Micro and Macro Environment of Cadbury Dairy Milk

3/19/2013 orifice shimmy It was the early 1930s when a physician turned framework trade in rural Karnataka found his crinkle getting stop for want of regular supplies of cloth from the weavers. When he enquired with weavers about the reason for their irregularity, he was told that there was no working capital forthcoming to them. on that point were no banks in the bea. The one located in the t induce was not interested in lending to small operators p cunningicularly in the rural atomic account 18a.Local silver lenders used to vary very(prenominal) high rates of interest borrowing at those rates had ruined same in the past. The weavers therefore piss developed a habit of working intermittently as and when their own money from gross revenue come in. Introduction merchandise Module-1 Opening Case The trader therefore had to find a way to ensure invariable supply of exhaustivelys in his shop, without which his own stage business was not viable.He thought of deliver y the good from Mumbai, however found that the act be very dearly-won and time consuming, a the ara did not have any(prenominal) straight off road /rail links with Mumbai. Besides, transporters were not all reliable. Introduction selling occupies an important position in the organization of business unit. Any business is likely to be successful when a strong grocerying rack or philosophy permeates the thinking and guides the decision and actions of everyone in the business.A business exists lonesome(prenominal) if to serve people, and selling is the function that in general determines 1 3/19/2013 Introduction What the convergence or service shall be How it shall be presented, promoted and distributed How it shall be priced. What is merchandising? Classical Definitions ( Product Oriented View) The per smorgasbordance of business activities that shoot fors the prey of goods and services from producer to consumer or user selling consists of those efforts which con sider transfers in the ownership of goods and services and provide for their physical distributionWhat is food marketing? current Definitions ( Customer Oriented View) commercializeing is a social and managerial transition by which individuals and groups obtain what they need and want through creating, straiting, and freely exchanging products and services of value with new(prenominal)s According to American market association grocery storeing is the process of planning and executing the judgmention, pricing, packaging and distribution of ideas and services to create ex metamorphoses that fulfill individual and organizational goals What is marketing Management? merchandising Management is the art and science of choosing target market and getting, keeping and growing nodes through creating, delivering and communicating superior guest value merchandising Management is the trade image in action 2 3/19/2013 What is Marketed? Goods Services Events & Experiences Persons Places & Properties Organizations discipline Ideas A Brief register of Marketing 3 Areas Production Economies of scale. aboveboard products 1945 Birth of the mass consumer market 1950 Sales Development of sales forces to specialize products in competitive markets. Sold what companies wanted to sell.Evolving distribution channels 1960 increase diversity of media & technologies Marketing Rapidly increasing oppositionthe 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 Product (goods, services, knowledge) Price Promotion Place The dominant marketing template for the last 40 years But notice something homophile(a).Where is the customer mentioned? customers 3 3/1 9/2013 Development of Marketing Approaches growing Of Marketing Transactional consanguinity Production creation Product plan change purpose Marketing Concept Holistic Marketing one-off investment in products market segmentation short-term profit relationship- public figureing investment in customers customer analysis long-term profit Late 1800 Early 1900 Early 1930 mid(prenominal) 1950 1990 Production Concept Consumers prefer products that are widely available and cheesy Managers of production oriented businesses Concentrate on achieving high production efficiency, pathetic costs, and mass distribution.The production era can be divided into quadruplet phases ? Subsistence phase ? Made to order phase ? Early production for market phase ? Mass production for market phase Product Concept Consumers favor products that offer the most quality, per mixtureance, or innovative features. Managers in product oriented organizations focus their energy on making superior products and amend them over time. To improve quality and innovation companies gave importance to product engineering. near times the product concept leads to marketing myopia. Marketing myopia room focus on the product rather than customers need 4 3/19/2013Selling Concept The selling concept holds that consumers and businesses, if left alone, will unremarkably not buy enough of the organizational products. Consumers will buy products only if the beau monde sharp promotes/sells these products. The selling concept is practiced most aggressively with unsought goods that buyers normally do not think of buying much(prenominal) as insurance, encyclopedias etc. Firms practice the selling concept when they have over capacity. It gives more importance to seller involve Selling Concept scratch augur Factory Focus Existing products convey Selling and promotion Ends Profits through sales volumeThe selling concept Marketing Concept Focuses on needs/ wants of target markets & delivering value bett er than competitors. The Marketing concept holds that the key to achieving its organizational goals consists of the familiarity 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 ? sharpen Market ? Customer needs ? Integrated marketing ? Profitability Marketing Concept head start point Market Focus Customer charters Means Integrated Marketing Ends Profits through Customer pleasureThe Marketing concept 5 3/19/2013 Selling V/S Marketing Concept Starting point Factory 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 prototypical look ats the product and then figures out how to sell it. Importance selling to aggressive Focuses on the needs of buyer Profit through customer satisfaction Plann ing is long term oriented marketer first determines the needs and wants of the customers and then delivers 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 social Marketing Concept ? The social 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 social clubs 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 participation (Want Satisfaction) (Profits) 6 3/19/2013 Holistic Marketing outcome Conce pts of Marketing internality Concepts Needs, wants, and demands Marketing offers including products, services and experiences Value and satisfaction Exchange, proceedings and relationships Markets Need ? State of felt deprivation ? Example Need food Wants ? The form of needs as shaped by culture and the individual Demands ? Wants which are backed by buying power sum concepts of Marketing core Concepts of Marketing bone marrow 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, places, information or ideas centre of attention 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 fulfill 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 some(prenominal) exchanges are the goal ?Relationships 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 ? Set of actual and potential buyers of a product ? Marketers seek buyers that are profitable Core Concepts of Marketin g Core Concepts of Marketing Core Concepts Target Market Marketing place, Marketing musculus quadriceps femoris and Meta Market Segmentation Marketers chances Relationship Marketing and entanglements 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 obtain in a put in Market Space ? Market space is digital. As one goes shopping on internet Meta Market ? Meta market is a cluster of complementary color product and services that are foldly related in the minds of consumers but are spread across a a diverse embed 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 Netw orks Segmentation ? Grouping of consumers according to such characteristics as income, age, degree of urbanization, race, or education Core Concepts Target Market Market Place, market Marketer ?Marketer is seeking rejoinder. 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 backup stakeholders with whom it has built mutually profitable business relationshipMarketing transmission lines Supply concatenation Marketing Mix Com petition Sets of Inter dependent organizations involved in the process of making a product or service available for use or use 9 3/19/2013 Core Concepts of Marketing Core Concepts of Marketing Core Concepts Supply train ? longstanding channel stretching 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 tighten uses to espouse its marketing objectives in the target market. Product Pric e Place (Distribution) PromotionMarketing Channel Supply Chain Marketing Mix Competition Marketing take 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 arbitrary income It includes ?Generic Competition ? Brand Competition ? Form Competition ? labor Competition The actors and forces that discover a firms ability to build and m aintain successful relationships with customers. It consists of ? Internal Marketing Environment ? External Marketing Environment 10 /19/2013 Internal Marketing Environment ? ? ? ? ? ? These are controllable factors Value System Vision, mission, and Objectives Organizational organise Marketing module caller Reputation Financial Factors External Marketing Environment ? Micro environment Actors close to the company Micro Level Influences that fix a particular firm ? large environment Larger societal 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. genuine sources of supply are necessary for smooth functioning of business. It is very riskiness 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 help oneself to create and deliver customer value. Customers Customer markets must be studied. Market types ? Consumer ? Business ? Government ? Reseller ? global Competitors In general competitors are those who sell the goods and services of the same and comparable products in the same market. A firms competitors include not only the other firms which are marketing same products but also those who compete for the discretional income of the consumer. Successful companies provide better customer value than the competition ? coat and industry position help to determine the competitive stra tegy. 12 3/19/2013 Marketing Intermediaries Every producer has to appoint a bend 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 animal(prenominal) distribution firms Marketing services agencies Financial intermediaries Publics A public is any group that has actual or potential interest in or impress on companys ability to achieve its objectives. It is the work of the company to satisfy the people at large, which is necessary for future bond and growth. In order to build goodwill and seek favorable 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 unwieldy demographic Environment Study of the population in terms of age, sex, sizing of the population, family size, and occupation is known as demography. Rapidly increasing population indicates a growing demand for many products. Increasing population also indicates that approachability of surplus labour which affects the wage rates. 13 3/19/2013 Demographic Environment Population growth Population age mix pagan markets Educational groups Household patterns Geographical shifts Economic Forces Affects consumer purchasing power and expending patterns. Income Distribution Savings, Debt, and Credit factors relating to the economic conditions, systems, economic policies of a country and includes structure f economy, agriculture, industrial sectors, transportation etc Natural Environment Concern for the subjective environment has grown steadily, increasing the importance of these trends ? Shortage of raw materials ? increase pollution ? Increased governmental Technological Environment ?The technological environment is characterized by rapid change. ?New tec hnologies create new opportunities and markets but make old technologies obsolete. ?The U. S. leads the world in research and development spending. ? Pace of change ? 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 air 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, customs and traditions, tastes and preferences, languages etc. are the factors that affect t he Marketing strategy. trick up Analysis Marketing Challenges in the globalised Economy Grey marketing terrorist act Skills and Competence gaps in knowledge about Customer Preferences Cultural differences 15 3/19/2013 Marketing Challenges in the globalised Economy Nationalism perceptual constancy of Governments and Economic legislations. Corruption Property rights and Piracy Price Sensitivity climax replica operate 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 included Thomas Cook, American airlines, Swissair besides some(prenominal) others. However the big 3 clients accounted for over 60% of the total 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 durability of Travel solution Ltd had been augmented last year and the total number of employees touched to 120. Of th is, over 20 were senior executives, with stock options.The hardcore digit and systems work was executed by a team of 48 very highly paid executives, who formed 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 average age of the company employee was 27 turn the average salary was Rs. 4. 5 lakhs PA On September 21st, 2001, a board meeting of Travel solution Ltd was held in Bangalore at the home base to discuss and plan the strategy of the company for the next half year. 16 3/19/2013 17