Indicative Answers to Quiz 1

1. Marketing was defined by AMA in 1985 as the process of planning

and executing the conception, pricing, promotion, and distribution
of ideas, goods, and services to create exchanges that satisfy
individual and organizational objectives. How is the current
definition (AMA 2007) of marketing different from the AMA 1985
definition? List three key changes and the underlying reasons for the
same. (30 marks)
Answer :
AMA 2007- Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large
Key differences:
1. Customer Value Focus: Marketing as - processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large
as compared to the focus on marketing mix elements (or marketing
tactics) in AMA 1985 definition. The previous definition took primarily a
firm perspective and a managerial action perspective compared to the
focus on customer value in the current definition. The focus of marketing
needs to be on customer value and not firm actions; this brings a strategic
focus for marketing than the earlier tactical approach implied in the
definition.
2. Organizational activity not a separate function to be performed:
Marketing as activity for . Marketing is no more a task that could
be performed by a separate group of people in the organization. It is an
activity to be performed by all members of the organization. A customer
oriented culture is a need for organization survival and growth and hence
this change.
3. Institutional view of marketing : Marketing includes a set of
institutions ( social ,cultural, regulatory and market institutions) and is
not just an exchange of offerings between customers and organizations.
Consumption is influences by social cultural and business institutions and
hence the influence of various institutions is explicitly recognised in
defining marketing.
4. Purpose: The purpose of marketing is not only to satisfy individual and
organizational objectives but to offer value to other stakeholders including
society at large. The scope of marketing is broadened to proactively
address concerns of various stakeholders.

2. Distinguish marketing tactics from marketing strategy.(20 marks)

Answer :
Marketing strategy at a product level refers to two decision namely
deciding (i) the target customer segment and (ii) value proposition to the
targeted customers.
Marketing Tactics refers to the actions required to implement the marketing strategy
that is marketing mix. It included product, price , place and promotion decisions.
In Vora & company case, Vora decided on marketing mix elements (tactical
decisions) without having a clear marketing strategy preceded by an in-depth
analysis of the business situation.

3. What are the environmental factors that are affecting businesses and
esp. consumer markets as identified by Harish Manwani in his speech
in 36th HUL AGM in June 2016? What are the implications of these
factors to consumer good business and Unilever/HUL in particular?(30
marks)
Answer :
Three megatrends and their implications are clearly articulated in the
speech
1. Digitisation ( Technology factor)
2. Sustainability ( Social and/or Ecological factor) and
3. Changing world order (Economic factor as well as social factor ).
Economic factor as a result of the growth of these economies. Social factor
too as there is a need to understand local cultures and balance global
capabilities and R&D with local consumer insights. ( Glocal strategies)
Other than these need for Purpose driven and values led leadership is
explained in page 13,14. This could be considered in the legal environment
as good governance and compliance to regulations is not enough for
businesses to build reputation and trust.
The changing world order (rise of developing world as an economic power)
has also political implications. The rising tide of nationalism and a retreat of
globalization as in the case of Brexit referendum- Political factor