The Indian Marketing Environment

The Indian Marketing Environment

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The Indian Marketing Environment At the end of this module the learning outcomes are 1. What are the various components of the marketing environment? 2. How the Indian marketing environment is changing as times change? 3. How are the new economic policies impacting the marketing environment? 4. What are the marketing challenges in the new environment.
The Indian Marketing Environment 2

Suggested Readings

1. Marketing Management by Philip Kotler, 12th edition Chapter 3

2. Marketing Management by Ramaswamy & Namkumari, Chapter 2 and 3

The Indian Marketing Environment

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Terms and attributes of the offer are acceptable c. The offer fulfils the needs of the consumer. b. a. All the organisational goals including profits are achieved in the process. The Indian Marketing Environment 4 .Marketing Mix We have said Marketing is the delivery of a total offer to the consumer in such a manner that.

Marketing Mix How does a firm make such offer to the consumer. 1. The Indian Marketing Environment 5 . 2. Performs distribution / placement functions like transportation.A product that would meet the identified needs of the chosen consumer group. warehousing channel management etc.

3. Pricing.The pricing mechanism to achieve consummation of the marketing process. The Indian Marketing Environment 6 . Carries out a number of promotion measure like personal selling. sales promotional programmes with a view to communicating with the consumer. advertising. Four elements – Products. 4. Placement and Promotion constitute MARKETING MIX.

presale and aftersale. The Indian Marketing Environment 7 .1. size Packaging Merchandising Service. models. Product • Product mix/lines • • • • Quality.

payment terms. budgets allocations and programmes. The Indian Marketing Environment 8 . 3. level of margins. discounts.2. Location of outlets. level of prices. •Sales promotional efforts. contests •Publicity and Public relations. 4. channel remuneration. quality of sales force •Advertising: Media mix. Promotion •Personal selling. Placements Channels of distribution types of intermediaries. Terms of delivery. Price Policies.

As environmental valuables keep changing alterations in the marketing mix become necessary. 1. Changes taking place within the firm too necessitate changes in the marketing mix.Assembling and managing the marketing mix is the main job in the whole marketing task. 5. The Indian Marketing Environment 9 . Marketing mix has to be juggled constantly in order to meet the changing requirements. Changes in customer preferences necessitate alterations in the mix. 3. 4. 2. Interaction between marketing mix and the environmental variables is the substance of the marketing process.

Environmental The Indian Marketing Environment 10 . it has to reckon with variables that make up the environment. No. Trade 4. Competition 3. These are called environment variables. Customer 2. These are 1.Can a Marketing mix be created in vacuum.

Buying Behaviour • • • Habits Lifestyles Brand awareness and loyalty The Indian Marketing Environment 11 . Customer Variables • • Number and location of customers Purchasing Power.1.

Buyer’s market or seller’s market. Competition Variables • • • • . Strengths and weakness.2. Substitute products The Indian Marketing Environment 12 . Structure of the Industry Nature and intensity of competition.

Trade variables •Types of intermediaries. number. •Extent of sophistication The Indian Marketing Environment 13 . strength •Trade practices •Motives and attitudes of the intermediaries.3.

Environmental Variables •Govt regulation on products. distribution. prices.4. •Economic conditions – Impact of Kargil war •Culture and traditions •Law and politics •Level of technology The Indian Marketing Environment 14 . •Control on trade practices.

Environmental Customer Marketing Product Price Trade Promotion Mix Competition Variables Place The Indian Marketing Environment 15 .

Demographic Scene • • • • • • Close to one billion population Growth rate over 2% per annum Life expectancy from 48 years in 1947 to 70 years in 2001 National literacy rate is over 50% (2001 census) . The Indian Marketing Environment 16 .Indian Marketing Environment a. Diverse religions and languages Dialects in few hundreds.

In 90’s spectacular growth after liberalization One of the fastest growing economies of the The Indian Marketing Environment world 17 . •Agriculture 16% •Industry •Services 24% 60% Slow growth rates till 70’s. Last two decades have seen massive growth in the industry and services sector.5% per annum.b. Economic Scene Top ten economies of the world. Our GDP is growing at 5.a. Average 3% p.

Main cause of development of other sectors. Impressive achievements. Dependence has reduced 2/ rd population dependent directly/indirectly on agriculture.c. Self dependent. The Indian Marketing Environment 18 . 3 Rural markets development at a faster rate. Agricultural Scene Predominance is there. Rare foodgrain imports.

The Indian Marketing Environment 19 . Industrial scene Contribution to GDP growth increasing More than this.d. there are qualitative change Rapid foreign investment and competition from multinational companies.

The Indian Marketing Environment 20 . Target group for most of the companies.e. Social scenario: The middle class explosion Estimate of 25 crores in size Rapid industrial growth seen emergence of professionals in many spheres.

Consumption of non –food items on the increase Joint families giving in.Social scenario: The middle class explosion Emerged as the consumption community of the country. Higher disposable incomes. Demand for lifestyle products is on the rise. The Indian Marketing Environment 21 . Better education. Concept of nuclear families. higher aspirations.

mobile penetration. Earthenware yielded place to a variety of new kitchenware. The Indian Marketing Environment 22 . Rural marketing scenario Shown impressive growth-television.f. Becoming increasingly urbanized.

000 population for increasing television sales. •Huge. •Future growth lies in this market.Rural marketing scenario •Tapping these markets continues to bewilder most companies. untapped market. Videocon tapping all towns upto 50. The Indian Marketing Environment 23 .

: The introduction of Consumer Protection Act and Consumer Courts. Legal scenario Has direct impact on the marketing environment.g. Pace of legal reforms slow.g. Grim scenario The Indian Marketing Environment 24 . E. Organizations exploiting these weaknesses • ITC versus excise department for 800 crores (last ten years) About one lac litigations pending Average time of ten years to resolve litigations.

•Demand for lifestyle products. What do we observe •Indian marketing environment acquiring greater dynamism and robustness •Evolution of Middle class •Growing rural markets •Lifestyles undergoing rapid changes. The Indian Marketing Environment 25 .h.

New Economic policies 1. 2.New Trade Policy • • Freer Trade Linking of imports to exports The Indian Marketing Environment 26 . New Industrial Policy • • • • Delicensing of industries. Fera relaxation MRTP relaxation Curtailment of the role of the public sector.

•Lowering of tariffs •Convertibility of rupee and the new exchange rate system.•Relying more on exchange rates and tariffs. The Indian Marketing Environment 27 . •Open door to foreign investment. •Encouragement to exports. •Integrating the country’s economy with the global economy.

•Insurance sector reforms •Phasing out of subsidies •Dismantling of price controls and introduction of market driven price environment. •Public sector restructure •Privatization of PSUs (Public Sector Units) •New Policy on PSUs •Exit Policy (closing of business) The Indian Marketing Environment 28 . Economic reforms and structural adjustment •Fiscal and monetary reforms •Banking sector reforms •Capital market reforms •Red Carpet to Foreign institutional investors.3.

put up global size plants and pose a threat to existing players. E.. Delicensing implies a degree of destablisation for existing players. Samsung.g. Hyundai The Indian Marketing Environment 29 .Marketing challenges in the liberalised economy 1. Umbrella of protection disppears New entrants can alter economies of scale.

The challenge of MNC Dominance Majority equity lends MNCs a new strategic edge. The Indian Marketing Environment 30 .2.

•Import liberalisation adds to the competition. The Indian Marketing Environment 31 .The fierce competition •Competition from fresh Indian Players •Competition from MNCs •Indian companies are not giving up •BPL leader in televisions •Asian paints in paints. •Competition is now global in character.3. •Access to technology adds to the competition.

IT IS A BUYER’S MARKET The Indian Marketing Environment 32 . •Graduating from shoddy products to products of excellence.4. The demands of a buyer’s market •Graduating from shortages to surplus. •The consumer calls the tune. •The challenge of competitive pricing.

Dr Reddy.5. Infosys • Strong names in the international market. Indian companies are now compelled to export and go global. The Indian Marketing Environment 33 . •Indian companies taking initiative •Going global • Ranbaxy.

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