MM SESSION-4, 5 & 6. TATA ACE CASE Assessing the Need Assessing the Need Choosing the Value Choosing...
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Transcript of MM SESSION-4, 5 & 6. TATA ACE CASE Assessing the Need Assessing the Need Choosing the Value Choosing...
MM SESSION-4, 5 & 6
TATA ACE CASE
• Assessing the Need
• Choosing the Value
• Creating and Designing the Value
• Communicating the Value
• Delivering the Value
• Sustaining the Value
DISCUSS
1. Is Tata Motors a Marketing Oriented company?
2. How did Environmental factors (Macro & Micro) affect the company’s business negatively and positively
3. Opportunity & Threat Analysis: which opportunity should be exploitedand in what order?
4. Strength & Weakness Analysis: identify and order the same
5. What Consumer Behavior nuances are evident in this case or howunderstanding of CB has contributed to success of Tata ACE?
6. Which of the Marketing-Mix elements have been most importantcontributor to success of Tata ACE – in order of importance?
7. Discuss the Segmentation process of Tata ACE?
8. How did the New Product idea for Tata ACE got conceived and taken forward toa successful launch?
9. Why did Tata ACE became a big success whereas Tata Nano failed to takeoff?
Think further to develop perspectives
ANALYSING THEMARKETING ENVIRONMENT
Marketing Environment
MICRO ENVIRONMENT MACRO ENVIRONMENT
Suppliers
Company
Marketing Intermediaries
Customers
Competitors
Public
Economic
Politic
al Social
Techn
olo
gical
Legal
En
viro
nm
enta
l
CoreMarketing
System
Marketing EnvironmentMICRO ENVIRONMENT
Suppliers
Supplies Resources (Inputs)(RM, PM, Labour, Fuel,Electricity, Advertising, Training,Market Research)
Company
Top ManagementMarketing & SalesFinanceR&DLegalPurchasingManufacturingDistribution
Marketing Intermediaries
Middle MenPhysical Distribution FirmsMarketing Services AgenciesFinancial Services
Customers
Consumer MarketsIndustrial MarketsResellers MarketsGovernment & Non-profit MarketsInternational Markets
Marketing EnvironmentMICRO ENVIRONMENT
Competitors
Industry Competition(Eating, Cinema, Exercise)
Generic Competition(Chocolates, Chips, Drinks)
Form Competition(Aerated, Fruit juice, Beverages)
Brand Competition(Coke, Pepsi, Thumbs Up)
Public
Financial PublicsMedia PublicsGovernment PublicsActivist PublicsGeneral PublicInternal Public
Marketing EnvironmentMACRO ENVIRONMENT
Forces and megatrends that shape opportunities and pose threats to the company…and will influence and determine the Company Strategies
Political
Laws, Legislation & RegulationProtect CompaniesProtect ConsumersProtect the interest of SocietiesEnforcement AgenciesPublic Interest GroupsTrade, Tariff and Quotas
What goods and services to provideWhat extent to subsidize industry
Economic
Changes in Income / Disposable IncomeChanging consumer spending patternRate of Saving and Spending Interest RatesTaxationEconomic GrowthInflationExchange Rate
Marketing EnvironmentMACRO ENVIRONMENT
Social
Cultural Values of Society(People’s views of;Themselves, Others,Organisation, Society,Nature)LifestylesAttitudesTraditionBeliefsTastesBehaviour Ethnic GroupsDemographics
Technological
Rapidly changing technologyUnlimited innovational opportunitiesHigh R&D spendIncremental v/s radical improvementsTechnology regulation
Can impact (Threats as well as Opportunities):
Products & ServicesBusiness ProcessesRaw materials
Forces and megatrends that shape opportunities and pose threats to the company…and will influence and determine the Company Strategies
Marketing EnvironmentMACRO ENVIRONMENT
Legal
Consumer LawCompetition LawEmployment LawHealth and Safety LegislationPatent protection
Environmental
Natural ForcesShortage of Raw MaterialIncreased cost of EnergyIncreased levels of PollutionGreen PeaceRole of Govt. in Environment Protection
Forces and megatrends that shape opportunities and pose threats to the company…and will influence and determine the Company Strategies
Overview of the Marketing System
MacroEnvironment
CompanyMktg. Strategy
CompetitorMktg. Startegy
Product
Price
Place
Promotion
BuyerBehavior
IndustrySales
MarketShare
Comp.Sales
Comp.Profits
Comp.Costs
BUILDING THEMARKETING INFORMATION SYSTEM
Three Reasons
From Local to National to Global Marketing
From Buyer Needs to Buyer Wants
From Price to Non-price Competition
“Marketing Information System (MIS) consists of People, Equipment and Procedures to Gather, Sort, Analyze, Evaluate and Distribute Needed, Timely and Accurate Information to Marketing
Decision Makers”
MIS Definition
MIS System
MarketingManagers
MarketingEnvironment
Analysis
Planning
Implementation
Control
TargetMarkets
MarketingChannels
Competitors
Public
MacroEnvironment
AssessingInformation
Needs
DistributingInformation
InternalRecords
MarketingDecisionSupportSystem
MarketingIntelligence
MarketingResearch
M A R K E T I N G I N F O R M A T I O N S Y S T E M
Developing Information
Marketing Decisions and Communications
Internal Records (Results Data)
Order-Billing-Despatch System
Sales Force Automation System
Marketing Intelligence (Happenings Data)
General Exposure or Undirected Viewing
Directed Exposure or Conditioned Viewing
Informal Search or Unstructured Effort
Formal Search or Structured Effort
Marketing Research (Focused Studies)
Marketing Decision Support System (Tools for Data Analysis)
Defining the Problem and
Research Objectives
Developing the
Research Plan
Collecting the
Information
Analyzing the
Information
Presenting the
Findings
Marketing Data
MarketingEvaluations
and Decisions
Statistical Bank Model Bank
Regression AnalysisCorrelation AnalysisFactor AnalysisDiscriminant AnalysisCluster AnalysisConjoint Analysis
Product Design ModelPricing ModelMedia-Mix ModelAdvtg. Budget Model
Marketing Decision Support System
CONSUMER BEHAVIORIN CONSUMER MARKET
Who constitutes the market? : OCCUPANTS
What does the market buy? : OBJECTS
Why does the market buy? : OBJECTIVES
Who participates in the buying? : ORGANISATIONS
How does the market buy? : OPERATIONS
When does the market buy? : OCCASIONS
Where does the market buy? : OUTLETS
The most important questions about any market: SEVEN O’s (7Os)
The STIMULUS-RESPONSE Model
STIMULI RESPONSE
Buyer’s Black Box
Marketing Environmental
4Ps PESTLE
Buyer Buyer DecisionCharacteristics Process
Cultural Problem Recognition
Social Information Search
Personal Evaluation of Alternatives
Psychological Purchase Decision
Post-Purchase Behavior
Buyer’s PurchaseDecisions
Product ChoiceBrand ChoiceDealer Choice
Purchase TimingPurchase Qty / Val
Buyer Characteristics
Culture
Subculture
Social Class
CULTURAL
ReferenceGroups
Family
Roles &Status
SOCIAL
Age & Life-Cycle Stage
Occupation
EconomicCircumstances
Life Style
Personality
PERSONAL
Motivation
Perception
Learning
Memory
PSYCHOLOGICAL
BU
YE
R
Cultural Factors
Culture: is the most fundamental determinant of a person’s wants and behavior
Subculture: more specific identification of behaviorNationality, Religion, Racial and Geographic
Social Class: homogenous, hierarchically ordered and share similar values, interestsand behaviorUpper, Middle, Working, Lower
Social Factors
Reference Groups: a group that has a direct or indirect influence on a person’s behaviorPrimary, Secondary, Aspirational (Opinion Leaders)
Family: most influential primary reference group shaping a buyer’s behaviorHusband, Wife, Children
Roles & Status: activities a person is expected to perform according to the personsaround him/her
Personal Factors
Age & Life-Cycle Stage: bachelor, newly married, middle age, retired, teenager, infant
Occupation: blue collar, white collar, doctor, engineer
Economic Circumstances: spendable income, borrowing power, attitude towardsSpending v/s saving
Lifestyle: pattern of living as expressed in the person’s activities, interests and opinions
Personality: a person’s distinguishing psychological characteristics
Psychological Factors
Motivation: Biogenic & PsychogenicA need becomes a motive when it is aroused to a sufficient level of intensity ORA motive (or Drive) is a need that is sufficiently pressing to drive the person to act.Satisfying the need relieves the felt tension.
Freud’s Theory of Motivation: The real psychological forces shaping people’s behaviorare largely unconscious.
Herzberg’s Theory of Motivation: Dissatisfiers & Satisfiers
Self-Actualization Need
(Self development & Realization)
Esteem Needs(Self-esteem, Recognition, Status)
Social Needs(Sense of belonging, Love)
Safety Needs(Security, Protection)
Physiological Needs(Hunger, Thirst)
Maslow's Theory of Motivation
Psychological Factors
Psychological Factors
PerceptionThe process by which an individual selects, organizes and interprets information tocreate a meaningful picture of the situation.(Sight, Hearing, Smell, Touch and Taste)
Three Perceptual Process
1. Selective Attention: Which stimuli people will note?(Marketers have to work hard to attract consumer attention)• Notice stimuli that relate to current need• Notice stimuli that they anticipate• Notice stimuli whose deviations are large from the normal
2. Selective Distortion: Tendency of people to twist information into personal meanings(Marketers have to work hard to create the right perception about their products & services)People interpret information in a way that will support rather than challenge their preconception
3. Selective Retention: People forget more and retain only information that support their beliefs(Marketers have to work hard to remain in their customers mind)Retain good points about their choice and forget good points about other alternatives
A motivated person is ready to act …
Learning
Learning describes changes in an individual’s behaviour arising from experience.(Interplay of Drives, Stimuli, Cues, Responses and Reinforcement)
Generalisation V/s Discrimination
Memory
STM: Temporary and limited repository of informationLTM: Permanent and essentially unlimited repository of information
Associative Network Memory Model : LTM as a set of Nodes (stored infos) & Links(connectors)“Marketers have to create Brand Associations”
(a) Memory encoding: How and where information gets into memory. The strength of resulting association depends on how much we think about it.
(a) Memory retrieval: the way information gets out of memory
1. Presence of other products produce interference to confuse new data2. Time between exposure to information and encoding produce only gradual decay3. Information is available in memory but not accessible for recall… cues can help!
The Buying Decision Process
ProblemRecognition
InformationSearch
Evaluation ofAlternatives
PurchaseDecision
Post PurchaseBehaviour
NeedInternalorExternal
• Heightened Attention• Active Information
PersonalCommercialPublicExperiential
Consumerformingjudgments
• Satisfy a need• Looks for benefits• Ability of attributesto deliver the benefits
Expectancy-Value-Modelis based on Beliefs & Attitude
What, Where, How much, When and Howto buy?
Positive attribute doesn’t negate negative attributesUses Rule of Thumb (Heuristics)
SatisfactionActionUse & Disposal
Merci