This document discusses key concepts in marketing for the 21st century. It begins by defining marketing as creating, communicating, and delivering value to customers to benefit the organization. Marketing management is choosing target markets and getting, keeping, and growing customers through superior customer value. The core concepts discussed include needs, wants, demands, target markets, positioning, offerings, value, satisfaction, and competition. The document also discusses how the modern marketplace has changed due to technology, globalization, and informed consumers. It outlines the main tasks of marketing management and tools for analysis like SWOT and competitive dynamics using Porter's five forces model.

1. Defining Marketing
for the 21st Century
1
Marketing Management
A South Asian Perspective, 13th ed

2. CERTIFICATE
This is to certify that
Participated in the Public Speaking Competition on the VAW-2018 theme:
“ERADICATECORRUPTION – BUILD A NEW INDIA”
held on 31st October 2018
Jointly organized by BHEL, Electronics Division &
Acharya Bangalore BSchool, Bengaluru
and secured the
FIRST / SECOND / THIRD / CONSOLATION PRIZE
Mr./ Ms. ________________________________________________
a Student of Master of Business Administration
Shri Senthil Kumar G
Additional General Manager [Vigilance]
BHEL, EDN, Bengaluru
BHEL EDN
Vigilance
Awareness
Week (VAW)
2018
Dr. H R Venkatesha
Director – MBA Program
Acharya Bangalore B School, BengaluruDated : 31st October 2018

3. MODULE 1
• Importance of marketing,
• Core marketing concepts,
• Company orientation towards market place,
• Marketing management tasks,
• SWOT analysis,
• Competitive dynamics
Assignment :
Marketing strategies &
plans,

4. What is Marketing?
Marketing
is
an organizational function
& a set of processes
for
Creating, Communicating & Delivering Value
to
customers & for managing C’mer Reln
in ways that benefit the
organization & its stakeholders.

5. What is Marketing Management?
Marketing Management
is
The art & science
of
choosing target markets
&
getting, keeping, & growing
customers
Thr’
creating, delivering, & communicating
Superior Customer Value.

6. Selling is only the tip of the iceberg
“The aim of marketing is
to know & understand the customer
so well that the product or service fits him &
sells itself.
Ideally, marketing should result in a
customer who is ready to buy.
All that should be needed is to make the
product or service available.”
Peter Drucker

7. Copyright © 2009 Dorling
Kindersley (India) Pvt. Ltd.
What is Marketed?
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas

8. Importance
of
Marketing
Class Discussion

9. • Needs, wants, &
demands
• Target markets,
positioning,
segmentation
• Offerings & brands
• Value & satisfaction
• Marketing channels
• Supply chain
• Competition
• Marketing
environment
Core Marketing Concepts

10. Positioning
Press ads of the
Scorpio focused
on
the functional
features of the
vehicle & the
television ads
focused on
emotional benefits.

11. The marketplace isn’t what it used to be…
Information technology
Globalization
Deregulation
Privatization
Competition
Convergence
Consumer resistance
Retail transformation

12. New Consumer Capabilities
• A substantial increase in buying power
• A greater variety of available goods and services
• A great amount of information about practically anything
• More ease in interacting & placing & receiving orders
• An ability to compare notes on products and services
• An amplified voice to influence public opinion

13. Production
Selling Marketing
Product
Company Orientation
towards
Market Place

14. Marketing Management Tasks
• Develop market strategies and plans
• Capture marketing insights
• Connect with customers
• Build strong brands
• Shape market offerings
• Communicate & Deliver value
• Create long-term growth

15. SWOT
Analysis

16. Competitive Dynamics

17. Threat of new entrants
Profitable industries that yield high returns will attract new firms.
New entrants eventually will decrease profitability for other firms
in the industry. Unless the entry of new firms can be made more
difficult by incumbents, abnormal profitability will fall towards
zero (perfect competition), which is the minimum level of
profitability required to keep an industry in business.
The following factors can have an effect on how much of a threat new entrants may pose:
• The existence of barriers to entry (patents, rights, etc.). The most attractive segment is one
in which entry barriers are high and exit barriers are low.
• Government policy & Capital requirements
• Absolute cost
• Economies of scale
• Product differentiation
• Switching costs
• Expected retaliation
• Access to distribution channels
• Industry profitability (the more profitable the industry, the more attractive it will be to new
competitors)

18. Threat of substitutes
A substitute product uses a different technology to try to solve the same economic
need.
Examples of substitutes are meat, poultry, and fish; landlines and cellular
telephones; airlines, automobiles, trains, and ships; beer and wine; and so on.
For example, tap water is a substitute for Coke, but Pepsi is a product that uses the
same technology (albeit different ingredients) to compete head-to-head with Coke,
so it is not a substitute.
Increased marketing for drinking tap water might "shrink the pie" for both Coke
and Pepsi, whereas increased Pepsi advertising would likely "grow the pie"
(increase consumption of all soft drinks), while giving Pepsi a larger market share at
Coke's expense.
Potential factors:
• Buyer propensity to substitute
• Relative price performance of substitute
• Buyer's switching costs
• Number of substitute products available in the market
• Ease of substitution
• Availability of close substitute

19. Bargaining power of customers :
The bargaining power of customers is also described as the
market of outputs: the ability of customers to put the firm under
pressure, which also affects the customer's sensitivity to price
changes. Firms can take measures to reduce buyer power, such as
implementing a loyalty program. Buyers' power is high if buyers
have many alternatives. It is low if they have few choices.
Potential factors:
• Buyer concentration to firm concentration ratio
• Degree of dependency upon existing channels of distribution
• Buyer switching costs
• Buyer information availability
• Availability of existing substitute products
• Buyer price sensitivity
• Differential advantage (uniqueness) of industry products

20. Bargaining power of suppliers :
The bargaining power of suppliers is also described as the market
of inputs. Suppliers of raw materials, components, labor, and
services (such as expertise) to the firm can be a source of power
over the firm when there are few substitutes. If you are making
biscuits and there is only one person who sells flour, you have no
alternative but to buy it from them. Suppliers may refuse to work
with the firm or charge excessively high prices for unique
resources.
Potential factors are:
• Supplier switching costs relative to firm switching costs
• Degree of differentiation of inputs
• Impact of inputs on cost and differentiation
• Presence of substitute inputs
• Strength of distribution channel
• Supplier concentration to firm concentration ratio
• Supplier competition: the ability to forward vertically integrate and cut out
the buyer.

21. Industry rivalry
For most industries the intensity of competitive rivalry is the major
determinant of the competitiveness of the industry. Having an
understanding of industry rivals is vital to successfully market a
product. Positioning pertains to how the public perceives a product
and distinguishes it from competitors. A business must be aware of
its competitors marketing strategy and pricing and also be reactive
to any changes made.
Potential factors:
• Sustainable competitive advantage through innovation
• Competition between online and offline companies
• Level of advertising expense
• Powerful competitive strategy
• Firm concentration ratio
• Degree of transparency

22. Application of Model
Strategy consultants occasionally use Porter's five
forces framework when making a qualitative
evaluation of a firm's strategic position.
However, for most consultants, the framework is only
a starting point. They might use value chain or
another type of analysis in conjunction.

23. Strategy
Competitive Advantage

24. Strategy - Competitive Advantage
What is Competitive Advantage ?
Definition
A competitive advantage is an advantage
over competitors gained by offering
consumers greater value, either by means
of lower prices or by providing greater
benefits & service that justifies higher prices.

25. Competitive Strategies
Based on his work of analyzing the
competitive forces in an industry, Michael
Porter suggested three "generic" business
strategies that could be adopted in order to
gain competitive advantage.
The three strategies relate to the extent to
which the scope of a businesses' activities are
narrow versus broad and the extent to which a
business seeks to differentiate its products.

26. Porter’s Generic Strategies
• Goals indicate what a business
unit wants to achieve .
• STRATEGY is a game plan for
getting there.
• Every business must design a
strategy for achieving its goals,
consisting of a marketing strategy
compatible technology strategy

27. Porter’s Generic Strategies
Overall Cost Leadership
Differentiation
Focus
He has proposed three generic
strategies that provide a good
starting point for strategic thinking.

28. The differentiation and cost
leadership strategies seek
competitive advantage in a broad
range of market or industry segments.
By contrast, the differentiation
focus and cost focus strategies are
are adopted in a narrow market or

29. Overall Cost Leadership
Firms pursuing this strategy work hard to
achieve the lowest production &
distribution costs so they can price
lower than competitors & win a large
market share. They need less skill in
mktg. The problem with this strategy is
that other firms will usually compete

30. Strategy - Cost Leadership
With this strategy, the objective is to
become the lowest-cost producer in the
industry. Many (perhaps all) market
segments in the industry are supplied with
the emphasis placed minimizing costs. If the
achieved selling price can at least equal (or
near)the average for the market, then the
lowest-cost producer will (in theory) enjoy
the best profits.

31. Strategy - Cost Leadership
This strategy is usually
associated with large-scale
businesses offering "standard"
products with relatively little
differentiation that are perfectly
acceptable to the majority of
customers.

32. Strategy - Cost Leadership
Occasionally, a low-cost leader will
also discount its product to
maximize sales, particularly if it has
a significant cost advantage over the
competition and, in doing so, it can
further increase its market share.
• Examples of Cost Leadership: Nirma Detergent Powder , Babul Tooth
Tooth Paste,Tata Neno Car

33. Differentiation
The business concentrates on
uniquely achieving superior
performance in an important
customer benefit area valued by
a large part of the market. Thus
the firm seeking quality
leadership ,
e.g. firm must make products with the best
components , put them together expertly ,

34. Strategy - Differentiation
• This strategy involves selecting
one or more criteria used by
buyers in a market - and then
positioning the business
uniquely to meet those
criteria. This strategy is usually
associated with charging a
premium price for the product
- often to reflect the higher

35. • Differentiation is about
charging a premium price
that more than covers the
additional production costs,
and about giving customers
clear reasons to prefer the
product over other, less
differentiated products.

36. Focus
The business focuses on one
or more narrow market
segments.
The firm gets to know these
segments intimately and
pursues either cost
leadership or differentiation
within the target segment.

37. Strategy - Differentiation Focus
• In the differentiation focus strategy, a
business aims to differentiate within just
one or a small number of target market
segments. The special customer needs of
the segment mean that there are
opportunities to provide products that are
clearly different from competitors who may
be targeting a broader group of customers.
The important issue for any business
adopting this strategy is to ensure that
customers really do have different needs
and wants - in other words that there is a
valid basis for differentiation - and that

38. Strategy - Cost Focus
Here a business seeks a lower-
cost advantage in just on or a
small number of market
segments. The product will be
basic - perhaps a similar
product to the higher-priced
and featured market leader, but
acceptable to sufficient
consumers. Such products are