-belted radial tires warranted for 40,000 miles A watch—a gift she will treasure always.
  52. 52. What is Marketing ?We use the word Marketing to describe such things as• analyzing the needs of the people• trying to guess what types of products they want• estimate how much they will buy• predict when they want to buy• determine where they go to buy the stuff
  53. 53. What is Marketing ?…. And,• figure out the best price to sell it at - and can you still make a profit selling it at that price• decide on promotional things to create awareness about the product• look at the competition to see what they are doing with pricing, features etc.
  54. 54. Marketing is concerned with anticipating consumer demand and directing flow of goods from producers to consumers.Marketing has to do with matching producers‟ outputs to consumers‟ inputs [ needs & wants ].Serving the needs of customers is what business should be all about … Marketing is the business function that interprets customer needs to the rest of the organization.Marketing should begin with the customer needs - NOT with the production process. Mkt. should anticipate needs.
  55. 55. Marketing - the formal definition Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals and organizational objectives.
  56. 56. Why should we know about Mkt.?• Also, Cause,,,,,,,,,,,,,,,,,, marketing people in a company bring in the money - so their jobs are important, so they get paid a lot.• If you get involved in the marketing side, you are being involved in the INCOME side of the company and your job is very critical (ie. - hard to ever fire you or lay you off)
  57. 57. The Importance of Marketing• Why study Marketing - „cause you can get a JOB in Marketing !!• Canada is a very multi-cultural country• We can buy products from all over the world• Selling new products to Canadians requires new marketing approaches - THEREFORE there will be many new job opportunities
  58. 58. The Importance of Marketing• Marketing is a core business discipline• The study of marketing is important to the basics of running a business, big or small• When you buy a product - the cost of marketing amounts to 40 ~ 60% of the total eg. If we buy shoes for Rs.800, Rs.400 of that 800 has been spent on marketing (including advertising, market research, development etc.)
  59. 59. The Importance of MarketingGetting a JOB in Marketing !!• Personal selling• Advertising• Package Design• Transportation• Storage• Marketing Research• Product Development• Wholesaling• Retailing
  60. 60. The Importance of MarketingImportance to Companies• When you work in the marketing department of a company you are part of LINE personnel• LINE personnel are always more critical than STAFF personnel because LINE personnel “bring in the money” - therefore your job is revenue earning, not revenue spending
  61. 61. Why should we know about Mkt.?• You can get to be C.E.O. and Chairman of the Board• “Marketing is often the route to the top”• Almost always the C.E.O. comes from the V.P. Marketing, not V.P. Human Resources or V.P. Government Relations
  62. 62. The Importance of MarketingGetting a JOB in Marketing !!In addition, many people working with NPO‟s also do marketing• Promoting political parties• Cultural groups• Religious organizations• Civic organizations eg. Kiwanas, Shriners• Charitable organizations eg. Red Cross, Salvation Army
  63. 63. Marketing• Marketing is something companies do, and it is also a characteristic of our society• “It is both a set of activities performed by organizations, and a social process”
  64. 64. Micro - marketing for a companyMacro - the whole economy
  65. 65. Micro - marketing for a company, thingsyou do to accomplish the organizationsobjectives (companies and NPO’s)Macro - the whole economy and its flow ofgoods and services from producers toconsumers
  66. 66. Micro - Its not just selling stuff, but alsolooking at what the customers wantMacro - Looking at how everybody in thecountry can have access to things they need.Government has to make sure everybodyhas fair access.
  67. 67. Micro-Macro Dilemma• Government has to step in cause not everything would be produced fairly by companies - so regulation needed• Ex .1: It would be cheaper to make cars without airbags and seatbelts - but Govt. insists they must – so, it has to be done.
  68. 68. Micro-Macro Dilemma• Government has to step in cause not everything would be produced fairly by companies - so regulation needed• Ex. 2: It would be cheaper to make beer cans from raw material cause the price of mineral ore is low - but the Govt. insists a certain % must be recycled to reduce waste and pollution
  69. 69. The Marketing FunctionsBuyingTransportingStoringGradingFinancingRisk TakingInformation CollectionResearch….
  70. 70. WHO does the marketing functions ?From a Macro-point of view• Centrally planned economy (communism) - its done mostly by the government• Market-direct economy (capitalism) - its done by various companies, middlemen, brokers etc.
  71. 71. Innovation is encouraged by a market-directed economy(capitalism) because people who come up with new ideas are free totry and market them and make a fortune. In a communist country,government has strict controls on the “means of production” sothere is a limit to what people can manufacture.In a capitalist economy, people are always trying think of new waysto satisfy un-met needs, and, this encourage new thinking
  72. 72. A380 - Interior
  73. 73. Reliance i Pad ( In association with Notion Ink, HYD. )
  74. 74. Rolls Royce Ghost!
  75. 75. Advocacy Advertising• You are not trying to sell a product, you are trying to get people to believe in something, or behave in a certain way eg. - Don’t drink and drive - Canadian Cancer Society - recycle - use the TTC, save gas
  76. 76. One of the big complaints about marketing is that ppl actunethical in order to make a sale.Sometimes it is easy to forget that morals are based on yourown cultural standards and in different cultures, people havedifferent opinions about what is ethical.Eg. Bribery is perfectly acceptable in some parts of Asiaand Latin America, but unacceptable in USA and Canada
  77. 77. Marketing Concept - Social Responsibility- “improve positive effects on Society and reduce negative effects…”- environmental problems- social responsibility conflicts with profit objective (raises ?, is mktg concept desirable)
  78. 78. Marketing Concept - Social Responsibility-? Of social responsibility cutting into profits- some companies have been very successful at dealing with this eg. BODY SHOP- they realize it is a way to endear themselves to trendy customers
  79. 79. Marketing Concept - Social Responsibility-? What if it cuts into profitsAnswer - increasing quality may cost more in production, but you may make this money back in increased sales which come about as the customers realize you have a very good quality product - this will reduce the advertising costs and customer service/warranty costs and ensure customer satisfaction re: brand loyalty
  80. 80. Company Orientations Towards the MarketplaceOrientation Description Relative Time Basic Managerial Span ObjectiveProduction Transition from Home Industrial Profit Maximization via Manufacturing to Factories Revolution Economies of ScaleProduct & Focus on Product Development, Profit MaximizationFinancial Performance and Features and Through Superior the Growth of Large Scale Product Performance Industrial Empires Sales Transition from Scarcity of Profit Maximization via Goods to Scarcity of Markets; Demand Generation Market Saturation with BasicsMarketing Transition from Internal 1990s Profit Maximization via (Organization) to External Matching of Products to (Customer) Basis for Guiding Customer Wants Marketing Decisions
  81. 81. The Marketing Concept A Customer Orientation Backed By Integrated Marketing Aimed at Generating CustomerSatisfaction and Repurchase As The Key To Satisfying the Organizations Goals
  82. 82. The Marketing Concept (Contd..) Focus Means EndSales Concept Products Selling & Profits Through Promotion Sales Volume Marketing Customer Needs Integrated Profits Through Concept Marketing Customer Satisfaction
  83. 83. Stages in Consumer Decision Process Word-of- Mouth Awareness Advertising Interest Channel Decision Product / Service Action Price Satisfaction
  84. 84. Cost of Losing and Attracting Customers• Cost of attracting a new customer can be upto 5 times the cost of keeping a current one happy• Cost of Offensive Marketing > Cost of Defensive Marketing• Some companies have increased profits from 25% to 85% by reducing defections by 5%
  85. 85. Developing An Effective Marketing Plan• Conduct A Marketing Review• Build A Marketing Strategy• Implement Strategy Via Marketing Mix• Evaluate The Success Of The Marketing Plan
  86. 86. Conduct A Marketing Review (3-C Analysis)A. Analysis of B. Assessment of C. Analysis ofCUSTOMER COMPANY COMPETITORSTrends, Needs, Capabilities and Current Position, Perceptions, Current Marketing Capabilities, Behavior Position Actions Opportunity Identification
  87. 87. Build A Marketing Strategy Generic Strategies For DIFFERENTIAL Selection of ADVANTAGE TARGET MARKET* Product Differentiation and Development of a * Cost Leadership POSITIONING * Special Market Focus STATEMENT
  88. 88. Implementation: The Marketing Mix (Four P’s) • Product • Price • Place • Promotion
  89. 89. 3C - 4P Framework BMWColgateIDS • Product NestlePDA / • CustomerInfiniti • Price Rohm&Haas • CompanySealed-Air • Promotion IntelBarco • Competitor • Place Dell
  90. 90. Marketing System Long Term Factors Technological Short Term Controllable FactorsEconomic Product Legal Place Price Promotion Socio / Cultural
  91. 91. Recasting the 3C - 4P Framework in Value Terms Creating Value • Product • Customer Capturing • Price • Company Value • Place • Competitor Communicating • Promotion Value
  92. 92. • The most important aspect of any company’s Marketing concept is identifying its SWOT Analysis.• What is SWOT analysis?
  93. 93. SWOT Analysis - Examples• Example 1 - Wal-Mart SWOT Analysis. Strengths - Wal- Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. Weaknesses - Wal-Mart is the Worlds largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control. Opportunities - To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region. Threats - Being number one means that you are the target of competition, locally and globally.
  94. 94. • Example 2 - Starbucks SWOT Analysis. Strengths - Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.Weaknesses - Starbucks has a reputation for new product development and creativity. Opportunities - New products and services that can be retailed in their cafes, such as Fair Trade products. Threats - Starbucks is exposed to rises in the cost of coffee and dairy products.
  95. 95. • Example 3 - 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.
  96. 96. • Example 4 - Indian Premier League (IPL) SWOT Analysis. Where will you find the Mumbai Indians, the Royal Challengers, the Deccan Chargers, the Channai Super Kings, the Delhi Daredevils, the Kings XI Punjab, the Kolkata Knight Riders and the Rajesthan Royals? In the Indian Premier League (IPL) - the most exciting sports franchise that the World has seen in recent years, with seemingly endless marketing opportunities (and strengths, weaknesses and threats of course!).
  97. 97. • Example 5 - Bharti Airtel SWOT Analysis. Weaknesses - An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field.
  98. 98. Replaying the Game• P&G: “We sell coffee” vs. “We sell canned coffee of moderate quality in groceries”• The brand we have built to sell mid-tier coffee will not cater to gourmet coffee position as its made of Robusta rather than Arabica beans. So we need to launch a new brand that preempts the quality position. We may need a new design (DSD), but we’ve done radical stuff before!• Most restaurants, food chains and institutions sell Coke or Pepsi (branded) but unbranded coffee. Once our gourmet brand is established in grocery stores, we may be able to move into the institutional market (after all, we sell to Wal-Mart!)• Whole bean provider: Could have built a brand by opening a café division. Took 7 years for Brothers to catch on. By opening the café format, regional whole bean providers could have built brand loyalty. Especially as they do not have P&G’s deep pockets. If the regional whole bean provider launched in 1991, could have built a national brand. By 1994, it was too late.• Starbucks: May have missed an opportunity by not aggressively expanding via franchising. Region by region rollout gave competitors / imitators time to preempt in certain markets. This way it would have “conquered” the retail business and could have focused more fully on institutional and grocery markets.
  99. 99. Caselet-1• While entering a developing country like India, MNCs should consider the factors to which consumers in India are sensitive. One such factor is price. Indian consumers are price sensitive. They always looks for value of money. This explains the success of Nirma washing powder which forced HLL to come out with a low prices detergent Wheel. Also the success of a product depends on the tastes and preferences of customers. Once McDonald’s customized its products according to the tastes and preferences of the Indian customers, it found acceptability in the market. Thus, before entering the Indian market, MNCs should do a proper study of the customers’ tastes and preferences , and this is particularly applicable to food products, because in India, food habits differ from region to region.
  100. 100. Caselet-2• During recession, most companies resort to downsizing and cutting costs related to advertising. But advertisement plays a crucial role in creating demand for goods. So it is not advisable to reduce costs related to advertising, rather expenditure on advertisements should increase during a recession. At this time, they build up their brands. If they do so, the companies will be in a competitive position once the recession is over and demand for goods picks up. Brand – building always involves spending on advertisements, packaging etc. Advertising during recession is also advisable because it reminds consumers about the product, and prevents the product from getting erased from consumers’ mind.

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