The market environment is a marketing term and refers to all of the forces outside of marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. The market environment consists of both the macro environment and the micro environment
Study of human population in terms of size, density, location, age gender, race, occupation, other stats India’s demographic report findings
* Estimated 1.1 billion people live in India, that makes India 2ND most populous country in the world * 70% of the population lives in rural areas, that trend is slowly changing due to migration to urban area, which is largely due to rapid urbanization * India’s largest urban agglomerate are Mumbai, Chennai, Kolkata, Delhi, Hyderabad & Bangalore. * One of the largest middle class in the world, with rising income. * Has one of the largest & youngest populations in the world with very high aspiration
Example of How have companies responded to the changing environment?
* Young group attracted competitors in the area of motor bikes, readymade garments, mobile phones ,soft drinks(coke,pepsi,gatorrade,red bull), fast food chains (mc Donald, kfc,dominos) * 50% population is woman and their traditional roles have also changed, most women are self-confident and also educated and empowered. This shift has resulted in a whole range of new products like ready to cook, ready mixes, cooking range, washing machine, vacuum cleaner. * More egalitarian relationship between husband & wife & also a move toward more shared decision making pattern between parents & children. Despite these changes the fact remains that most people continue to give more priority to the families & families continue to maintain strong kinship, bonds & ties. Examples of ads like washing machine, Mdh masala, kurkure ads giving total picture of family & love
Political & legal environment
It consists of Government Regulations, policies, social groups etc... Any kind of business must be abided by the legal policies of the nation. The Law is for the purpose of protecting customers from exploitation by the business man, to protect interest of society and also to protect companies from unfair competition. Examples of laws in India
* Consumer Protection Act, Environment protection Act Indian Contract Act, Competition Law etc. Apart from this every citizen is required to be abided by the Indian Constitution. * In food companies need approval to launch brands that already exist in the market such as another cold drink or a brand of rice * It is mandatory that all vegetarian food products carry green dot & all non vegetarian food products carry red dot * All products must have the MRP printed on the pack
* In India government making the rule that all public transport like the buses & auto rickshaw use CNG as fuel instead of diesel & petrol
The natural environment involves natural resources that are needed as inputs by marketers or that are affected by marketing activities. During the past two decades environmental concerns have steadily grown. Some trend analysts labeled the specific areas of concern were: Nature is the source of raw material for the production a product. The raw material may be renewable, infinite or depleting. In all the cases the raw material shall be preserved and wastage must be minimized. Also the pollution should be minimized to preserve the ecology. Marketers in the current scenario try to Go Green and promote the Eco friendly Concept. For Instance Idea promoted Save Paper, and many companies are promoting Go Green campaign.
Examples of how natural environment factors influenced marketing decision * campaign against coke in a village in Kerala alleging water shortage & environment deterioration in the vicinity environmentalist actively campaigning...
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