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Organised Business is a sector where the employment terms are fixed and regular, and the employees get assured work. Unorganised Business is one where the employment terms are not fixed and regular, as well as the enterprises, are not registered with the government.
Size and contribution to GDP The Economic Survey of 2018-19, released on July 4, 2019, says "almost 93%" of the total workforce is 'informal'. But the NitiAayog's Strategy for New India at 75, released in November 2018, said: "by some estimates, India's informal sector employs approximately 85% of all workers". Sources Business Today July 15, 2019 https://www.businesstoday.in/sectors/jobs/labour-law-reforms-no-one-knows-actual-size-india-informal- workforce-not-even- govt/story/364361.html#:~:text=Size%20and%20contribution%20to%20GDP,85%25%20of%20all%20workers %22.
• India is the third-largest by purchasing power parity (PPP) • The long-term growth perspective of the Indian economy remains positive due to its young population and corresponding low dependency ratio, healthy savings and investment rates • With 520 million workers, the Indian labour force is the world's second-largest as of 2019 • The service sector makes up 55.6% of GDP and remains the fastest growing sector, while the industrial sector and the agricultural sector employs a majority of the labor force • India's telecommunication industry is the world's second largest by number of mobile phone, smartphone, and internet users • The Indian automobile industry is the world's fourth largest by production. which contributes over 10% of India's GDP and has one of world's fastest growing e-commerce markets. • The Indian textiles industry is estimated at $150 billion and contributes 7% of industrial output and 2% of India's GDP while employs over 45 million people directly • Nearly 66% of India's population is rural whose primary source of livelihood is agriculture, and contributes about 50% of India's GDP
Definition of Marketing Dr. Philip Kotler defines Marketing is a societal process by which individual and groups obtain what they need and want by creating, offering, and freely exchanging products and services of value with others
Societal process Need and want Need Felt sense of deprivation(lack) of some basic necessities. Want Specific need satisfier
MARKETING THEORY OF EXCHANGE OUR SPECIALIZED OFFERINGS Bagozzi Back in 1975 a gentleman called Introduced the Marketing Theory of Exchange that has become essential to all elements of marketing research and practice. He posited that there were three types of exchange: Restricted, General and Complex.
Restricted Exchange. One of the types of exchange in marketing is known as the simple or "restricted" exchange, so called because there are only two parties to the exchange. Restricted exchanges are one-on-one relationships, so both parties must receive approximately equal utility if the exchange is to be repeated. A B
Generalised Exchange A generalized exchange involves at least three parties, and each party gives utility to one participant, but receives utility from a different participant. For example, if a woman calls in an order for lunch to be delivered and pays with a credit card over the phone, and the restaurant employs a delivery driver to bring the food, then the woman gives utility to the restaurant, but receives utility from the driver A B C D
Complex Exchanges Most types of relationship marketing are complex, they involve networks of participants who both give and receive in more than one relationship with each other. For example, a car manufacturer hires an advertising agency, which places an ad on a TV show, which provides entertainment to its viewers, some of whom will see the ad, then buy the car from a dealer, which buys its cars from the manufacturer. The manufacturer, ad agency, TV station, consumer and dealer are all involved in a complex network of marketing exchanges with each other, and all of them receive utility from the relationship
Utility Concept of Exchange Utility is what motivates people to engage in a marketing exchange. In theory, both parties must receive more than what they give. For instance, the man/women buying the cup of coffee is more motivated to drink coffee than he/she is to hold on to his money, so he/she receives utility from the exchange. However, the coffee shop owner also receives utility from the exchange because the amount he/she receives for the cup of coffee is greater than what the coffee is worth, enabling his/her to make a profit.
Customer delight Customer delight happens when you surprise a customer (or client) by exceeding expectations. When expectations are met, you have customer satisfaction. When expectations are exceeded, you achieve customer delight. Customer satisfaction refers to how well you, as a product or service provider, fulfill the needs and expectations of your customers.
What is consumption? Consumption is the spending on consumer goods and services over a given period of time. Total consumption is one way to measure the performance of an economy as consumers tend to spend more money when the economic climate is good and confidence is high. Strong levels of consumption in the economy usually means that businesses are experiencing high demand for their products which will increase their profit levels.
Concept of value (The worth of something) Value is the capacity of a good, service, or an activity, or activities of an organization to satisfy a need, or provide benefit to a person or legal entity. Values play an important role in the integration and fulfillment of his/her basic impulses and desires in a stable and consistent manner appropriate for his/her living. Shareholder value Shareholder value is the value enjoyed by a shareholder by possessing shares of a company. It is the value delivered by the company to the shareholder. Increasing the shareholder value is of prime importance for the management of a company. The higher the shareholder value, the better it is for the company and management. In simple, value is created for shareholders when the business increases profits.
Value to the Customer Customer value is the perception of what a product or service is worth to a customer versus the possible alternatives. Worth means whether the customer feels s/he got benefits and services over what s/he paid.
Delivering value to customers • Focus on brand perception. • Get customer feedback. • Make a unique product. • Provide a positive experience. • Provide your customers with a satisfaction guarantee. • Identify your strengths. • Give customer what they want. • Find out the issue and fix them.
Customer life time value Emphasizing the focus of the customer journey on the importance of long-term customer relationship is called Customer life time value. Valuing a customer to your company, not just on a purchase-by-purchase basis but across the whole relationship.
Increasing Customer Lifetime value • Take Customer Advice (and Credit Them for It) • Stay in Touch Through Email Marketing, social media marketing • Give Customers Something Your Competitors Aren’t • Be More Convenient than Anyone Else • Make Quality a Priority
Acquiring new Customer • Look For New Ambassadors • Connect With New People Daily • Ask For Referrals From Happy Clients • Highly targeted advertising • Developing business partnerships • Focus on benefits over features. • Be present on social media. • Make your brand known on forums. • Offer deals and promotions
Building Customer through CRM and loyalty program The more you know about your customers, the more you can strive to accommodate their needs. CRM offers engagement and information gathering tools to help you learn more about your customers
Steps to Create Customer loyalty program Study your current customers • How much does this customer buy in a year? What type of products do they buy • How long have they been a customer? • Can we sell them other products? • How fast do they pay? • How satisfied are they with our company? • Set a budget • Set a budget for managing customer retention and a separate one for developing new customers. Decide which customers to target Choose tactics that will encourage client loyalty
In 2002, its flagship brand - Bindu Fizz Jeera Masala - drink was launched.
Appreciated by renowned digital gurus across the web Appreciated by renowned digital gurus across the web Being single is cool if you are single as Being single is cool if you are single as pringle pringle Campaign reached over 7.5 million with is 3 days & 40000 conversation Campaign reached over 7.5 million with is 3 days & 40000 conversation
Module – 2 Fundamental Insights for Strategic Marketing
Market insight A market insight is the discovery of a relevant, actionable and previously unrealized reality about a target market as the result of deep, subjective data analysis For example, key market insights can be used to: ● Find new revenue sources ● Develop marketing campaigns and pricing strategies ● Measure current performance against market potential ● Monitor brand awareness and customer sentiment ● Learn how your target market actually uses your innovation on a daily basis, as well as their thought process during the buying process ● Understand what draws businesses to purchase from your competitors ● Utilize previous buying patterns or behaviors to offer customized interactions or predict future actions
What is Product Evolution? A product evolution is a cycle where the products evolves in terms of features, functionalities, quality, offerings, technology, fashion & trend, new manufacturing methods etc. to better serve its purpose and customer needs. This may be due to several reason and the new technology developments are prime reason for this. The product evolution can be seen in every product be it a mobile phone which are becoming smart and evolving every year or be it a television set which evolved from a black and white models to colored to plasma then LCD and now LED and is still evolving. https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/16612-product-evolution.html
What is Market Evolution? Market evolution refers to changes in primary demand for a product class and changes in technology. The distinct phases that businesses have gone through as they continued to seek new and innovative ways to achieve, maintain and increase revenue through customer sales and partnership. https://www.marketingtutor.net/market-evolution/
5 Stages of Market evolution • Emphasis On Producing Goods Production Concept • Producing Quality Goods Product Concept • Aggressive Selling & Promotion Selling Concept • Right products for Customers Marketing Concept Holistic Marketing Concept • Do everything possible
Production Concept Focus Is On Efficient Production And Mass Distribution Product concept is a description of a product or service, at an early stage in the product lifecycle. It takes into consideration market analysis, customer experience, product features, product cost & product architecture. Selling Concept Sell More Stuff To More People And More Often
Marketing Concept Find Right Product For The Customers Focus Is on Creating, Communicating & delivering superior customer value Build Profit Through Customer Satisfaction And Loyalty
Holistic Marketing Concept Acknowledges That Everything Matters In Marketing Relationship Marketing Social Integrated Marketing Responsibility Marketing Components Internal marketing
How Cadbury Captured Indian Market Product improvement Price Adjustment Promotion & Distribution Chan 1948 1965 they cultivated coca in 1964 estd farm in Pune
Industry Forces • The number and power of a company's competitive rivals, potential new market entrants, suppliers, customers, and substitute products influence a company's profitability. • Five Forces analysis can be used to guide business strategy to increase competitive advantage
Pressure that consumers can put on businesses to get them to provide higher quality products, better customer service, and/or lower prices Pressure that suppliers can put on companies by raising their prices, lowering their quality, or reducing the availability of their products. Source : https://blog.alexa.com/industry-analysis/
Product Differentiation Cost of entry Switching cost • • • LOW THREAT https://slideplayer.com/slide/6082617/
Tesla is a vital company in the electric vehicle sector • They have a very solid relationship with their customers • Bargaining power of Buyers LOW THREAT
Tesla Motors is highly dependent on its suppliers They adopting lean management system • • Bargaining power of suppliers HIGH THREAT Suppliers have a higher bargaining power
The threats of substitution are from Hybrid cars, Diesel cars as well as other electric cars Solar power cars. • • • Threat of substitutes HIGH RISK
Environmental forces • Environmental forces are the factors in the business environment that influence its operations. • External environmental factors affecting business can include the economic climate, local politics, Technology, consumer income and the education of the labor force. • Internal environment factors affecting business can include • Plans & Policies. • Value Proposition (promise of value to be delivered) • Human Resource. • Financial and Marketing Resources. • Corporate Image and brand equity. • Plant/Machinery/equipments (or you can say Physical assets) • Labour Management.
Customer Needs and Wants 76% of customers expect companies to understand their needs. Most of the businesses focus on innovations and fail to align their brand with customer needs. Customer-centric companies are 60% more profitable than companies that don’t focus on customers. What are customer needs? Customer needs are defined as the influential factors that trigger them to buy your product or service.
Here are four simple steps to follow in order to meet customer needs successfully. 1. Identify – Follow customer needs analysis via surveys, interviews, focus groups, or social listening. 2. Distribute – Once identified the needs, you can distribute it across the right teams and departments. 3. Create – Create detailed content that speaks about customer needs. 4. Collect – Obtain customer feedback regularly to learn how your efforts meet their expectations. Source : https://www.revechat.com/blog/customer-needs/
Customer Wants 1. A consumer's wants usually reflect the desired preferences for specific ways of satisfying a need. 2. Customers tend to get more value, joy, and satisfaction from purchasing what they want versus what they need. Successful businesspeople understand this and know how to use it to their advantage.
Customer Decision-Making Process Source : https://www.hausmanmarketingletter.com/psychology-customer-decision-making/
1.Need 2.Ask for Friends, Family 3.Comparison, Ranking 4.Final Decision 5.Consider in future
Problem identification/ Need recognition First we should know the need NEED • • Internal trigger & External trigger
Information search Sources Personal Commercial Friends Family Neighbors Advertising Salesman Promotional Videos Social media Search for review • • • • • • • •
