Name: Annalise Silveira

Roll No: PC21-39

Subject: Marketing Management

Topic: Indian Marketing Environment

 MEANING OF MARKETING ENVIRONMENT IN
INDIA
• The Marketing Environment Refers To All Internal And External Factors
Which Directly Or Indirectly Influence The Organization’s Decisions
Related To Marketing Activities.

• India Is One Of The Largest Consumer Markets In The World With Its
Population Of Middle-class Consumers Expected To Reach 200 Million
In 2020 And 475 Million In 2030.
• The Indian Socio-economic Environment Is Constantly Evolving And
Changing , Which In Turn Impacts On Consumer Choices. One Should Be
Particularly Mindful Of Factors Including:
1. Brand Awareness: Indian Middle-class Consumers Place Strong
Importance On Brand, Particularly Luxury Brands.
2. Price Consciousness: For Everyday Commodities, Price Is An Important
Consideration For Indian Consumers.
3. Demographic Dynamics: India’s Middle And Upper-middle Income
Households In Large Cities Are Demanding Quality Across A Wide Range
Of Products And Services.
 DEFINITION OF MARKETING ENVIRONMENT

• According To Philip Kotler, Marketing Environment Refers To “External

Factors And Forces That Affect The Company’s Ability To Develop And

Maintain Successful Transactions And Relationships With Companies

Target Customers’’.
 FEATURES OF MARKETING ENVIRONMENT
1.Specific And General Forces:
It Refers To Different Forces That Affect The Marketing Environment. Specific Forces Includes Those Forces,
Which Directly Affect The Activities Of The Organization. General Forces Are Those Forces Which Indirectly
Affect The Organization.

2.Complexity:
The Marketing Environment Is Complex In Nature.

3.Uncertainity:
It Implies That Market Forces Are Unpredictable In Nature. It May Be Difficult To Predict Some Of The
Changes Frequently.

4.Relativity:
It Explains The Reasons For Differences In Demand In Different Countries. The Product Demand Of Any
Particular Industry, Organization, Or Product May Vary Depending Upon The Country, Region, Or Culture.
 TYPES OF MARKETING ENVIRONMENT
THE MARKETING ENVIRONMENT OF A BUSINESS CONSISTS OF AN
INTERNAL AND AN EXTERNAL ENVIRONMENT.

INTERNAL ENVIRONMENT
1. HR
2. FINANCE
3. R &D
4. MANUFACTURING
5. PURCHASING ETC.
 EXTERNAL ENVIRONMENT

The External Environment Is Further Divided Into Two Components: Micro And Macro

1. Micro Environment
 Suppliers
It Provides Raw Material To Produce Goods And Services.

 Marketing Intermediaries
It Helps Organizations In Establishing A Link With Customers. Includes The
Following:
Resellers, Distribution Centres, Marketing Agencies, Financial Intermediaries
 Customers
Customers Buy The Product Of The Organization For Final
Consumption.

Competitors
It Helps An Organization To Differentiate Its Product To Maintain
Position In The Market.
 2. MACRO ENVIRONMENT
Demographic Environment:
Is The Scientific Study Of Human Population In Terms Of Elements Such As
Gender, Education, Occupation, Income, Location.

Economic Environment:
Affects The Organization’s Costs Structure And Customers Purchasing Power.
The Economic Environment Factors Are As Follows:
1. Inflation: It Influences The Customers Demand For Different Products.
2. Interest Rates: It Determines The Borrowing Activities Of The Organization.
3. Customer Income: It Regulates The Buying Behaviour Of A Customer.
 Natural Environment:

Consists Of Natural Resources Which Are Needed As Raw Material To Manufacture

Products By The Organization. The Marketing Activities Affect These Natural
Resources.

Following Natural Factors Affect The Marketing Activities Of An Organization In

A Great Way:

1. Natural Resources: It Serves As A Raw Material For Manufacturing Various

Products.

2. Weather: It Leads To Opportunities Or Threats For The Organizations.

3. Pollution: It Includes Air, Water, And Noise Pollution, Which Leads To

 Socio-cultural Environment
Comprises Forces Such As Society’s Basic Values, Attitudes, Perception
And Behaviour. The Socio-cultural Environment Explains The
Characteristics Of The Society In Which Organization Exist. The
Analysis Of Socio-cultural Environment Helps An Organization In
Identifying The Threats And Opportunities In An Organization.

Technological
Technology Contributes To The Economic Growth Of A Country. It Has
Become An Indispensible Part Of Our Lives. Organizations That Fail To
Track Ongoing Technological Changes Find It Difficult To Survive In
Todays Competitive Environment.
 IMPORTANCE OF MARKETING ENVIRONMENT
1.Identification Of Opportunities:
It Helps An Organization In Exploiting The Changes Or Prospects For Its Own Benefit.

2.Identification Of Threats:
It Gives Warning Signals To Organizations To Take The Required Steps Before It Is Too
Late.

3.Managing Changes:
It Helps In Coping With The Dynamic Marketing Environment.