Lecture 1
Lecture 1
Lecture 1
What is Marketing ?
Micro Level –
Inventory Management.
Wafer thin margins. Hence difficult to achieve break point.
Legal matters.
Operations & Administration.
FMCG Sector
The favorable demographics, higher incomes, low penetration and
growing per capita consumption. India’s per capita consumption
remains the lowest in the world
Strong rural growth backed by higher agricultural incomes and
increase in the value of land which is leading to more money in the
hands of farmers.
Companies have passed on the cost push inflation to consumers via a
judicious blend of price hikes, package size reduction.
Proliferation of modern trade which currently accounts for 5% of
sales but is growing at around 25-30% yoy.
Increased innovations and forays in new fast growing categories by
most players.
Large domestic market & changing lifestyles.
Challenges for Mktg.Managers
Consumer keeps limited inventory of these products (many of which
are perishable) and prefers to purchase them frequently, as and
when required.
Brand switching is often induced by heavy advertisement,
recommendation of the retailer or word of mouth.
Creating awareness and develop franchise for a new brand requires
enormous initial expenditure on launch advertisements, free samples
and product promotions.
A highly scattered market, supply of small value SKU's and poor
transport infrastructure makes logistics extremely difficult.
Maintenance of huge distribution n/w is extremely critical for
success.
Significant presence of unorganized sector & fairly simple basic
technology for most products makes it very competition oriented
sector.
IT/ITES Sector
IT services contribute over 8% of the overall GDP.
India is a popular choice for customers seeking
outsourced services because it is able to offer a 24*7
services by reduction in costs while maintaining
quality.
IT Exports account for 35% of the total exports with
potential of creating 3.5 million jobs in IT every year.
One way in which India stands out from other Asian
economies is in the better performance of IT in its
service sector.