Module-1-Introduction-to-Marketing-Management.pptx

**Elements of Business Environment**
**Unit III – Socio-Cultural Environment**

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### **Introduction**

The socio-cultural environment represents one of the most influential dimensions of the business environment. It encompasses the values, customs, traditions, beliefs, lifestyles, attitudes, and social institutions that shape the behavior of individuals and groups in society. Every business operates within this cultural and social framework, drawing resources from society and returning goods, services, and employment in exchange. Understanding the socio-cultural environment is therefore essential for organizations that aspire to achieve not only profitability but also legitimacy and sustainability in the long run.

In a globalized economy, businesses increasingly interact with societies of varied cultural backgrounds. Consequently, knowledge of social norms, communication styles, and value systems becomes indispensable for management decision-making, marketing, human resource policies, and corporate social responsibility (CSR).

This unit explores five major components of the socio-cultural environment—**business and society, business and culture, language and organizational behaviour, other social and cultural factors, and the social responsibility of business.**

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## **1. Business and Society**

### **1.1 Interdependence between Business and Society**

Business and society share a symbiotic relationship. While businesses depend on society for inputs such as labour, natural resources, and customers, society relies on businesses for goods, services, employment, and infrastructure. A disruption in either side of this relationship affects the other. For instance, when societal expectations shift toward sustainability, businesses must adapt their processes to remain accepted and competitive.

### **1.2 Expectations of Accountability**

Modern societies expect corporations to be accountable for their actions. Profit is no longer the sole indicator of success; ethical behaviour, environmental care, and community contribution also determine a company’s reputation. Consumers increasingly reward responsible brands through loyalty and advocacy, while unethical behavior often invites regulatory scrutiny and public backlash.

### **1.3 Integration of Values**

Societal values such as fairness, equality, transparency, and inclusivity must be embedded in business strategies. The integration of such values builds long-term credibility and minimizes conflict between corporate goals and public interest.

### **1.4 Case Example: The Tata Group**

The Tata Group stands as a benchmark of responsible business conduct in India. From its inception, the group has focused on balancing profit with social welfare. Through initiatives in rural education, healthcare, and sustainable farming, Tata has shown how economic performance and societal welfare can co-exist. During the COVID-19 pandemic, the company contributed over ₹1,500 crores toward national relief effort

1. Module 1: Introduction to Marketing Management

2. Concept, Nature, Scope and Importance of Marketing Concept of Marketing Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value. Nature of Marketing Customer-oriented Dynamic and evolving Goal-oriented (profit & satisfaction) Continuous process Scope of Marketing Goods marketing Services marketing Ideas, experiences, places, persons Domestic & international markets Importance of Marketing Creates utility (form, place, time, possession) Generates employment & economic growth Facilitates customer satisfaction & loyalty Helps in innovation and competition

3. Marketing Concept and Its Evolution 01 Production Concept Focus on mass production & low cost (1900s). 02 Product Concept Focus on quality & innovation. 03 Selling Concept Aggressive sales promotion (1930s–1950s). 04 Marketing Concept Customer-centric approach (1950s–1980s). 05 Societal Marketing Concept Balancing profits, consumer needs & social welfare. 06 Holistic Marketing Concept Integrated approach (relationship, internal, performance, societal marketing).

4. Marketing Mix (4Ps / 7Ps) The 4 Ps Product – Features, quality, design, branding. Price – Pricing strategies, discounts, terms. Place (Distribution) – Channels, logistics, retailing. Promotion – Advertising, sales promotion, PR, digital marketing. Extended 7Ps (for services) People Process Physical Evidence

5. Marketing Environment Micro Environment (direct impact on company decisions): Company Suppliers Intermediaries Customers Competitors Publics Macro Environment (indirect, external factors): Demographic Economic Natural Technological Political-legal Socio-cultural Impact on Decisions Influences pricing, product strategy, promotional tools, market entry.

6. Market Segmentation and Positioning Segmentation Dividing market into homogeneous groups. Geographic Demographic Psychographic Behavioral Targeting Selecting profitable segments. Positioning Creating distinct image of brand in minds of consumers. USP Differentiation Perceptual mapping

7. Product Decision Product Life Cycle (PLC) Introduction → Growth → Maturity → Decline. Marketing strategies vary in each stage. New Product Development (NPD) Stages Idea generation Screening Concept development Business analysis Product development Test marketing Commercialization Consumer Adoption Process Awareness Interest Evaluation Trial Adoption Adopter categories: Innovators, Early adopters, Early majority, Late majority, Laggards.

8. Packaging and Labelling Packaging Functions: Protection, convenience, communication, differentiation. Types: Primary, Secondary, Tertiary. Labelling Functions: Informative (ingredients, usage), Legal (compliance), Promotional (branding). Types: Brand label, Descriptive label, Grade label.