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A STUDY OF I.M.

WITH REFERENCE TO THREE SECTOR IT


INDUSTRY, INDIAN AVIATION, & HEALTHCARE MANAGEMENT.
CHAPTER-1
1.1 INTRODUCTION
Marketing
Process of planning and executing the conception pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy
individual and organization goals.
International Marketing: A efinition
International Marketing can be defined as exchange of goods and services
bet!een different national markets involving buyers and sellers.
According to the American Marketing Association, "International Marketing is
the multi#national process of planning and executing the conception, prices,
promotion and distribution of ideal goods and services to create exchanges that
satisfy the individual and organizational ob$ectives.%
"International marketing is defined as the performance of business activities
designed to plan, price, promote, and direct the flo! of a company&s goods and
services to consumers or users in more than one nation for a profit.%
Marketing concepts, processes, and principles are universally applicable all
over the !orld.
1.2 CONCEPTS OF INTERNATIONAL MARKETING
'. Fore!" M#r$e%"!& It refers to domestic marketing !ithin the foreign
country.
(. Co'(#r#%)e M#r$e%"!& !hen t!o or more marketing systems are
studied, the sub$ect of study is kno!n as comparative marketing. In such a
study, both similarities and dis#similarities are identified. It involves an
analytical comparison of marketing methods practiced in different
countries.
). I"%er"#%o"#* M#r$e%"!& It is concerned !ith the micro aspects of a
market and takes the company as a unit of analysis. *he purpose is to find
out as to !hy and ho! a product succeeds or fails in a foreign country and
ho! marketing efforts influence the results of international marketing.
+. I"%er"#%o"#* Tr#+e& International *rade is concerned !ith flo! of goods
and services bet!een the countries. *he purpose is to study ho! monetary
and commercial conditions influence balance of payments and resource
transfer of countries involved. It provides a macro vie! of the market,
national and international.
,. Do'e,%- M#r$e%"!& omestic Marketing is concerned !ith marketing
practices !ithin the marketer&s home country.
-. G*o.#* M#r$e%"!& .lobal Marketing consider the !orld as a !hole as the
theater of operation. *he purpose of global marketing is to learn to
recognize the extent to !hich marketing plans and programmes can be
extended !orld !ide and the extent to !hich they must be adopted.
1./ NEED FOR INTERNATIONAL MARKETIN
'. I"%er"#%o"#* "%er+e(e"+e"-e o0 -o1"%re, #"+ !ro2"! 2or*+
(o(1*#%o"&
/elf#sufficiency in all respects is not attained by any country in the !orld.
ue to geographical and other factors, no country can produce all its
re0uirements. *here is international interdependence due to !hich every
country has to import certain goods and export goods, in order to pay for
imports. *he a!areness of mutual dependence favors the gro!th of
international marketing.
(. No 1"0or' !eo!r#(3- #"+ -*'#%- -o"+%o",&
There is any uniformity of geographic and climatic conditions in all
countries. A country does not have the capacity to produce all the goods
re0uired by it. ue to natural and other economic factors, a country can
import the goods, !hich it is not in a position to produce.
). No 1"0or' (ro+1-%o" -o,%&
International marketing is needed because the production cost in all
countries is not the same. 1very country can produce certain commodities
!ith lo! production cost because of some favorable factors. 1xchange of
goods on the basis of comparative cost is beneficial to all countries.
+. I"-re#,"! "ee+, #"+ .e%%er ,%#"+#r+ o0 *)"!&
International marketing is needed to fulfill the increasing needs of
consumers for production and improved products and for providing good
standard of living to the people.
,. Nee+ o0 +e)e*o("!& 2loser economic and cultural cooperation
international marketing is needed for developing closer economic and
cultural co#operation bet!een different countries. *hus, the global
resources can be used fully at the global level. International marketing is
re0uired for economic integration among the countries of the !orld.
-. Pro.*e' o0 ,1r(*1, (ro+1-%o" #"+ ,-#r-e (ro+1-%o" " ,o'e
-o1"%re,&International marketing is needed because of surplus production
in some countries and scarce production in some other countries. /ome
countries have huge unutilized production capacity. /ome countries have
no capacity to fulfill even their domestic re0uirements. *his problem can
be solved by international marketing !hich helps in exchange of goods
according to the re0uirements of different countries.
3. 4r+!"! !#( .e%2ee" +e)e*o(e+ #"+ +e)e*o("! "#%o",&
International marketing is needed to bridge the gap bet!een developed and
developing nations. International marketing helps in exchange of goods
and services and helps in transfer of technical kno!#ho! and skills,
thereby accelerating the development of developing countries.
4. E-o"o'- !ro2%3 o0 +e)e*o("! -o1"%re, #"+ (e#-e " %3e 2or*+&
International marketing is needed for 0uick economic gro!th of developed
and developing countries. It helps in transfer of technology and 0uick
industrial development in developing countries. *he developed countries
provide help to developing countries. International marketing develops co#
operation among countries and thereby !orld peace and prosperity.
CHAPTER 2
2.1 INTRODUCTION TO AVIATION INDUSTRY
5ne of the fastest gro!ing sectors globally.It facilitates economic gro!th,
!orld trade, international investment and tourism and is therefore central to the
globalization taking place in many other industries.

Or!" o0 I"+#" -)* #)#%o" "+1,%r5-1612
*he first Indian airline#'6)( Market /ize.
India7s domestic aviation market has tripled in the past five years.
India is currently the ninth largest aviation market in the !orld.
Passengers carried by domestic airlines during 8anuary # May (9'' !ere
(+., million as against (' million.
omestic traffic in a month has registered ,., million passengers carried
!ith three airlines viz. 8et Air!ays, :ingfisher Airlines and Indi.o
carrying more than ' million passengers each in May (9''.
Private carriers are anticipated to post a combined profit of ;/< ),9 =+99
million for the fiscal (9''#'(.
P#,,e"!er #r*"e&
*oday, only t!o per cent of India has access to airline transport.
In India, the number of air tickets purchased annually is ,9 million.
Co'(#re %3, 2%3 o%3er -o1"%re,&
In America, there are 399 million tickets purchased every year.
In Ireland, the tickets sold are (, million.
In Malaysia, the tickets sold are '- million.
C#r!o *o!,%-,
2hina today has '99 cargo aircrafts.
In the ;/, >edex and ;P/ have ', 399 aircrafts but India has only '-.
He*-o(%er, #"+ (er,o"#* 7e%,
*here !ill be an explosion of gro!th.
*his is because the number of rich people in India is gro!ing.
Many of India7s very rich personal o!n $ets already .
Gro2%3 R#%e
.eneral aviation has experienced over '9 years of rapid gro!th in all kinds
of economies.
'9? annual gro!th in ;/ for last )9 years
4? annual gro!th in 2anada for last )9 years@
-? annual gro!th in Arazil for last )9 years and rapid gro!th in Australia
for last +9 years
In the next ten years, the compound gro!th rate of 2hinaBs general
aviation aircraft demands !ill exceed (9? .eneral aviation aircraftBs for
aerial !orks, ',+', aircrafts for training and private flying, a ('?
compound gro!th rate
M#r$e% P*#5er,
8et Air!ays and 8et Cite , (,?
Air India , '-?
Indi.o, '+?
/pice8et, '(?
.oAir, )?
Paramount Air!ays, (?
2.2 INDIAN AVIATION
INDUSTRY
I"+#" A)#%o" I"+1,%r5 8 A
4re0 O)er)e2
*he aviation industry in India is one of those sectors that sa! a constant pace of
gro!th among the other industries in the !orld over the past many years. *he
open sky policy of the government has helped a lot of overseas players entering
the aviation market in India. >rom then, it has only been gro!ing in terms of
players and the number of aircrafts. At present, private airlines account for
around 3,? portion of the domestic aviation market.
*he 6th largest aviation market in the !orld is India. As per the Ministry of
2ivil Aviation, approximately (6.4 million passengers traveled toDfrom India in
(994, sho!ing a surge of )9? from (993. *he prediction stated that
international passengers !ill touch ,9 million by (9',. More opportunities in
the aviation industry in India are likely to make !ay for about -6 foreign
airlines from +6 countries.
Indian aviation industry today is poised to be among the top five aviation
nations in the !orld in the next '9 years. 2urrently, India is the 6th largest civil
aviation market. Eecent estimates suggest that domestic air traffic !ill touch
'-9#'49 million passengers a year, in the next '9 years and the international
traffic !ill exceed 49 million passengers a yearF. *he Indian Aviation Industry
is exploring opportunities to improve connectivity and is also looking at
enhancing the number of Indian carriers to various countries.F5ne of the key
achievements of India in the last decade has been to set#up an independent
regulator for economic regulation of airportsF.
2./ INDIAN AVIATION INDUSTRY- MARKET SI9E
In the last decade, domestic air traffic has 0uadrupled from ') million to ,(
million and international traffic more than tripled to )4 million. A similar trend
is observed in the cargo sector. *he rapidly expanding aviation sector handles
(., billion passengers across the !orld in a year@ moves +, million tonnes of
cargo through 6(9 airlines, using +,(99 airports and deploys (3,999 aircraft.
*oday, 43 foreign airlines fly to and from India and five Indian carriers fly to
and from +9 countries.
Passengers carried by domestic airlines during 8an#Gov (9'' !ere ,,.9)
million as against +-.4' million during the corresponding period of previous
year thereby registering a gro!th of '3.- per cent, according to data released by
irectorate .eneral 2ivil Aviation H.2AI.
*he air transport Hincluding air freightI in India has attracted foreign direct
investment H>II !orth ;/< +().)' million from April (999 to /eptember
(9'', according to the data provided by epartment of Industrial Policy and
Promotion HIPPI.
Private carriers are anticipated to post a combined profit of ;/< ),9=;/< +99
million for the financial year ending March )', (9'(, as per a report titled
7(9''#'( Aviation Industry 5utlook7 by 2enter for Asia Pacific Aviation
H2APAI India. 2APA India expects domestic traffic gro!th of '3#'4 per cent,
possibly as high as (9 per cent. International passenger numbers, !hich gre!
by about '9 per cent last year, are expected to increase to!ards the upper end
of a '9#'( per cent range over the next '( months.
2.: CONTRI4UTION OF AVIATION INDUSRTY IN INDIA;S GDP
'. *he gro!th in the Indian economy has increased the .ross omestic.
Product above 4? and this high gro!th rate !ill be sustained for a good
number of years.
(. Air traffic has gro!n enormously and expected to have a gro!th !hich
!ould be above (,? in the travel segment.
). In the present scenario around '( domestic airlines and above -9
international airlines are operating in India.
+. Jith the gro!th in the economy and stability of the country India has
become one of the preferred locations for the trade and commerce
activities.
,. *he gro!th of airlines traffic in Aviation Industry in India is almost four
times above international average.
-. Aviation Industry in India have placed the biggest order for aircrafts
globally.
3. Aviation Industry in India holds around -6? of the total share of the
airlines traffic in the region of /outh Asia
F1%1re -3#**e"!e, o0 A)#%o" "+1,%r5 " I"+#
*he challenges of the Indian aviation industry are cited belo!.
Passenger traffic is estimated to gro! at a 2A.E of over ',? in the
coming fe! years.
*he Ministry of 2ivil Aviation !ould have to handle around (49 million
passengers by (9(9.
/< ''9 billion investment is envisaged till (9(9 !ith ;/< 49 billion solely
for ne! aircraft and ;/< )9 billion for developing the airport
infrastructure.
2.< INDUSTRY ANALYSIS
*he players in aviation industry can be categorized in three groups:
P1.*- (*#5er, : Indian Airlines
Pr)#%e (*#5er, : 8et Air!ays, :ingfisher Airlines, /pice 8et, Air
eccan
S%#r% 1( (*#5ers: 5mega Air, Magic Air, Premier /tar Air K MCE
Airlines.
MARKET VIS-A-VIS LAST YEAR
4REAKUP STATISTICS&
CHAPTER /
/.1 IT SECTOR - AN OVERVIEW
*he computer systems design and related services industry is among the
economy7s largest and fastest sources of employment gro!th. 1mployment
increased by -'-,999 over the '66+#(99+ period, posting a staggering 4.9#
percent annual gro!th rate. *he pro$ected (99+#'+ employment increase of
+,),999 translates into '.- million $obs, and represents a relatively slo!er
annual gro!th rate of ).+ percent as productivity increases and offshore
outsourcing take their toll. HFIndustry output and employment pro$ections to
(9'+F by 8ay M. Aerman, Aureau of Cabor /tatisticsI
Lo!ever, the main gro!th catalyst for this industry is expected to be the
persistent evolution of technology and business7 constant effort to absorb and
integrate these resources to enhance their productivity and expand their market
opportunities.
1mployment of computer and information systems managers is expected to
gro! bet!een '4 to (- percent for all occupations through the year (9'+.
H2areer .uide to Industries (99-#93I
*he Indian I* sector is gro!ing rapidly and it has already made its presence felt
in all parts of the !orld. I* has a ma$or role in strengthening the economic and
technical foundations of India. Indian professionals are setting up examples of
their proficiency in I*, in India as !ell as abroad.
*he sector can be classified into + broad categories # I* /ervices, 1ngineering
/ervices, I*1/#AP5 /ervices, 1 Ausiness
I* /ervices can further be categorized into Information /ervices HI/I
outsourcing, packaged soft!are support and installation, systems integration,
processing services, hard!are support and installation and I* training and
education.
1ngineering /ervices include Industrial esign, Mechanical esign, 1lectronic
/ystem esign Hincluding 2hipDAoard and 1mbedded /oft!are esignI,
esign Malidation *esting, Industrialization and Prototyping.
I* 1nabled /ervices are services that use telecom net!orks or the Internet. >or
example, Eemote Maintenance, Aack 5ffice 5perations, ata Processing, 2all
2enters, Ausiness Process 5utsourcing, etc.
1 Ausiness Helectronic businessI is carrying out business on the Internet@ it
includes buying and selling, serving customers and collaborating !ith business
partners.
Ma$or *rends
*rends in Liring

*he bar chart sho!s that the recruitment of engineers and I* professionals in
the industry is gro!ing at the 2ompound Annual Eate of '+.,? approximately.
In the >N9-, the direct employment in the I*#I*1/ sector !as '.) million
people and the indirect employment !as ) million approximately.
*rends in /alary Likes
Along !ith abundant gro!th opportunities, I* sector is one of the highest
paying sectors. *he average increase in salary in I* sector across the levels !as
around '-? and the average increase in the I*e/ AP5 sector across the levels
!as in bet!een '-?#'4? Ee0uisites for balanced salaries #
1nd to poaching.
Eevie! of compensation according to the skills.
eveloping talent in#house.
1ntry of talented freshers in the industry.
I*: /uccess >actors
Increasing number of skilled professionals in I*.
*he demographic factor. Approximately -9? of the population of India lies in
the age group of ',#-,. More than half of the population of India is belo! the
age of (,. /o in the future, the number of !orking people is going to be more
than the number of dependants.
*he vast academic infrastructure of India. In the year (99-, *otal 1nrollment in
colleges !as 6.) million and India produced ++',999 *echnical graduates.India
has the second largest 1nglish#speaking !orkforce in the !orld.
*he Indian I* Industry
*he Information *echnology HI*I sector in India holds the distinction of
advancing the country into the ne!#age economy. *he gro!th momentum
attained by the overall economy since the late '669s to a great extent can be
o!ed to the I* sector, !ell supported by a liberalized policy regime !ith
reduction in telecommunication cost and import duties on hard!are and
soft!are. Perceptible is the transformation since liberalization # India today is
the !orld leader in information technology and business outsourcing.
2orrespondingly, the industry&s contribution to India&s .P has gro!n
significantly from '.(? in '666#(999 to around +.4? in >N(99-, and has been
estimated to cross ,? in >N(993. *he sector has been gro!ing at an annual
rate of (4? pDa since >N(99'.
Indian I* companies have globally established their superiority in terms of cost
advantage, availability of skilled manpo!er and the 0uality of services. *hey
have been enhancing their global service delivery capabilities through a
combination of organic and inorganic gro!th initiatives. .lobal giants like
Microsoft, /AP, 5racle, Cenovo have already established their captive centers
in India. *hese companies recognize the advantage India offers and the fact that
it is among the fastest gro!ing I* markets in the Asia#Pacific region
/.2 SECTOR STRUCTURE MARKET SI9E
*he Indian information technology industry has played a key role in putting
India on the global map. *hanks to the success of the I* industry, India is no!
a po!er to reckon !ith. According to the Gational Association of /oft!are and
/ervice 2ompanies HGA//25MI, the apex body for soft!are services in India,
the revenue of the information technology sector has risen from '.( per cent of
the gross domestic product H.PI in >N '663#64 to an estimated ,.4 per cent
in >N (994#96.
India7s I* gro!th in the !orld is primarily dominated by I* soft!are and
services such as 2ustom Application evelopment and Maintenance H2AMI,
/ystem Integration, I* 2onsulting, Application Management, Infrastructure
Management /ervices, /oft!are testing, /ervice#oriented architecture and Jeb
services.
*he government expects the exports turnover to touch ;/< 49 billion by (9'',
gro!ing at an annual rate of )9 per cent per annum, from the earlier fe!
million dollars !orth exports in early '669s.
*he government expects the exports turnover to touch ;/< 49 billion by (9'',
gro!ing at an annual rate of )9 per cent per annum, from the earlier fe!
million dollars !orth exports in early '669s
).) As per GA//25M7s latest findings:
Indian I*#AP5 sector gre! by '( per cent in >N (996 to reach ;/<
3'.3 billion in aggregate revenue Hincluding hard!areI. 5f this, the
soft!are and services segment accounted for ;/< ,6.- billion.
I*#AP5 exports Hincluding hard!are exportsI gre! by '- per cent from
;/< +9.6 billion in >N (993#94 to ;/< +3.) billion in >N (994#96.
Moreover, according to a study by /pringboard Eesearch, the Indian I*
services market is estimated to remain the fastest gro!ing in the Asia#Pacific
region !ith a 2A.E of '4.- per cent.
espite the uncertainty in the global economy, the top three I* ma$orsO
Infosys, *2/ and JiproOhave seen revenue gro!th from all important sources
of income: from the Gorth American and 1uropean regions, in the financial
services vertical and from application maintenance and development HAMI
offerings bet!een fiscal years (994 and (996.
O1%,o1r-"!
A research by .artner forecasts India as the undisputed leader in the
outsourcing space in the year (994. India7s most prized resource is its readily
available technical !ork force. India has the second largest 1nglish#speaking
scientific professionals in the !orld, second only to the ;/. It is estimated that
India has over + million technical !orkers, over ',4)( educational institutions
and polytechnics, !hich train more than -3,34, computer soft!are
professionals every year. *he enormous base of skilled manpo!er is a ma$or
dra! for global customers.
According to GA//25M soft!are and services exports Hincluding exports of
I* services, AP5, engineering services and EK and soft!are productsI
reached ;/< +3 billion in >N (994#96, contributing nearly 34 per cent to the
total soft!are and services revenue of ;/< ,6.- billion.
Do'e,%- M#r$e%,
India7s domestic market has also become a force to reckon !ith, as the existing
I* infrastructure evolves both in terms of technology and depth of penetration.
According to GA//25M, domestic I* market Hincluding hard!areI reached
;/< (+.) billion in >N (994#96 as against ;/< ().' billion in >N (993#94, a
gro!th of ,.) per cent.
India Inc7s demand for I* services and products has bolstered gro!th in the
domestic sector !ith deal sizes going up remarkably and contracts !orth ;/<
,9 million#;/< '99 million up for grabs.
/uch gro!th in the soft!are and services sector has been achieved because of
spectacular gro!ths in some segments. According to research firm .artner,
India7s personal computer HP2I market is likely to gro! by ').3 per cent to ''.'
million units in (996, aided by a surge in demand for laptops. *he laptop
market is expected to gro! by )3 per cent in (996 to ).-6 million units and
constitute a third of the total P2 market.
R1r#* Pe"e%r#%o"
According to a report of the Internet and Mobile Association of India HIAMAII
rural India has ).) million active internet users. /ince rural India !as mapped
for the first time, the year#on#year gro!th of internet users in rural India could
not be estimated.
*he research also notes there are ,., million people !ho claim to have used
Internet at some point in time.
Go)er"'e"% I"%#%)e,
*he government set up the Gational *askforce on Information
*echnology and /oft!are evelopment !ith the ob$ective of framing a
long term Gational I* Policy for the country.
1nactment of the Information *echnology Act, !hich provides a legal
frame!ork to facilitate electronic commerce and electronic transactions.
*he government#led Gational e#.overnance Program, has played an
important role in increasing internet penetration in rural India.
Ro#+ A3e#+
*he Indian information technology sector continues to be one of the sunshine
sectors of the Indian economy sho!ing rapid gro!th and promise.
According to a report prepared by Mc:insey for GA//25M, the exports
component of the Indian industry is expected to reach ;/< '3, billion in
revenue by (9(9. *he domestic component !ill contribute ;/< ,9 billion in
revenue by (9(9. *ogether, the
export and domestic markets are likely to bring in ;/< ((, billion in revenue,
as ne! opportunities emerge in areas such as public sector and healthcare, and
as geographies including AEI2 and 8apan opt for greater outsourcing.
/.: SCOPE OF IT INDUSTRY IN INDIA
*he I* industry has great scope for people as it provides employment to
technical and non#technical graduates and has the capability to generate huge
foreign exchange inflo! for India. India exports soft!are and services to
approximately 6, countries in the !orld. Ay outsourcing to India, many
countries get benefits in terms of labor costs and business processes. Also, the
Indian companies are broadening the range of services being provided to the
customers, !hich is resulting in more off shoring. *alent ac0uisition,
development and retention initiatives taken by the companies have brought
do!n the employee attrition rates, thereby providing more stability to the
employees and increasing their $ob commitment.
Many financial institutions are providing funds for the expansion of I* and
I*e/ businesses. In order to support I* and I*1/, the Indian .overnment is
also taking many steps. >or example:
'. *he .ovt. has provided incentives including tax holiday up to (9'9 and
competitive duty structures.
(. *he .ovt. is trying to reduce the international communication cost.
). It is providing infrastructure support through organizations such as soft!are
technology parks.

>uture of Information *echnology
I* !ill continue to gain momentum@ *elecom and !ireless !ill follo! the
trend. *he immense expansion in net!orking technologies is expected to
continue into the next decade also. I* !ill bring about a drastic improvement in
the 0uality of life as it impacts application domains and global competitiveness.
*echnologies that are emerging are ata Jarehousing and ata Mining. *hey
involve collecting data to find patterns and testing hypothesis in normal
research. /oft!are services that are being used in outsourcing !ill go a long
!ay.
T3e "%er"#%o"#* '(or% #"+ e=(or% !ro2%3 r#%e #"+ ")e,%'e"% %#.*e.
CHAPTER :
:.1 HEALTHCARE MANAGEMENT

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