Presentation on theme: "Relevance of Marketing Concepts to Indian Companies"— Presentation transcript:
1 Relevance of Marketing Concepts to Indian Companies
2 Two divisions of Marketing Concepts Traditional Marketing ConceptModern Marketing ConceptTraditional Marketing ConceptNot Relevant in Indian CompaniesAdopts Attitude of Profit Maximization at Expense of CustomersConsumers are taken for grantedEntirely Profit OrientedOutdated ConceptsDangerous for Business
3 Modern Marketing Concept Production as per needs and expectations of customersModern concept which is against profit maximization and exploitation of customersUses Marketing as a means for social welfareConsumer OrientationRealising organizational goals including adequate profit earningConsumer is treated as purpose of marketingNew Orientation Of MarketingProduction Orientation – Marketing OrientationProduct Orientation – Customer OrientationSupply Orientation – Demand OrientationSales Orientation – Satisfaction OrientationInternal Orientation – External Orientation
4 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 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.
6 Present Marketing Environment in India Population GrowthLiberal Economic SituationFavorable Agricultural SituationGrowing Importance of Social SituationChanging Needs of ConsumersImportance of Advertising and PublicityRole of Computers in Marketing Activities
7 Marketing Challenges After Liberalization De-licensingIncreased competitionPressure of buyer’s marketDominance of multinationalsGoing globalFar Reaching Change in Indian Business EnvironmentEntrepreneurial freedomRise in foreign investmentRadical changes in capital marketsSignificant changes in banking sectorSuperiority of private sector
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 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.
9 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 IndiaLarge number of buyersDemand relates to harvest seasonRural consumers get income from agricultureConsumers have diverse socio-economic backgroundInadequate infrastructure facilitiesFast changing demand pattern
10 Changing Profile Of Rural Marketing Good demand for certain articles like radio, TV, readymade garments etc.. And new products getting support from rural marketPosition of rural market has changed compared to last 20 years42% of Indian villages own TV sets and this shatters the old myth that villagers resist changeIn service sector, Canara bank is one of the largest banks in rural IndiaCoke strategies to capture rural marketBetween , 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
11 Factors Contributing To Growth Of Rural Marketing Economic and Agricultural developmentLarge scale expansion and infrastructure facilitiesChanges in demand patternGrowth of industrial activitiesImpact of green revolutionFavorable government policies
12 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.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 age groupCampaign ObjectivesBring the concept of planning for retirement into considerationSales target: INR 400 millionShare of total pension market :10 percent
13 Example Role of Media Creative strategy Offers 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 ( calls and s).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%