Relevance of Marketing Concepts to Indian Companies : Relevance of Marketing Concepts to Indian Companies Two divisions of Marketing Concepts : Two divisions of Marketing Concepts Traditional Marketing Concept
Modern Marketing Concept Traditional Marketing Concept Not Relevant in Indian Companies
Adopts Attitude of Profit Maximization at Expense of Customers
Consumers are taken for granted
Entirely Profit Oriented
Dangerous for Business Modern Marketing Concept : Modern Marketing Concept Production as per needs and expectations of customers
Modern concept which is against profit maximization and exploitation of customers
Uses Marketing as a means for social welfare
Realising organizational goals including adequate profit earning
Consumer is treated as purpose of marketing New Orientation Of Marketing Production Orientation – Marketing Orientation
Product Orientation – Customer Orientation
Supply Orientation – Demand Orientation
Sales Orientation – Satisfaction Orientation
Internal Orientation – External Orientation Marketing environment : Marketing environment Marketing environment refers to the socio-economic and political situation within which the business enterprises have to operate.
This environment creates new opportunities and challenges for the business.
Thus it is a result of various marketing forces like market competition, introduction of new products in the market etc. Features of marketing environment It is the situation within which the marketing firms have to operate.
Marketing firms have practically no control over it.
It is a net result of various socio economic factors.
It is always flexible or liable to change.
Marketing environment and marketing management are both related concepts. Factors determining marketing Environment : Factors determining marketing Environment Micro / Internal factors
Society Macro / External factors
Social and cultural
Natural / physical
Factors affecting consumer demand Present Marketing Environment in India : Present Marketing Environment in India Population Growth
Liberal Economic Situation
Favorable Agricultural Situation
Growing Importance of Social Situation
Changing Needs of Consumers
Importance of Advertising and Publicity
Role of Computers in Marketing Activities Marketing Challenges After Liberalization : Marketing Challenges After Liberalization De-licensing
Pressure of buyer’s market
Dominance of multinationals
Going global Far Reaching Change in Indian Business Environment Entrepreneurial freedom
Rise in foreign investment
Radical changes in capital markets
Significant changes in banking sector
Superiority of private sector Slide 8: Growing Relevance of Marketing to Indian Economy Marketing, now occupies an important position in the Indian economy. It acts as a vehicle for the promotion of industrial and economic development.
The internal marketing system in India is fast expanding and improving. Our markets are flooded with and foreign goods
Marketing is likely to become core sector of Indian economy in years to come. Exploiting growing market opportunities is likely to become a new challenge to Indian economies, traders and exporters.
In brief, the relevance of market is growing fast in Indian economy. We have to use this favourable situation to our benefit. Slide 9: Meaning of Rural Marketing Rural Marketing refers to marketing activities in the rural area which covers major area of geographical area and population of the country. Rural markets refers to marketing centers operating in the rural areas where favourable marketing infrastructure may not be present Features of Rural Marketing in India Large numbers of buyers
Demand relates to harvest season
Rural consumers get income from agriculture
Consumers have diverse socio-economic background
Inadequate infrastructure facilities
Fats changing demand pattern Slide 10: Changing Profile of Rural Marketing Good demand for certain articles like radio, TV, readymade garments etc… And new products getting support from rural market.
Position of rural market has changed compared to last 20 years
42% of Indian villages own TV sets and this shatters the old myth that village resist change
In service sector, canara bank is one of the largest banks in rural India
Coke strategies to capture rural market
Between 1997-98, the percentage of low income household came down from 73 to 51 percent while high income earning households increased by 0.3 to 2.3 percent Slide 11: Factors Contributing to Growth of Rural Marketing Economic and Agriculture development
Large scale expansion and infrastructure facilities
Changes in demand pattern
Growth of industrial activities
Impact of green revolution
Favourable government policies