The document discusses the changing Indian marketing environment. It outlines various components that make up the marketing environment, including demographic, economic, agricultural, industrial, social, rural, and legal factors. It notes that India's population is growing, literacy rates are rising, and the middle class is expanding rapidly. The economy is also growing steadily, with a shift from agriculture to industry and services. Rural markets are developing and becoming more urbanized. The legal environment also impacts marketing but reforms have been slow. Overall, the Indian marketing environment is becoming more dynamic and robust due to these changes.
The document discusses the changing Indian marketing environment. It outlines various components that make up the marketing environment, including demographic, economic, agricultural, industrial, social, rural, and legal factors. It notes that India's population is growing, literacy rates are rising, and the middle class is expanding rapidly. The economy is also growing steadily, with a shift from agriculture to industry and services. Rural markets are developing and becoming more urbanized. The legal environment also impacts marketing but reforms have been slow. Overall, the Indian marketing environment is becoming more dynamic and robust due to these changes.
The document discusses the changing Indian marketing environment. It outlines various components that make up the marketing environment, including demographic, economic, agricultural, industrial, social, rural, and legal factors. It notes that India's population is growing, literacy rates are rising, and the middle class is expanding rapidly. The economy is also growing steadily, with a shift from agriculture to industry and services. Rural markets are developing and becoming more urbanized. The legal environment also impacts marketing but reforms have been slow. Overall, the Indian marketing environment is becoming more dynamic and robust due to these changes.
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 The Indian Marketing Environment 13 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.