Micro and Macro Environment of Cadbury Dairy Milk

3/19/2013 Opening Case It was the early thirties when a physician turned textile trade in rural Karnataka found his business get interrupted for fatality of regular supplies of cloth from the weavers. When he enquired with weavers ab come on the reason for their irregularity, he was told that there was no kneading capital available to them. There were no banks in the argona. The one located in the t knowledgeship was not interested in lending to sm each(prenominal) operators particularly in the rural atomic number 18a.Local money lenders utilize to change very high rates of interest borrowing at those rates had ruined equivalent in the past. The weavers therefore pull in developed a habit of working intermittently as and when their own money from sales come in. Introduction selling Module-1 Opening Case The trader therefore had to hold a way to ensure uninterrupted supply of goods in his shop, without which his own business was not viable.He image of bringing the good from Mumbai, but found that the process be very expensive and time consuming, a the ara did not have any direct road /rail links with Mumbai. Besides, transporters were not all reliable. Introduction trade occupies an important fleck in the organization of business unit. Any business is seeming to be successful when a strong merchandising viewpoint or philosophy permeates the thinking and guides the close and actions of everyone in the business.A business exists just to serve lot, and marketing is the function that primarily determines 1 3/19/2013 Introduction What the crossroad or work shall be How it shall be presented, promoted and distributed How it shall be priced. What is market? Classical Definitions ( ingathering point View) The performance of business activities that directs the flow of goods and services from producer to consumer or user merchandising consists of those efforts which restore transfers in the ownership of goods and services and provide for th eir physical distributionWhat is trade? Modern Definitions ( node Oriented View) merchandising is a social and managerial process by which individuals and groups obtain what they need and want through with(predicate) creating, offering, and freely exchanging products and services of judge with differents According to American Marketing association Marketing is the process of homework and executing the impressionion, pricing, promotion and distribution of ideas and services to create exchanges that satisfy individual and organizational goals What is Marketing guidance? Marketing Management is the art and science of choosing target market and getting, keeping and festering clients through creating, rescueing and communicating superior customer value Marketing Management is the marketing cast in action 2 3/19/2013 What is Marketed? Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas A Brief History of Marketing 3 Areas labor E conomies of scale. Simple products 1945 Birth of the mass consumer market 1950 Sales Development of sales forces to distinguish products in war-ridden markets. Sold what companies wanted to sell.Evolving distribution channels 1960 Increasing diversity of media & technologies Marketing Rapidly increasing argumentthe fight for customers. A Brief History of Marketing 1960s A Brief History of Marketing Massive rise in customer expectations Increasing competition Massive growth in advertising Growth in direct marketing Much easier for customers to switch business Proliferation of channels, dictated increasingly by customers a growing need for 2-way dialogue between business & The 4 Ps merchandise (goods, services, knowledge) terms Promotion Place The dominant marketing template for the last 40 twelvemonths But pick up something curious.Where is the customer mentioned? customers 3 3/19/2013 Development of Marketing Approaches Evolution Of Marketing Transactional kindred Production apprehension Product Concept Selling Concept Marketing Concept Holistic Marketing one-off investment in products market segmentation short-term profit dealingship-building investment in customers customer abstract long-term profit Late 1800 Early 1900 Early 1930 Mid 1950 1990 Production Concept Consumers prefer products that argon widely available and inexpensive Managers of production oriented businesses Concentrate on achieving high production efficiency, let out costs, and mass distribution.The production era can be divided into four phases ? Subsistence phase ? Made to pose phase ? Early production for market phase ? Mass production for market phase Product Concept Consumers favor products that offer the most quality, performance, or innovative features. Managers in product oriented organizations contract their muscularity on making superior products and improving them over time. To improve quality and intention companies gave enormousness to product engineering. Some times the product concept leads to marketing myopia. Marketing myopia means localize on the product rather than customers need 4 3/19/2013Selling Concept The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizational products. Consumers will buy products nevertheless if the party aggressively promotes/sells these products. The selling concept is practiced most aggressively with unsought goods that buyers normally do not think of buying such as insurance, encyclopedias etc. Firms practice the selling concept when they have over capacity. It gives more importance to seller require Selling Concept Starting point milling machinery instruction Existing products Means Selling and promotion Ends Profits through sales volumeThe selling concept Marketing Concept Focuses on needs/ wants of target markets & delivering value better than competitors. The Marketing concept holds that the headstone to achieving its organizationa l goals consists of the smart set being more effective than competitors in creating delivering and communicating superior customer value to its chosen target markets. The Marketing concept rests on four pillars ? mug Market ? Customer needs ? integrate marketing ? Profit top executive Marketing Concept Starting point Market Focus Customer Needs Means Integrated Marketing Ends Profits through Customer rejoicingThe Marketing concept 5 3/19/2013 Selling V/S Marketing Concept Starting point milling machinery Selling V/S Marketing Concept Ends Profits through sales volume Focus Existing products Means Selling and promotion Focuses on the needs of seller Profit through sales volume Planning is short term oriented Marketer first makes the product and then figures out how to sell it. Importance selling to aggressive Focuses on the needs of buyer Profit through customer blessedness Planning is long term oriented Marketer first determines the needs and wants of the customers and then de livers the product to satisfy those needs and wants.Importance integrated marketing (a) The selling concept Market Customer needs Integrated marketing Profits through customer satisfaction (b) The marketing concept Societal Marketing Concept ? The Societal Marketing concept holds that organizations task is to determine the needs , wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in way that preserve the customers and societys well being. ? It calls upon marketers to build social and ethical considerations into their marketing practices. There should be balance between company profits, customer satisfaction, and public interest. Societal Marketing Concept Society (Human Welfare) Societal Marketing Concept Consumers corporation (Want Satisfaction) (Profits) 6 3/19/2013 Holistic Marketing encumbrance Concepts of Marketing Core Concepts Needs, wants, and demands Marketing offers including products, services and experiences Value and satisfaction Exchange, transactions and relationships Markets Need ? State of felt deprivation ? Example Need intellectual nourishment Wants ? The form of needs as shaped by culture and the individual Demands ? Wants which are backed by buying powerCore concepts of Marketing Core Concepts of Marketing Core Concepts Needs, wants, and demands Marketing offers including products, services and experiences Value and satisfaction Exchange, transactions and relationships Markets Marketing offer ? Combination of products, services, information or experiences that satisfy a need or want ? Offer may include services, activities, people, shows, information or ideas Core Concepts Needs, wants, and demands Marketing offers including products, services and experiences Value and satisfaction Exchange, transactions and relationships Markets Value Customers form expectations regarding value ? Marketers must deliver value to consumers Satisfaction ? A genial customer will buy again and tell others about their good experience 7 3/19/2013 Core Concepts of Marketing Core Concepts of Marketing Core Concepts Needs, wants, and demands Marketing offers including products, services and experiences Value and satisfaction Exchange, transactions and relationships Markets Exchange ? The act of obtaining a desired object from someone by offering something in return ? One exchange is not the goal, relationships with several exchanges are the goal ? bloods are built through delivering value and satisfaction Core Concepts Needs, wants, and demands Marketing offers including products, services and experiences Value and satisfaction Exchange, transactions and relationships Markets Market ? watch of actual and potential buyers of a product ? Marketers seek buyers that are profitable Core Concepts of Marketing Core Concepts of Marketing Core Concepts manoeuver Market Marketing place, Marketing length and Meta Market cleavage Mark eters mind-sets Relationship Marketing and Networks Distinctive category of market which includes market for companys products and services Core Concepts Target Market Market Place, Market Space and Meta Market Segmentation Marketers Prospects Relationship Marketing and Networks Market place ? Market place is physical. As one goes shopping in a store Market Space ? Market space is digital. As one goes shopping on internet Meta Market ? Meta market is a cluster of complementary product and services that are closely related in the minds of consumers but are spread across a a diverse set of industries. 8 3/19/2013Core Concepts of Marketing Core Concepts of Marketing Core Concepts Needs, wants, and demands Market place, Market space and Meta market Segmentation Marketers Prospects Relationship Marketing and Networks Segmentation ? Grouping of consumers according to such characteristics as income, age, degree of urbanization, race, or education Core Concepts Target Mar ket Market Place, market Marketer ?Marketer is seeking response. someone Space and Meta Market Prospect ?Prospect is someone giving response. Segmentation Marketers and Prospects Relationship marketing nd Network Core Concepts of Marketing Core Concepts of Marketing Core Concepts Target Market Market Place, market Space and Meta Market Segmentation Marketers and Prospects Relationship Marketing and Network Relationship Marketing ? Building mutually satisfying long-term relations with key partiescustomers, supplies, distributors in order to earn and retain their business Core Concepts Marketing Network ? Marketing network consists of the company and its supporting stakeholders with whom it has built mutually profitable business relationshipMarketing Channels tot train Marketing fuse Competition Sets of Inter dependent organizations involved in the process of making a product or service available for use or consumption 9 3/19/2013 Core Concepts of Marketing Core C oncepts of Marketing Core Concepts Supply range of mountains ?Longer channel stretch from raw materials to components to final products that are carried to final buyers Core Concepts Marketing Mix ? MM is the set of marketing tools, the square uses to pursue its marketing objectives in the target market. Product Pric e Place (Distribution) PromotionMarketing Channel Supply Chain Marketing Mix Competition Marketing Channels Supply Chain Marketing Mix Competition Core Concepts of Marketing Marketing Environment Core Concepts Marketing Channels Supply Chain Marketing Mix Competition Competition ?Rivalry to attract customers discretionary income It includes ?Generic Competition ? instigant Competition ? Form Competition ? Industry Competition The actors and forces that extend to a firms ability to build and maintain successful relationships with customers. It consists of ? Internal Marketing Environment ? External Marketing Environment 10 /19/2013 Internal Marketin g Environment ? ? ? ? ? ? These are controllable factors Value System Vision, mission, and Objectives Organizational grammatical construction Marketing Staff telephoner Reputation fiscal Factors External Marketing Environment ? Microenvironment Actors close to the company Micro Level Influences that reach a particular firm ? Macro environment Larger social forces Macro Level Influences that affect all firms The Microenvironment Forces in the Microenvironment companys immediate environment and that affect the companys ability to produce goods and services and serve consumers. 1 3/19/2013 Suppliers Suppliers are those who supply the raw material and components to the company. Reliable sources of supply are necessary for smooth functioning of business. It is very risk to depend on a single supplier because a strike, lockout or any other production problem with supplies may seriously affect the company. ? Treat suppliers as partners. Customers A business exits only because of its customers. A company may have different categories of customer like individuals, households. Industries and other institutions.Depending on a single customer is risky because it may place company in poor bargaining position. Suppliers answer to create and deliver customer value. Customers Customer markets must be studied. Market types ? Consumer ? Business ? Government ? Reseller ? planetary Competitors In general competitors are those who sell the goods and services of the same and similar products in the same market. A firms competitors include not only the other firms which are marketing same products but also those who repugn for the discretionary income of the consumer. Successful companies provide better customer value than the competition ? Size and industry position help to determine the competitive strategy. 12 3/19/2013 Marketing Intermediaries Every producer has to name a number of intermediaries in assisting him in promoting, selling and distributing the goods and services to ultimate customers. Marketing intermediaries help the firm in overcoming the discrepancies in quality , place, assortment. ?Intermediaries take many forms. Resellers Physical distribution firms Marketing services agencies Financial intermediaries Publics A public is any group that has actual or potential interest in or impact on companys ability to achieve its objectives. It is the duty of the company to satisfy the people at large, which is necessary for future stay and growth. In order to build goodwill and seek easy response from the public, it is necessary for the firm to satisfy the needs of the public as well. Macro Environment These factors are external to the firm and are quite uncontrollable Demographic Environment Study of the population in terms of age, sex, size of the population, family size, and occupation is known as demography. Rapidly increasing population indicates a growing demand for many products. Increasing population also ind icates that availability of surplus labour which affects the wage rates. 13 3/19/2013 Demographic Environment Population growth Population age mix cultural markets Educational groups Household patterns Geographical shifts Economic Forces Affects consumer purchasing power and spending patterns. Income Distribution Savings, Debt, and Credit factors relating to the stinting conditions, systems, economic policies of a country and includes structure f economy, agriculture, industrial sectors, transportation etc Natural Environment line of work for the natural environment has grown steadily, increasing the importance of these trends ? Shortage of raw materials ? change magnitude pollution ? increase governmental Technological Environment ?The technological environment is characterized by rapid change. ?New technologies create bran-new opportunities and markets but make old technologies obsolete. ?The U. S. leads the world in research and development spending. ? Pace of chan ge ? Opportunities for innovation ? Varying R&D budgets ? Increased regulation of change ntervention ? Shortage of raw materials ? Increased energy costs ? Anti-pollution pressures ? Governmental protections 14 3/19/2013 The Political Environment Includes laws, governmental agencies, and pressure groups that impact organizations and individuals. Increased legislation to protect businesses as well as consumers. Changes in governmental agency enforcement. Increased emphasis on ethical behavior and social responsibility. The Cultural Environment Is composed of institutions and other forces that affect a societys basic values, perceptions, preferences, and behaviors. The cultural factors like buying and consumption habit of the people, impost and traditions, tastes and preferences, languages etc. are the factors that affect the Marketing strategy. SWOT Analysis Marketing Challenges in the globalised Economy grey-headed marketing Terrorism Skills and Competence gaps in knowledg e about Customer Preferences Cultural differences 15 3/19/2013 Marketing Challenges in the globalised Economy Nationalism Stability of Governments and Economic legislations. Corruption Property rights and plagiarization Price Sensitivity Closing re-create Travel solution Ltd is a cutting edge IT Company in India. Its domain expertise is in finding software solutions for the Travel Industry. Its Client list include Thomas Cook, American airlines, Swissair besides several others. However the big 3 clients accounted for over 60% of the conglomeration business. The sales turnover of the company in the last financial year was Rs. 18 crore, of which over 90% was export earnings. Closing Copy The team strength of Travel solution Ltd had been augmented last year and the total number of employees touched to 120. Of this, over 20 were senior executives, with stock options.The hard marrow squash design and systems work was executed by a team of 48 very highly paid executives, who form ed the core team. This team was normally on deputation at client sites all year around. Closing Copy In the last 3 months, over 40 executives had been taken in, primarily in marketing, administration and HR. The modal(a) age of the company employee was 27 while the average salary was Rs. 4. 5 lakhs PA On folk 21st, 2001, a board meeting of Travel solution Ltd was held in Bangalore at the headquarters to discuss and plan the strategy of the company for the next half year. 16 3/19/2013 17