Tag: Modern Marketing Bangalore University BBA Notes

Marketing myopia suggests that businesses will do better in the long-term if they concentrate on meeting the utility of a product or good, rather than just trying to sell their products.

Marketing myopia is the failure & narrow-minded approach of marketing management of a company; which only focuses on certain attributes of the product or service while completely ignoring the long terms goals such as product quality, customers need, demand and satisfaction.

One reason that short-sightedness is so common is that people feel they cannot accurately predict the future. While this is a legitimate concern, it is also possible to use a whole range of business prediction techniques currently available to estimate future circumstances as best as possible.

There is no such a thing as a growth industry. There are only companies organized and operated to create and capitalize on growth opportunities. There are 4 conditions of the self-deceiving cycle:

• The belief that there is no competitive substitute for the industry’s major product.
• The belief that growth is assured by an expanding and more affluent population.
• Too much faith in mass production and in the advantages of rapidly declining unit costs as output rises.
• Preoccupation with a product that lends itself to carefully controlled scientific experimentation, improvement, and manufacturing cost reduction.

The “New marketing myopia” occurs when marketers fail to see the broader societal context of business decision making, sometimes with disastrous results for their organization and society. It stems from three related phenomena:

(1) A single-minded focus on the customer to the exclusion of other stakeholders.

(2) An overly narrow definition of the customer and his or her needs.

(3) A failure to recognize the changed societal context of business that necessitates addressing multiple stakeholders.

Customers in the “New marketing myopia” remain a central consideration, as in the traditional “Marketing myopia”. However, academics that develop the “new marketing myopia” phenomenon state that it is essential to recognize that other stakeholders also require marketing attention. For business-to-consumer companies, these other stakeholders (e.g., employees) are sometimes customers too, but they need not be (e.g., nontarget market members of the firm’s local community).

Causes of Marketing Myopia

• Failure to Consider Changing Consumer Lifestyle in the Digital Age.
• Concentrating more on products and not on customers.
• Companies suppose there are no competitive substitutes.
• Failing to consider the requirements of the consumer.

Avoiding Marketing Myopia

Over the past half century, marketers have given their advice on how to avoid Marketing Myopia. They primarily focus on the fact that the customer is the most important element in marketing and hence the sole focus should on them. The problem with this approach is that the advice has been taken too seriously thus resulting in a new type of myopia, which may cause deformation in strategic vision and could possibly lead to business failure.

The result of doing so would however lead to other consequences as listed below:

• Narrowly defining the customer’s needs.
• A single-minded focus on the customer could lead to the exclusion of other important people in the organisation like the stakeholders.
• A failure to recognize the changed societal context of business that necessitates addressing multiple stakeholders.

Thus, having an extremely customer scope view is not the solution to this marketing syndrome. The following are the measures which could be adopted to avoid or mitigate the problem:

• Determining stakeholder salience.
• Mapping the company’s stakeholders to show who influences or should influence the company and what issues most concern them.
• Researching the stakeholder issue, their expectations and the measure impact.
• Embedding a stakeholder’s involvement.
• Engage with stakeholders as they are also an integral part of the decision-making process and in most cases fund the particular Programme.

Traditional concept of marketing

According to this concept, marketing consists of those activities which are concerned with the transfer of ownership of goods from producers to consumers. Thus, marketing means selling of goods and services. In other words, it is the process by which goods are made available to ultimate consumers from their place of origin. The traditional concept of marketing corresponds to the general notion of marketing, which means selling goods and services after they have been produced. The emphasis of marketing is on sale of goods and services. Consumer satisfaction is not given adequate emphasis. Viewed in this way, marketing is regarded as production/sales oriented.

Features of Traditional Concept of Marketing

(i) This concept starts with the product or output which is produced in fac­tories.

(ii) It stresses upon the product of the manufacturer.

(iii) This concept focuses on the need and interests of the producer’s.

(iv) The objective of marketing under traditional concept is maximizing profit by maximizing sales.

(v) The means to achieve objective of marketing i.e. profit maximization is achieved through selling and promo­ting the product.

(vi) This concept aims to achieve short term goals.

(vii) Traditional concept includes produ­ction concept, product concept & selling concept.

(viii) The focus of this concept is on produ­ction.

Modern concept of marketing

According to the modern concept, marketing is concerned with creation of customers. Creation of customers means identification of consumer needs and organizing business to satisfy these needs.

Marketing in the modern sense involves decisions regarding the following matters:

• Products to be produced
• Prices to be charged from customers
• Promotional techniques to be adopted to contact and influence existing and potential customers.
• Selection of middlemen to be used to distribute goods & services.

Modern concept of marketing requires all the above decisions to be taken after due consideration of consumer needs and their satisfaction. The business objective of earning profit is sought to be achieved through provision of consumer satisfaction. This concept of marketing is regarded as consumer oriented as the emphasis of business is laid on consumer needs and their satisfaction.

Features of Modern Concept of Marketing

(i) This concept starts with target market selection and finding the needs and wants of the target market so selected.

(ii) It stresses upon the needs and wants of the consumer.

(iii) This concept stress on the need and interest of the consumer.

(iv) The objective of marketing under modern concept is profit, but through consumer satisfaction.

(v) The objective i.e. consumer satisfac­tion is achieved through coordinated marketing techniques.

(vi) This concept aims to achieve long term goals.

(vii) Modern concept includes consumer-oriented philosophy, societal oriented philosophy.

(viii) The focus of this concept is on the consumer satisfaction.

Traditional Marketing	Modern Marketing
In traditional marketing the objective is maximum profit.	In modern marketing the objective is maximum customer satisfaction.
Traditional marketing is short term oriented.	Modern marketing is long term oriented.
Traditional Marketing concepts focuses on products only.	Modern Marketing concepts focuses on customer’s needs and wants.
It targets customer in focus of product/service selling and availing high profit.	It targets customer in focus of providing product/service and availing satisfactory profit.
In traditional marketing concept there is less promotional activities.	In modern marketing concept there is sustained promotional activities.
Traditional marketing is one type of push marketing.	Modern marketing is one type of pull marketing.
It is based on production and selling concept.	It is based on social and selling concept.
It is based on manual and physical marketing concepts.	It includes digital/automated marketing along with traditional marketing methods.
In traditional marketing segments are developed by product portfolio.	In modern marketing segments are developed by differences between customers.
It is stuck in existing market.	It is always in search for potential market.
It has no target set of customers or any regular customer base.	It has target set of customers or a regular customer base.
It ignores the market survey and market competition.	It does the market survey and efforts to know market competition.
Geographical scope of traditional market is local area.	Geographical scope of modern market is global area.
Traditional Marketing concept is a narrow concept.	Whereas modern marketing is a broader concept.

Environment Protection Act, 1986 Act of the Parliament of India. In the wake of the Bhopal gas Tragedy or Bhopal Disaster, the [Government of India] enacted the Environment Protection Act of 1986 under Article 253 of the Constitution. Passed in May 1986, it came into force on 19 November 1986. It has 26 sections and 4 chapters. The purpose of the Act is to implement the decisions of the United Nations Conference on the Human Environment. They relate to the protection and improvement of the human environment and the prevention of hazards to human beings, other living creatures, plants and property. The Act is an “Umbrella” legislation designed to provide a framework for central government coordination of the activities of various central and state authorities established under previous laws, such as the Water Act and the Air Act.

The Environment (Protection) Rules lay down procedures for setting standards of emission or discharge of environmental pollutants.

The objective of Hazardous Waste (Management and Handling) Rules, 1989 is to control the generation, collection, treatment, import, storage, and handling of hazardous waste. The Manufacture, Storage, and Import of Hazardous Rules define the terms used in this context, and sets up an authority to inspect, once a year, the industrial activity connected with hazardous chemicals and isolated storage facilities.

The Manufacture, Use, Import, Export, and Storage of hazardous Micro-organisms/ Genetically Engineered Organisms or Cells Rules,1989 were introduced with a view to protect the environment, nature, and health, in connection with the application of gene technology and micro-organisms.

Drawbacks of the Act

• Complete Centralisation of the Act: A potential drawback of the Act could be its centralization. While such wide powers are provided to the Centre and no powers to the state governments, the former is liable to its arbitrariness and misuse.
• No Public Participation: The Act also says nothing about public participation as regards environmental protection.
• There is a need to involve the citizens in environmental protection to check arbitrariness and raise awareness and empathy towards the environment.
• Incomplete Coverage of Pollutants: The Act does not address modern concept of pollution such as noise, overburdened transport system and radiation waves which are also an important cause for the deteriorating environment.

Food Safety and Standards Authority of India (FSSAI) is a statutory body established under the Ministry of Health & Family Welfare, Government of India. The FSSAI has been established under the Food Safety and Standards Act, 2006, which is a consolidating statute related to food safety and regulation in India. FSSAI is responsible for protecting and promoting public health through the regulation and supervision of food safety.

The FSSAI is headed by a non-executive Chairperson, appointed by the Central Government, either holding or has held the position of not below the rank of Secretary to the Government of India.

The FSSAI has its headquarters at New Delhi. The authority also has 6 regional offices located in Delhi, Guwahati, Mumbai, Kolkata, Cochin, and Chennai. 14 referral laboratories notified by FSSAI, 72 State/UT laboratories located throughout India and 112 laboratories are NABL accredited private laboratories notified by FSSAI.

In 2021, with the aim of benefitting industries involved in manufacturing, handling, packaging and selling of food items, FSSAI decided to grant perpetual licenses to restaurants and food manufacturers on the condition that they file their returns every year.

The following are the statutory powers that the FSS Act, 2006 gives to the Food Safety and Standards Authority of India (FSSAI).

• Framing of regulations to lay down food safety standards.
• Laying down guidelines for accreditation of laboratories for food testing.
• Providing scientific advice and technical support to the Central Government.
• Contributing to the development of international technical standards in food
• Collecting and collating data regarding food consumption, contamination, emerging risks, etc.
• Disseminating information and promoting awareness about food safety and nutrition in India.

Standards

Standards framed by FSSAI are prescribed under Food Safety and Standards (Food Product Standards and Food Additives) Regulation, 2011, Food Safety and Standards (Packaging and Labelling) Regulation, 2011 and Food Safety and Standards (Contaminants, Toxins, and Residues) Regulations, 2011.

The FSSAI has prescribed standards for the following:

• Dairy products and analogues
• Fats, oils and fat emulsions
• Fruits and vegetable products
• Cereal and cereal products
• Meat and meat products
• Fish and fish products
• Sweets & confectionery
• Sweetening agents including honey
• Salt, spices, condiments and related products
• Beverages, (other than dairy and fruits & vegetables based)
• Other food product and ingredients
• Proprietary food
• Irradiation of food
• Fortification of staple foods i.e., vegetable oil, milk, salt, rice and wheat flour/Maida.

The development of standards is a dynamic process based on the latest developments in food science, food consumption pattern, new food products, and additives, changes in the processing technology leading to changed specifications, advancements in food analytical methods, and identification of new risks or other regulatory options.

Formulation of standards of any article of food under the Food Safety and Standards Act 2006, involves several stages. After consideration by the Food Authority, the draft standard is published (Draft notified), for inviting stakeholder comments. Since India is a signatory to the WTO-SPS Committee, Draft Standard is also notified in WTO. Thereafter, taking into account the comments received from the stakeholders, the Standard is finalized and notified in the Gazette of India, and implemented.

Adulteration of food-stuffs was so rampant, widespread and persistent that nothing short of a somewhat drastic remedy in the form of a comprehensive legislation became the need of the hour. To check this kind of anti-social evil a concerted and determined onslaught was launched by the Government by introduction of the Prevention of Food Adulteration Bill in the Parliament to herald an era of much needed hope and relief for the consumers at large.

The need for Central legislation for the whole country in this matter has been felt since 1937 when a Committee appointed by the Central Advisory Board of Health recommended this step. ‘Adulteration of food-stuffs and other goods’ is now included in the Concurrent List (III) in the Constitution of India. It has, therefore, become possible for the Central Government to enact an all India legislation on this subject. The Bill replaces all local food adulteration laws where they exist and also applies to those States where there are no local laws on the subject. Among others, it provides for:

(i) A Central Food Laboratory to which food samples can be referred to for final opinion in disputed cases (clause 4),

(ii) A Central Committee for Food Standards consisting of representatives of Central and State Governments to advise on matters arising from the administration of the Act (clause 3), and

(iii) the vesting in the Central Government of the rule-making power regarding standards of quality for the articles of food and certain other matters (clause 22).

ACT 37 OF 1954

    The Prevention of Food Adulteration Bill was passed by both the house of Parliament and received the assent of the President on 29th September, 1954. It came into force on Ist June, 1955 as THE PREVENTION OF FOOD ADULTERATION ACT, 1954 (37 of 1954).

List of Adaptation Order and Amending Act

1. The Adaptation of Laws (No.3) Order, 1956.
2. The Prevention of Food Adulteration (Amendment) Act, 1964 (49 of 1964).
3. The Prevention of Food Adulteration (Amendment) Act, 1971 (41 of 1971).
4. The Prevention of Food Adulteration (Amendment) Act, 1976 (34 of 1976).
5. The Prevention of Food Adulteration (Amendment) Act, 1986 (70 of 1986).

Short title, extent and commencement:

(1) This Act may be called the Prevention of Food Adulteration Act, 1954.

(2) It extends to the whole of India.

(3) It shall come into force on such date2 as the Central Government may, by notification in the Official Gazette, appoint.

2. Definitions:

In this Act unless the context otherwise requires:

(i) “Adulterant” means any material which is or could be employed for the purposes of adulteration;

(ia) “Adulterated” an article of food shall be deemed to be adulterated:

(a) if the article sold by a vendor is not of the nature, substance or quality demanded by the purchaser and is to his prejudice, or is not of the nature, substance or quality which it purports or is represented to be;

(b) if the article contains any other substance which affects, or if the article is so processed as to affect, injuriously the nature, substance or quality thereof;

(c) if any inferior or cheaper substance has been substituted wholly or in part for the article so as to affect injuriously the nature, substance or quality thereof;

(d) if any constituent of the article has been wholly or in part abstracted so as to affect injuriously the nature, substance or quality thereof;

(e) if the article had been prepared, packed or kept under insanitary conditions whereby it has become contaminated or injurious to health;

(f) if the article consists wholly or in part of any filthy, putrid, , rotten, decomposed or diseased animal or vegetable substance or is insect-infested or is otherwise unfit for human consumption;

(g) if the article is obtained from a diseased animal;

(h) if the article contains any poisonous or other ingredient which renders it injurious to health;

(i) if the container of the article is composed, whether wholly or in part, of any poisonous or deleterious substance which renders its contents injurious to health;

(j) if any colouring matter other than that prescribed in respect thereof is present in the article, or if the amounts of the prescribed colouring matter which is present in the article are not within the prescribed limits of variability;

(k) if the article contains any prohibited preservative or permitted preservative in excess of the prescribed limits;

(l) if the quality or purity of the article falls below the prescribed standard or its constituents are present in quantities not within the prescribed limits of variability, but which renders it injurious to health;

(m) if the quality or purity of the article falls below the prescribed standard or its constituents are present in quantities not within the prescribed limits of variability but which does not render it injurious to health:

      Provided that, where the quality or purity of the article, being primary food, has fallen below the prescribed standards or its constituents are present in quantities not within the prescribed limits of variability in either case, solely due to natural causes and beyond the control of human agency, then, such article shall not be deemed to be adulterated within the meaning of this sub-clause.

Explanation: Where two or more articles of primary food are mixed together and the resultant article of food:

(a) is stored, sold or distributed under a name which denotes the ingredients thereof; and

(b) is not injurious to health, then, such resultant article shall not be deemed to be adulterated within the meaning of this clause;

(ii) “Central Food Laboratory” means any laboratory or institute established or specified under section 4;

(iii) “Committee” means the Central Committee for Food Standards constituted under section 3;

(iv) “Director of the Central Food Laboratory” means the person appointed by the Central Government by notification in the Official Gazette as the Director of the Central Food Laboratory and includes any person appointed by the Central Government in like manner to perform all or any of the functions of the Director under this Act:

       Provided that no person who has any financial interest in the manufacture, import or sale of any article of food shall be appointed to be a Director under this clause;

(v) “Food” means any article used as food or drink for human consumption other than drugs and water and includes:

(a) any article which ordinarily enters into, or is used in the composition or preparation of, human food,

(b) any flavouring matter or condiments, and

(c) any other article which the Central Government may, having regard to its use, nature, substance or quality, declare, by notification in the Official Gazette, as food for the purposes of this Act;

(vi) “Food (Health) Authority” means the Director of Medical and Health Services or the Chief Officer in-charge of Health administration in a State, by whatever designation he is known, and includes any officer empowered by the Central Government or the State Government, by notification in the Official Gazette, to exercise the powers and perform the duties of the Food (Health) Authority under this Act with respect to such local area as may be specified in the notification;

(vii) “Local area” means any area, whether urban or rural, declared by the Central Government or the State Government by notification in the Official Gazette, to be a local area for the purposes of this Act;

 (viii) “Local authority” means in the case of:

(1) a local area which is:

    (a) a municipality, the municipal board or municipal corporation;

    (b) a cantonment, the cantonment authority;

    (c) a notified area, the notified area committee;

(2) any other local area, such authority as may be prescribed by the Central Government or the State Government under this Act;

(viiia) “Local (Health) Authority“, in relation to a local area, means the officer appointed by the Central Government or the State Government, by notification in the Official Gazette, to be in-charge of Health administration in such area with such designation as may be specified therein:

(viiib) “Manufacture” includes any process incidental or ancillary to the manufacture of an article of food;

(ix) “Misbranded” an article of food shall be deemed to be misbranded:

     (a) if it is an imitation of, or is a substitute for, or resembles in a manner likely to deceive, another article of food under the name of which it is sold, and is not plainly and conspicuously labelled so as to indicate its true character;

     (b) if it is falsely stated to be the product of any place or country;

     (c) if it is sold by a name which belongs to another article of food;

     (d) if it is so coloured, flavoured or coated, powdered or polished that the fact that the article is damaged is concealed or if the article is made to appear better or of greater value than it really is;

    (e) if false claims are made for it upon the label or otherwise;

    (f) if, when sold in packages which have been sealed or prepared by or at the instance of the manufacturer or producer and which bear his name and address, the contents of each package are not conspicuously and correctly stated on the outside thereof within the limits of variability prescribed under this Act;

   (g) if the package containing it, or the label on the package bears any statement, design or device regarding the ingredients or the substances contained therein, which is false or misleading in any material particular; or if the package is otherwise deceptive with respect to its contents;

   (h) if the package containing it or the label on the package bears the name of a fictitious individual or company as the manufacturer or producer of the article;

   (i) if it purports to be, or is represented as being, for special dietary uses, unless its label bears such information as may be prescribed concerning its vitamin, mineral, or other dietary properties in order sufficiently to inform its purchaser as to its value for such uses;

  (j) if it contains any artificial flavouring, artificial colouring or chemical preservative, without a declaratory label stating that fact, or in contravention of the requirements of this Act or rules made thereunder;

  (k) if it is not labelled in accordance with the requirements of this Act or rules made thereunder;

(x) “Package” means a box, bottle, casket, tin, barrel, case, receptacle, sack, bag, wrapper or other thing in which an article of food is placed or packed;

(xi) “Premises” include any shop, stall, or place where any article of food is sold or manufactured or stored for sale;

(xii) “Prescribed” means prescribed by rules made under this Act;

(xiia) “Primary food” means any article of food, being a produce of agriculture or horticulture in its natural form;

(xiii) “Sale” with its grammatical variations and cognate expressions, means the sale of any article of food, whether for cash or on credit or by way of exchange and whether by wholesale or retail, for human consumption or use, or for analysis, and includes an agreement for sale, an offer for sale, the exposing for sale or having in possession for sale of any such article, and includes also an attempt to sell any such article;

(xiv) “sample” means a sample of any article of food taken under the provisions of this Act or of any rules made thereunder;

(xv) the word “unwholesome” and “noxious” when used in relation to an article of food mean respectively that the article is harmful to health or repugnant to human use.

The target marketing process provides the foundation for selecting the target market a chosen segment of the market that an organization wishes to serve. It consists of the 3-step process of:

Market Segmentation

The first step is market segmentation, which involves dividing a market into a distinct group of buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes.

Market Targeting

The second step is market targeting. Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Marketing Positioning

The third step is market positioning. Marketing positioning involves arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers, which is accomplished through formulating competitive positioning for a product and a detailed marketing mix.

Steps

1. Identify Your Customer Base

The first step in defining your target market is to understand what interests your current customers and identify why they continue to support your company. As you review the numbers, you must be sure to pay attention to what type of customers generate the most business and what products and services they gravitate towards. This will help you understand how to better cater to your current customers as well as how to reach out to others like them.

2. Know Your Competition

You must take the time to thoroughly analyze your competition. While it may be distracting to spend too much time focusing on the competitors, it is important to know who else is competing for your business. Which companies are stealing customers away from you and why? Asking and answering this and similar questions will help you pinpoint where and how you should be reaching out to your audience.

3. Review Products and Services

As you look for ways to reach your target audience, it is incredibly important to review your business’ products and services. In order to understand how to entice new customers, it is imperative that you know all the ins and outs of the services that you are offering. That means knowing what you’re selling as well as knowing what the customer expects to receive. Similarly, you must understand what occurs in the aftermath of a customer’s purchase from your company.

4. Identify the Demographics of Potential Customers

This step in your marketing process requires you to reach out to your community and new customers. By thinking about varying factors like location, gender, education level, income level, age, marital status, ethnic background, and the like, you will be able to better identify the types of customers that may be more inclined to do business with your company.

5. Target Potential Demographics

In order to understand which demographics are more likely to turn to your company, we should use polls, trials, samples, and other methods of market research. This will help you effectively determine whether or not your company is the best match for your chosen demographic,

6. Analyze the Psychographics

The psychographics of a potential consumer includes the values, attitudes, personalities, hobbies, interests, behavior, and lifestyle of the person. This will allow you to determine when and how a potential customer uses your service or product, as well as which method of marketing is most effective on a person-by-person basis.

7. Make a Decision

All of the research in the world will be of no help if you can’t figure out how to use it. The last step in finding your target audience is making a decision on who you will reach out to. With the best data and analyses, you will be able to comfortably choose the correct demographic to market to.

As you work on making a decision you must be sure that your audience can afford your company’s products and services. Additionally, you must determine if there is a need for your company among the chosen demographic as well as enough diversity among your products and services that the target audience doesn’t lose interest.