The Indian Marketing Environment 1

The Indian Marketing

Environment

The Indian Marketing Environment 2
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 3
Environmental
Customer
Marketing
Competition
Variables
Trade
Price
Place
Product
Promotion
Mix
The Indian Marketing Environment 4
Indian Marketing Environment

a. 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) .
Diverse religions and languages
Dialects in few hundreds.

The Indian Marketing Environment 5
b. Economic Scene
Top ten economies of the world.
Our GDP is growing at 5.5% per annum.
Agriculture 16%
Industry 24%
Services 60%
Slow growth rates till 70s. Average 3% p.a.
Last two decades have seen massive growth in the
industry and services sector.
In 90s spectacular growth after liberalization
One of the fastest growing economies of the
world
The Indian Marketing Environment 6
c. Agricultural Scene

Predominance is there. Dependence has reduced
2
/
3
rd population dependent directly/indirectly on
agriculture.
Rural markets development at a faster rate.
Impressive achievements. Self dependent. Rare
foodgrain imports.
Main cause of development of other sectors.
The Indian Marketing Environment 7
d. Industrial scene


Contribution to GDP growth increasing

More than this, there are qualitative change

Rapid foreign investment and competition from
multinational companies.

The Indian Marketing Environment 8
e. Social scenario: The middle class explosion

Estimate of 25 crores in size
Rapid industrial growth seen emergence of professionals in
many spheres.
Target group for most of the companies.
The Indian Marketing Environment 9
Social scenario: The middle class explosion

Emerged as the consumption community of the country.
Better education, higher aspirations.
Consumption of non food items on the increase
Joint families giving in. Concept of nuclear families.
Higher disposable incomes.
Demand for lifestyle products is on the rise.
The Indian Marketing Environment 10
f. Rural marketing scenario

Shown impressive growth-television, mobile penetration.
Earthenware yielded place to a variety of new
kitchenware.
Becoming increasingly urbanized.
The Indian Marketing Environment 11
Rural marketing scenario
Tapping these markets continues to bewilder most
companies.
Future growth lies in this market.
Videocon tapping all towns upto 50,000 population
for increasing television sales.
Huge, untapped market.
The Indian Marketing Environment 12
g. Legal scenario
Has direct impact on the marketing environment.
E.g.: The introduction of Consumer Protection Act and
Consumer Courts.
Pace of legal reforms slow. 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.
Grim scenario
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h. What do we observe

Indian marketing environment acquiring greater
dynamism and robustness
Evolution of Middle class
Growing rural markets
Lifestyles undergoing rapid changes.
Demand for lifestyle products.
The Indian Marketing Environment 14
New Economic policies
1. New Industrial Policy
Delicensing of industries.
Fera relaxation
MRTP relaxation
Curtailment of the role of the public sector.

2.New Trade Policy
Freer Trade
Linking of imports to exports
The Indian Marketing Environment 15
Relying more on exchange rates and tariffs.
Lowering of tariffs
Convertibility of rupee and the new exchange rate system.
Encouragement to exports.
Open door to foreign investment.
Integrating the countrys economy with the global economy.