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Outdated Concepts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 MarketingProduction Orientation – Marketing Orientation

Product Orientation – Customer Orientation

Supply Orientation – Demand Orientation

Sales Orientation – Satisfaction Orientation

Internal Orientation – External Orientation

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Marketing environmentMarketing 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 environmentIt 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 factorsCorporate resources

Suppliers

Customers

Middlemen

Competitors

Society

Macro / External factorsDemographic

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

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

 

 

Features of Rural Marketing In India

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.

 

Changing Profile Of Rural MarketingGood 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

Market ScenarioWith 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.

BarriersLow awareness of the need of early retirement planningThe word retirement bringing all the negatives associated with the old age.

The ChallengeTo re-position the traditional concept of retirement planningCreate relevance among 30-40 age group

Campaign ObjectivesBring the concept of planning for retirement into consideration Sales target: INR 400 millionShare of total pension market :10 percent

Example

Creative strategyOffers a fresh perceptive by mirroring the never say die attitude of the 35 years oldThe message “retirement from work – not life!”

Role of MediaRetirement solution seminarDirect marketing campaignRetirement planner & retirement calculatorTelevision, newspaper, consumer magazine, radio, internet etc.

ResultsCampaign 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%

Example