2. Managerial definition of Marketing: Marketing has often been described as “ the art of selling products”, but people are surprised when they hear that the most important part of marketing is not selling; selling is only the tip of marketing iceberg. Peter Drucker, a leading management theorist, puts it this way: “ There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.

3. American Marketing Association defines marketing as: Marketing is a process of planning and executing the conception, pricing, promotion and distribution of ideas, goods & services and to create exchanges that satisfy individual and organizational goals. Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. We see marketing management as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering and communicating superior customer value.

7. Horizons of Marketing to Non-Profit and social causes: Today business is not only confined to business firms. Rather, it has been also adopted by non-profit organizations for social causes also. We can see that Government of India has started using the marketing principles for propagating for causes like family planning, child care, immunization of children against diseases like tetanus, thyroid, polio, cholera and also child marriage and dowry. Cause Marketing: This is another area where marketing tools are used for promotion of social causes. In a country like India, where ignorance and illiteracy still continues to be high, it is critical that the marketer lends support to the Government to market these causes.

10. 10) Supply Chain. 11) Competition: a) Brand Competition: b) Industry Competition: c) Form Competition: d) Generic Competition: 12) Marketing Environment: 1) Task Environment: 2) Broad Environment: a) Demographic Environment. b) Economic Environment. c) Natural Environment. d) Technological Environment. e) Political or Legal Environment. f) Social or Cultural Environment.

21. According to General Electric (GE): “ The marketing manager is the most significant functional contributor to the strategic planning process, with leadership roles in defining the business mission; analysis of the environmental, competitive, and business situations; developing objectives, goals, and strategies; and defining product, market, distribution, and quality plans to implement the business’s strategies. This involvement extends to the development of programs and operating plans that are fully linked with the strategic plan.” STRATEGIC PLANNING: Most large companies consist of 4 organizational levels: 1) The Corporate Level:

22. Corporate headquarters is responsible for designing a corporate strategic plan to guide the whole enterprise. It makes decisions on amount of resources to allocate to each division as well as on which businesses to start or eliminate. 2) At Division Level: Each division establishes a division plan covering the allocation of funds to each business unit within the division. 3) At Business-Unit Level: Each business-unit develops a strategic plan to carry that business unit into a profitable future. 4) Product Level: Finally each product level (product line, brand) within a

31. 2) Stars: The market leaders in a high-growth market. A star does not necessarily produce a positive cash flow for the company. The company must spend substantial funds to keep up with the high market growth, and to fight off competitors attack. 3) Cash Cows: Stars with a falling growth rate that still have the largest relative market share and produce a lot of cash for the company. The company does not have to finance expansion because the market’s growth rate has slowed. 4) Dogs: Businesses that have weak market shares in low-growth markets. The company should consider whether it is holding on to these businesses for good reasons.

32. The BCG Matrix with Cash Flow

34. Basis of the BCG Portfolio Matrix: Time Introductory Phase “?” Growth Phase “Star” Sales Volume Maturity Phase “Cash Cow” Decline Phase “Dog” BCG MATRIX

38. Whose size is proportional to the size of the relevant market. Eg: GE’s Hydraulic Pump’s business: Market Attractiveness: Dimensions Weight Rating(1-5) Value overall market size 0.20 4 0.80 Annual Market growth rate 0.20 5 1.00 Historical Profit Margin 0.15 4 0.60 Competitive Intensity 0.15 2 0.30 Technological Requirements 0.15 4 0.60 Inflationary Vulnerability 0.05 3 0.15 Energy Requirements 0.05 2 0.10 Environmental Impact 0.05 3 0.15 1.00 3.70

39. Business Strength: Dimension Weight Rating(1-5) Value Market Share 0.10 4 0.40 Share Growth 0.15 2 0.30 Product Quality 0.10 4 0.40 Brand Reputation 0.10 5 0.50 Distribution Network 0.05 4 0.20 Promotional Effectiveness 0.05 3 0.15 Productive Capacity 0.05 3 0.15 Productive Efficiency 0.05 2 0.10 Unit Costs 0.15 3 0.45 Material Supplies 0.05 5 0.25 R&D Performance 0.10 3 0.30 Managerial Personnel 0.05 4 0.20 1.00 3.40

41. Business Unit Strategic Planning: SWOT Analysis: External Environment Analysis (Opportunity and Threat) In general a business has to monitor key macro environment forces, and significant micro environment actors that affect the ability to earn profits. The business unit should setup a marketing intelligence system to track trends and important developments. For each trend or development, management needs to identify the associated opportunities and threats . The major purpose of environmental scanning is to adopt new marketing opportunities. A marketing opportunity is an area of buyer need or potential interest in which a company can perform profitably . Opportunities can take many forms and marketers have to be good in spotting them

44. Internal Environment Analysis ( Strengths/Weaknesses) It is one thing to adopt attractive opportunities and another to be able to take advantage of these opportunities. Each business needs to evaluate its internal strengths and weaknesses. The company does not have to correct all its weaknesses, nor should it boast about all its strength. The big question is whether the business should limit itself to those opportunities where it possesses the required strength or whether it should consider better opportunities where it might have to acquire or develop certain strengths.

46. 2) Objectives should be stated quantitatively whenever possible. 3) Goals should be realistic. They should arise from an analysis of the business unit’s opportunities and strengths, not from wishful thinking. 4) Objectives must be consistent. It is not possible to maximize both sales and profits simultaneously. Other important trade-offs include short-term profit versus long-term growth, deep penetration of existing markets versus developing new markets, profit goals versus nonprofit goals, and high growth versus low risk . Each choice in this set of trade-offs calls for a different marketing strategy.

48. Operational Effectiveness and Strategy : According to Porter , firms pursuing the same strategy directed to the same target market constitute a strategic group. The firm that carries out that strategy best will make the most profits. Firms that do not pursue a clear strategy and try to be good on all strategic dimensions do the worst. Porter defines strategy as “the creation of a unique and valuable position involving a different set of activities.” A company can claim that it has a strategy when it “performs different activities from rivals or perform similar activities in different ways.” Porter's five forces : NEXT SLIDE

49. Porter's five forces analysis is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It uses concepts developed in Industrial Organization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competences, business model or network to achieve a profit above the industry average.

54. This five forces analysis is just one part of the complete Porter strategic models. The other elements are the value chain and the generic strategies.

56. Program Formulation and Implementation: Once the business unit has developed its principle strategies, it must work out detailed supporting programmes. If the unit has decided to attain technological leadership, it must plan programmes to strengthen its R&D department, gather technological intelligence, develop leading-edge products, train the technical sales force, and develop ads to communicate its technological leadership. A great marketing strategy can be sabotaged by poor implementation. According to McKinsey & Company, strategy is only one of seven elements in successful business practice. McKinsey’s 7-S framework of business is:

59. Feedback and Control: As it implements its strategy, the firm needs to track the results and monitor new developments. Some environments are fairly stable from year to year. Other environments evolve slowly in a fairly predictable way. Still other environments change rapidly in major and unpredictable ways. Nonetheless, the company can count on one thing: The marketplace will change; and when it does the company will need to review and revise its implementation , programmes, strategies or even objectives.