Indian marketing environment

2. Indian Marketing EnvironmentToday
• HighVolatility in Indian
Market
• Diversity & Convergence
• Catering to Affluent
• Poor Markets also need
Marketing
• Engaging customers
24X7
• Consumer Communities
• Enhancing Access
• Price and value major
Determinants in
Consumption Behavior
• New Icons, New Role
Models
• Indian Global Brands
• Ecological Sensitivity
• Word of Mouth- a strong
influence on adoption

3. Hallmarks of Marketing Driven
Companies
• Innovation
• Quality of Products & Services
• Global Competitiveness
• Customer Centric product design
• Product perceived as good value for money
• Opportunity for customer to individualize the
product

4. The Marketing Environment and
Competitor Analysis
•SWOT analysis
•PEST analysis
•Five forces analysis

5. SWOT analysis
• Strengths (internal)
• Weaknesses (internal)
• Opportunities (external)
• Threats (external)

7. PEST analysis
• Political factors
• Economic factors
• Socio-cultural factors
• Technological factors

8. Political/legal
• Monopolies legislation
• Environmental protection laws
• Taxation policy
• Employment laws
• Government policy
• Legislation
• Others?

9. Economic Factors
• Inflation
• Employment
• Disposable income
• Business cycles
• Energy availability and cost
• Others?

10. Sociocultural factors
• Demographics
• Distribution of income
• Social mobility
• Lifestyle changes
• Consumerism
• Levels of education
• Others?

11. Technological
• New discoveries and innovations
• Speed of technology transfer
• Rates of obsolescence
• Internet
• Information technology
• Others?

12. Source: Adapted from M. E. Porter,
Competitive Strategy, Free Press,
1980, p. 4.
Threat of
substitutes
Potential
entrants
Threat of
entrants
Suppliers
Bargaining
power
Substitutes
Buyers
Bargaining
power
COMPETITIVE
RIVALRY
Five forces analysis

13. Five Forces Analysis: Key
Questions and Implications
• What are the key forces at work in the competitive environment?
• Are there underlying forces driving competitive forces?
• Will competitive forces change?
• What are the strengths and weaknesses of competitors in relation to
the competitive forces?
• Can competitive strategy influence competitive forces (eg by building
barriers to entry or reducing competitive rivalry)?

15. Objectives
• Tracking & IdentifyingOpportunities in the
Macroenvironment
• Demographic, Economic, Natural,
Technological, Political, & Cultural
Developments

16. Macroenvironmental Forces
• World trade enablers
• Asian economic power
• Rise of trade blocs
• International monetary crises
• Use of barter & countertrade
• Move towards market economies
• “Global” lifestyles

17. Macroenvironmental Forces
• Opening of “new” markets
• Emerging transnational firms
• Cross-border strategic alliances
• Regional ethnic & religious conflict
• Global branding

18. Demographic Environment
Worldwide Population Growth
Population Age Mix
Ethnic Markets
Household Patterns
Educational Groups
Geographical Shifts in Population
Shift from Mass Market to Micromarkets

19. Economic Environment
Income Distribution
Subsistence economies
Raw-material-exporting economies
Industrializing economies
Industrial economies
Savings, Debt, &
Credit Availability

20. Natural
Environment
Higher Pollution
Levels
Increased Costs
of Energy
Shortage of
Raw Materials
Changing Role
of Government

21. Accelerating Pace
of Change
Unlimited Opportunities
for Innovation
Increased
Regulation
Issues in the Technological
Environment
Varying
R & D Budgets

22. Political-
Legal
Environment
Increased
Legislation
Special-
Interest
Groups

23. Social/Cultural Environment
Of
Organizations
Of
Nature
Of
Oneself
Of
Society
Of
the Universe
Of
Others
Views
That Express
Values

24. Social/Cultural Environment

25. Review
• Tracking & IdentifyingOpportunities in the
Macroenvironment
• Demographic, Economic, Natural,
Technological, Political, & Cultural
Developments