CHAPTER 1

What is Marketing Myopia?

Term coined by Professor Theodore Levitt
1.Marketing myopia is a combination of two words, marketing plus myopia. Myopia refers to short
sightedness and the word Marketing myopia refers to the perception of short sightedness in
marketing.

2.Marketing myopia results when an organization focuses more on their product rather than
focusing on what a customer need. The organization forgets the fact that the product in the end is a
means of satisfying the needs of the customer after all.

3.In marketing myopia, the organization tends to deviate from the main goal of the business they are
engaged in that is the focus should not be on the product but the basic human needs the product
satisfies.

4.Over the period of time, a product may become obsolete but the human need never ends. So, a
business should always be customer oriented rather than product oriented.

Strategic Planning vs Tactical Planning

1. Strategic plan involves planning which will cover a period beyond next fiscal year. It usually covers
a planning of 3 to 5 years.
2. Tactical plan is a planning which covers a detailed action plan and by whom it has to be taken. It is
a short-term planning and involves a period less than or equal to a period of 1 year.

Customer relationship management

1. Customer relationship management also known as CRM is a process in which we as a producer try
to improve and maintain our relationships with our current customers or potential customers by
providing the satisfactory goods and services at a lesser cost. For example, Zomato offers its
customers deals and discounts if the customer has not ordered from Zomato for a long period of
time.
2. CRM follows an operating principle that, create a good satisfied customer network and profits will
follow.
3. Companies use techniques such as websites, CRM softwares, Email, Call centres, Social media
tools etc.

Different levels in CRM (Strategies)

● Basic Marketing – Selling
● Reactive Marketing – Selling + Service (Handling Complaint)
● Accountable Marketing – Check the customer satisfaction level and feedback through
phone or survey.
● Proactive Marketing – Inform the customer about your innovative products and services
● Partnership Marketing – Company works continuously with its large customer to help
improve their performance.

Define marketing and outline the steps in marketing process?

Marketing is a process in which companies create value for its customer and build strong customer
relationship by providing goods and services to the customers and capturing value in return.
Marketing process involves 5 steps
1. Understand the market place, customer needs and wants.
2. Design a customer value driven marketing strategy.
3. Construct an integrated marketing program that delivers superior value.
4. Engage customers, build profitable relationship with customers and create customer delight.
In return, the company creates value from customer to generate profits and customer equity.

Explain the importance of understanding marketplace and customers and identify the 5
core marketplace concepts.
1. Large and good companies spend a lot of time and efforts to understand their customer’s needs,
wants and demands. This understanding helps the companies to create want satisfying market
offerings and build value driven customer relationship by which the companies can capture
customer value. This results in long term equity share of the customer.

2. The core marketplace concepts are needs, wants, demands, market offerings (products, services
and experiences), value and satisfaction; exchange and relationships; and markets. The companies
address need, wants and demands of the customers and put forward a value proposition. This value
proposition is fulfilled by market offering which delivers customer value and satisfaction and results
in long term relationships with the customer.

Market offering
Combination of products, services, information or experiences offered in the market to satisfy the
needs and wants of the customer.

Identify the key elements of a customer value driven marketing strategy and discuss the
marketing management orientations that guide marketing strategy.
To design a marketing strategy, it is very important for an organisation to decide whom it will serve.
This is done by dividing the market into segments which is called market segmentation. After market
segmentation, it is very important for a company to decide which segment it will focus on. This is
called Target marketing.
After target marketing, the company must decide how it will serve the target customers. For this,
marketing management can adopt 5 marketing management orientations.
1. Production concept- According to the production concept, the companies focus on improving the
production efficiency to lower down the prices.
2. Product concept- According to this concept, customer favours the product that has good quality,
innovative features and good performance.
3. Selling concept- According to this concept, the consumer will not buy product of an organization
unless it has a large scale selling and promotional effort.
4. Marketing concept- According to this concept, the company focuses on the needs and wants of
the customer to design customer-oriented goods and services, providing market offering and in
return capture customer value.
5. Societal Concept- According to this concept, generating customer satisfaction and long run
societal well-being through sustainable marketing strategies is key to both achieving the company’s
goal and fulfilling its responsibilities.

Describe the major trends and forces that are changing the marketing landscape in this
age of relationships.
Dramatic changes are occurring in the marketing arena. Thedigital age has created exciting new ways
to learn about and relate to individual customers. As a result, advances in digital andsocial media
have taken the marketing world by storm. Online, mobile, and social media marketing offer exciting
new opportunities
to target customers more selectively and engage them more deeply. The key is to blend the new
digital approaches with traditional marketing to create a smoothly integrated marketing strategy and
mix.
The Great Recession caused consumers to rethink their buying priorities and bring their consumption
back in line with their incomes. Even as the post-recession economy has strengthened, Americans
are now showing an enthusiasm for frugality not seen in decades. The challenge is to balance a
brand’s value proposition with current times while also enhancing its long-term equity. In recent
years, marketing has become a major part of the strategies for many not-for-profit organizations,
such as colleges, hospitals, museums, zoos, symphony orchestras, foundations, and even churches.
Also, in an increasingly smaller world, many marketers are now connected globally with their
customers, marketing partners, and competitors. Finally, today’s marketers are also re-examining
their ethical and societal responsibilities. Marketers are being called on to take greater responsibility
for the social and environmental impacts of their actions. Pulling it all together, as discussed
throughout the chapter, the major new developments in marketing can be summed up in a single
concept: engaging customers and creating and capturing customer value. Today, marketers of all
kinds are taking advantage of new opportunities for building value-laden relationships with their
customers, their marketing partners, and the world around them.

Why is marketing as important for not-for-profit organizations as profit-driven ones?

NPO also needs to target market, also needs to promote, create public relations

What is ENVIRONMENTAL SCANNING?

Environment scanning is a process of monitoring all the factors that could affect business and to
assess various opportunities and threats to the business. A business can largely be impacted from
forces including economic, political, legal, social and cultural. Hence, Environmental scanning is a
careful study of these influencing factors.
Factors affecting environmental factors: -
1. Social Environment-
India is a country of diverse religion and holds large population from different sects including Hindu’s
being at the majority, Muslim’s being the largest minority and Sikh, Jain, Buddhist, Christian in
minority as well. One will find great difference not only in different religious groups but also find
people socially different in north from south, west and east and vice versa.
2. Cultural Environment-
Culture is a set of values, ethics and tradition shared by a homogenous group of people in a society
and is passed on to next generation. A culture can be defined in terms of how people adapt their
habitat, its social structure and ideology. For example, north Indians would prefer to wear jeans,
pants, shirts, shorts etc on daily basis whereas if we move towards South, we will find that people
prefer dhotis over all those clothes that north Indians prefer.
3. Economic Environment- Economic factor is one the important factor that is considered while
framing business policies and taking important decision. Economic environment includes nature of
the economy, whether the country is low income, high income or middle-income country, what is
the per capita income of the country, distribution of income and global linkages.
4. Political Legal Environment-
Business is greatly influenced by political and legal environment throughout the globe. Political
environment includes pressure groups, governments, laws etc. Legal environment includes different
laws in a country that will regulate business and individuals working in it. These can influence and
restrict businesses in a society to work. It is very important for a company to have good knowledge
of political and legal environment of a country before entering it. It should know what laws are
needed to obey, what regulations are needed to follow, or what laws may limit business’s ability to
be successful. For example, environment protection laws, product safety regulations etc.

Microenvironment vs. Macroenvironment

Microenvironment- Microenvironment consist of factors that are close to the company and can
affect its ability to engage and serve its customers.
Factors include-
1. Company
2. Suppliers
3. Competitors
4. Intermediaries
Marketing intermediaries help the company promote, sell & distribute its product to final buyers.
The following are the marketing intermediaries:
*Resellers
They are distribution channel firms that help the company find customers or make ales to them.
They include wholesalers & retailers.
*Physical Distribution firms
They help the company stock & move goods from Point-of-Origin to the Point-of-Sale.
*Marketing service agencies
Consist of Marketing Research firms, advertising agencies that help the company in targeting &
marketing the product.
*Financial Intermediaries
Include banks, credit companies, insurance companies that help in financial transactions.
5. Customers
6. Publics
Citizen action groups

Macroenvironment-
PESTEL
1. Political
2. Economic
3. Social
4. Technological
5. Environmental
6. Legal

Describe the environmental forces that affect the company’s ability to serve its
customers.
A company is affected by two environmental forces. First is Microenvironment and second is
Macroenvironment

Identify the major trends in the firm’s natural and technological environments .
The natural environment shows three major trends: shortages of certain raw materials, higher
pollution levels, and more government intervention in natural resource management. Environmental
concerns create marketing opportunities for alert companies. The technological environment
creates both opportunities and challenges. Companies that fail to keep up with technological change
will miss out on new product and marketing opportunities.

Explain the key changes in the political and cultural environments.

The political environment consists of laws, agencies, and groups that influence or limit marketing
actions. The political environment has undergone changes that affect marketing worldwide:
increasing legislation regulating business, strong government agency enforcement, and greater
emphasis on ethics and socially responsible
actions. The cultural environment consists of institutions and forces that affect a society’s values,
perceptions, preferences, and behaviors. The environment shows trends toward new technology
enabled communication, a lessening trust of institutions, increasing patriotism, greater appreciation
for nature, a changing spiritualism,
and the search for more meaningful and enduring values.

Discuss how companies can react to the marketing environment.

Companies can passively accept the marketing environment as an uncontrollable element to which
they must adapt, avoiding threats and taking advantage of opportunities as they arise. Or they can
take a proactive stance, working to change the environment rather than simply reacting to it.
Whenever possible, companies should try to be proactive rather than reactive.

Business Portfolio
It is a combination of product, service and business units that is held by an organization. A portfolio
of a business help companies to take strategic decisions after observing each aspect of the portfolio
is carefully. It also tells which unit needs more attention and which needs comparatively less
attention.
Steps of designing business portfolio.
1. Current portfolio is analysed properly using BCG matrix or growth share matrix
2. Shaping future portfolio using Ansoff’s matrix or product/market expansion matrix
BCG Matrix is a matrix which is plotted between relative market share on bottom side and market
growth on left side of the matrix.
It contains 4 matrixes
1. Star- High growth and high market share
2. Cash Cow- Low growth rate and high market share.
3. Question Mark- High growth rate and low market share.
4. Dogs- Low growth rate and low market share.
Every new product starts as a question mark. It has a tendency to become a star, a cash cow or a
dog.

HIGH STAR QUESTION

Market MARK
Growth CASH COW DOG
LOW

HIGH LOW

RELATIVE MARKET SHARE

Ansoff’s Matrix or product market expansion matrix is plotted using market on the left side and
product on the top side of the matrix.
1. Market Penetration- When an existing product is launched in an existing market, it is called
market penetration. It can also be defined as the product of total users using a particular product
and total usage. Tools like special offers and discounts are used to increase market share.
Existing product and existing market.
2. Market Development- New market and existing product.
It creates growth by introducing existing products into new markets.
3. Product Development- New Product Existing Market
When a new product is introduced in an existing market. Launching new product, Innovation and
new technology and features is an example of product development.
4. Diversification- New Product New Market
When a new product is launched in a new market.

Existing Market Product

Penetration development

MARKET
New Market Diversification
development

Existing New

PRODUCT

Business Strategy/Marketing Plans and Strategies

SWOT Analysis
CONSUMER MARKETS AND CONSUMER BUYING BEHAVIOR
Factors that influence consumers' buying behaviour
Social factors affecting buying pattern
Marketing Segmentation, Targeting and Positioning