Marketing Environment in India

06/02/2020 0 By indiafreenotes

Marketing Environment is the combination of external and internal factors and forces which affect the company’s ability to establish a relationship and serve its customers.

The marketing environment of a business consists of an internal and an external environment. The internal environment is company-specific and includes owners, workers, machines, materials etc. The external environment is further divided into two components: micro & macro. The micro or the task environment is also specific to the business but external. It consists of factors engaged in producing, distributing, and promoting the offering. The macro or the broad environment includes larger societal forces which affect society as a whole. The broad environment is made up of six components: demographic, economic, physical, technological, political-legal, and social-cultural environment.

Importance of Environment Analysis

  1. It helps in marketing analysis.
  2. It can assess the impact of opportunities and threats on the business.
  3. It facilitates the company to increase general awareness of environmental changes.
  4. It is possible to develop effective marketing strategies on the basis of analysis.
  5. It helps to capitalize the opportunities rather than losing out to competitors.
  6. It facilitates to understand the elements of the environment.
  7. It helps to develop best strategies, in the light of analyzing “what is going around the company”.


India is one of the largest consumer markets in the world, with its population of middle-class consumers expected to reach 200 million in 2020 and 475 million in 2030. But it is a complex and diverse consumer market, and it is vital to tailor your marketing strategies and even your products to local preferences. In addition to intense competition from both small and large local retailers and international companies, you must consider the diversity of cultural backgrounds, differing levels of wealth and sophistication, and the sheer size of both the population and land mass.

The best way to deal with the complexities of the Indian market for marketing and advertising purposes is to invest in and hire local knowledge. Both Indian and international companies specialise in marketing in India. A comprehensive marketing plan that considers core elements such as your brand, stakeholder management, public relations, media (including digital and social media), and your product/brand value proposition is critical.

Be aware, however, that you will need to continually reassess your marketing strategy and plan. The Indian socio-economic environment is constantly evolving and changing, which in turn impacts on consumer choices. You should be particularly mindful of factors.

Brand Awareness

Indian middle-class consumers place strong importance on brands, particularly luxury brands. Status is a key factor  many people will buy luxury goods not because they necessarily like them, but because they are representations of success. Make sure you have a specific strategy focusing on brand localisation, brand building and awareness creation. New entrants to the market with a recognised brand may wish to consider a product launch or media conference to announce their arrival in India.

Price Consciousness

For everyday commodities, price is an important consideration for Indian consumers, particularly at the lower-middle class and lower- income levels. As opposed to status items on which wealthier Indian consumers are willing to spend more, non-status items are likely to be chosen based on price.

Demographic Dynamics

India’s middle and upper- middle income households in larger cities are demanding quality across a wide range of products and services, especially those that focus on health and wellness, as well as education. The rural consumer market in India, comprising 700 million people, is largely underserviced at the moment for health and wellness goods and services, education and other consumer goods and services, leaving ample opportunity for growth.


As explored earlier in this guide, India is still a developing country with a less sophisticated logistics supply chain than in Australia and many of Australia’s traditional, more developed export markets. Less-developed infrastructure in some poorer regions in particular may cause delays in getting goods to markets and consumers.

Product and Service adaptations

You may need to adapt your product to meet Indian preferences or requirements. Adapting to local regulations, tastes and cultural preferences vastly improves your chances of success.

Brand Marketing and Advertising

Language, culture and symbolism need to be considered when marketing and advertising in India. Generally, you canpreserve your English company name when trading in India. However, if you choose to adopt a name with a more local flavour, seek trusted advice before you register the name. Advertising is subject to some regulation in India. Enforcement of these regulations is not as strict as in some other countries unless an advertisement incites public outrage.