Relevance of Marketing Concepts to Indian Companies

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Adopts Attitude of Profit Maximization at Expense of Customers Consumers are taken for granted Entirely Profit Oriented Outdated Concepts Dangerous for Business

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 Consumer Orientation 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 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 Micro / Internal factors Corporate resources Suppliers Customers Middlemen Competitors Society Macro / External factors Demographic Economic Social and cultural Political Technological Natural / physical Market competition Factors affecting consumer demand

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 De-licensing Increased competition 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

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 Indian 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 manufacturers, traders and exporters. In brief, the relevance of marketing is growing fast in Indian economy. We have to use this favourable situation to our benefit.

Meaning of rural marketing Rural marketing refers to marketing activities in the rural area which covers major portion of total geographical area and population of the country. Rural markets refers to marketing centers operating in the rural areas where favorable marketing infrastructure may not be present.   Features of Rural Marketing In India Large number of buyers Demand relates to harvest season Rural consumers get income from agriculture Consumers have diverse socio-economic background Inadequate infrastructure facilities Fast changing demand pattern  

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 villagers 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

Factors Contributing To Growth Of Rural Marketing Economic and Agricultural development Large scale expansion and infrastructure facilities Changes in demand pattern Growth of industrial activities Impact of green revolution Favorable government policies

Example Market Scenario Barriers The Challenge Campaign Objectives With increasing life expectancy on one hand and rising inflation and medical costs on the other, the need for planning one’s retirement was emerging as an important one. Barriers Low awareness of the need of early retirement planning The word retirement bringing all the negatives associated with the old age. The Challenge To re-position the traditional concept of retirement planning Create relevance among 30-40 age group Campaign Objectives Bring the concept of planning for retirement into consideration Sales target: INR 400 million Share of total pension market :10 percent

Example Role of Media Creative strategy Offers a fresh perceptive by mirroring the never say die attitude of the 35 years old The message “retirement from work – not life!” Role of Media Retirement solution seminar Direct marketing campaign Retirement planner & retirement calculator Television, newspaper, consumer magazine, radio, internet etc. Results Campaign triggered a large number of consumer response calls (35000 calls and 3000 e-mails). Sales achieved for period sep-mar were INR 740 million as compared to the expected INR 400 million. Market share gain: from 10% to 23%