Indian Market & Its Environment:

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It is difficult to analyze the environmental factors affecting Indian market. Ours is a vast country with various religions, caste, sub-caste, languages, culture, etc. Each of these factors operates at different levels & art different places.


1. Vast Market:

The Indian market is the second largest in the world considering its population. If consumption is considered, it has one of the lowest levels of consumption. Hence, it can be said that majority of the market for various products has been left untapped. Region-wise, the Indian Market can be broadly classified into Four Parts:
a) Northern Market
b) Southern Market
c) Western Market
d) Eastern Market


2) Rural Market:

Majority of the Indians live in rural areas. Hence, rural markets have a significant influence on the company’s marketing strategy


3) Cultural & Religion:

India is a country with many religions each religion has its own culture & most of the Indians are religious. The culture affects the habits of people. Hence, it has to be considered before deciding what is to be sold.
Eg: Jainism completely prohibits the consumptions of meat. Hence, it is difficult to sell meat where Jains are living


4) Economic Conditions:

India is one of the fastest developing countries. The standard of living is increasing every year. This indicates that the marketing opportunities in our country are vast.


5) Government:

We are following the policy of mixed Economy i.e., Market is neither totally free (Capitalism) nor it is fully controlled (Socialism). The government encourages consumerism & hence he marketers are gradually accepting the marketing concept.


6) Intermediaries:

Our country has two types of distribution system. They are:
Public distribution system, where essential commodities are directly sold to the consumers through government agencies.
Open distribution system, where the products are sold in the open market. The open distribution system in our country is the traditional one. The chain of distribution is once of the most efficient chains of the world. Wholesalers, retailers, brokers, etc are the intermediaries operating in our country.


7) Press:

Press in our country is not as sophisticated as in the developed countries. Most of the newspapers & magazines are controlled by big business houses.


8) Technology:

Most of the company/companies in our country import the technology from other countries. Investment in research is one of the lowest in the world.

Rural Marketing Challenges & Opportunities:


Majority of Indians live in villages & most of them are farmers. Rural markets in our country are changing rapidly. Many companies have not tried to find out the needs of rural consumers. Hence, many rural markets have been left untapped.


Problems of Rural Marketing:


About 80% of villages do not have proper infrastructural facilities like transportation, communication, etc. People in the rural market purchase in small quantities; usually, they behave as group. Hence, it is difficult to influence their behavior to deliver a product directly to the rural consumers; a company has to incur double the cost of what it incurs in case of urban consumers.
Illiteracy among villagers makes it difficult to promote products. Most of them purchase because of their belief.

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