Khadi And Village Industry

Published Date: 02 Nov 2017

Questions 2

Assess the "marketing environment (including rural marketing )of any two of the following industries:

Automobile

Banking

Chemical

Cement

Defense Services

Electronic

Engineering

Fashion

Healthcare

IT Hardware / IT Software

Small Scale Industry and Khadi and Village Industry

Textile

Tourism

Answer. The market environment is a marketing  refers to factors and forces that affect a firm’s ability to build and maintain successful relationships with customers. Three levels of the environment are: Micro (internal) environment - small forces within the company that affect its ability to serve its customers. Meso environment – the industry in which a company operates and the industry’s market(s). Macro (national) environment - larger societal forces that affect the microenvironment.

Micro-Environment (internal environment)

The micro environment refers to the services that are close to the company as well as affect its ability to serve its consumers. It includes the company itself, its suppliers, marketing intermediaries, customer markets and publics. A firm's macro environment includes all of the following EXCEPT: Competitors

The company aspect of microenvironment refers to the internal environment of the company. This includes all departments, such as management, finance, research and development, purchasing, operations and accounting. all of these departments has an impact on marketing decisions. For example, research and development have put in as to the features a product can achieve and accounting approve the financial side of marketing plans and budgets.

The suppliers of a business are also an essential aspect of the microenvironment because even the smallest amount delay in receiving supplies can cause in customer disappointment. Marketing managers must look at supply accessibility and other trends dealing with suppliers to make sure that product will be delivered to consumers in the time frame mandatory in order to preserve a strong customer relationship.

Marketing intermediaries refers to resellers, physical distribution firms, marketing services agencies, and financial intermediaries. These are the persons that help the company prop up, sell, and distribute its products to final consumers. Resellers are those that grip and sell the company’s product. They equal the distribution to the customers and include places such as Wal-Mart, Target, and Best Buy. Physical distribution firms are positions such as warehouses that shop and transport the company’s product from its origin to its destination. Marketing services agencies are companies that suggest services such as conduct marketing research, advertising, and consulting. Financial intermediaries are institutions such as banks, credit companies and insurance companies.

Another feature of microenvironment is the customers. There are diverse type of customer markets including user markets, business markets, government markets, international markets, and reseller markets. The user market is made up of persons who buy goods and services for their own private use or use in their household.

Business markets include those that buy goods and services for use in producing their own products to sell. This is diverse from the reseller market which includes businesses that buy goods to resell as is for a profit.

These are the same companies mentioned as market intermediaries. The government market consists of government agencies that purchase goods to produce public services or transfer goods to others who require them. International markets include buyer in other countries and includes customers from the previous categories.

Competitors are also a feature in the microenvironment and include companies with alike offerings for goods and services. To remain economical a company must consider who their biggest competitor are while considering its own size and position in the industry. The company should build up a strategic benefit over their competitors.

The final portion of the microenvironment is publics, which is any group that has an curiosity in or impact on the organization’s capability to meet its goals. For example, financial publics can hold back a company’s capability to obtain funds affecting the level of credit a company has. Media publics include newspapers and magazines that can put out articles of interest on the subject of the company and editorial that may influence consumers’ opinions. Government publics can affect the company by passing legislation and laws that put limitations on the company’s actions. Citizen-action publics include environmental groups and minority groups and the actions of a company and put them in the public spotlight. Local publics are neighbourhood and community organizations and will also question a company’s impact on the local area and the level of responsibility of their actions. The general public can greatly affect the company as any modify in their attitude, whether affirmative or negative, can basis sales to go up or down because the general public is often the company’s customer base. And finally those who are employed within the company and deal with the organization and construction of the company’s product.

Macro-Environment (external environment)

The macro environment refers to all forces that are part of the larger society and affect the microenvironment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.

Demography refers to studying human populations in terms of size, density, location, age, gender, race, and occupation. This is a very essential factor to study for marketers and helps to break up the population into market segments and target markets. An example of demography is classify groups of people according to the year they were born. These classifications can be referred to as baby boomers, who are born between 1946 and 1964, generation X, who are born between 1965 and 1976, and generation Y, who are born between 1977 and 1994. Each classification has different description and cause they find vital. This can be favourable to a marketer as they can decide who their product would benefit most and tailor their marketing plan to pull towards you that segment. Demography covers many aspect that are important to marketers including family dynamics, geographic shifts, work force changes, and levels of diversity in any given area.

Another phase of the macro environment is the economic environment. This refers to the purchasing power of potential customers and the ways in which persons pay out their money. Within this area are two different economies, subsistence and industrialized. Subsistence economies are base more in agriculture and consume their own industrial output. Industrial economies have markets that are diverse and carry many diverse type of goods. Each is essential to the marketer because each has a highly different spending pattern as well as different distribution of wealth.

The natural environment is another important issue of the macro environment. This includes the natural resources that a corporation uses as input that affects their marketing activities.

The unease in this area is the increased pollution, shortage of raw materials and increased governmental intervention. As raw materials become increasingly scarcer, the ability to produce a company’s product gets much harder. Also, greenhouse gasses can go as far as negatively distressing a company’s reputation if they are known for damaging the environment. The last concern, government intervention can make it increasingly harder for a corporation to fulfill their goals as requirements get more rigorous

The technological environment is maybe one of the greatest changing factors in the macro environment.. As these markets develop it can make new markets and new uses for products. It also require a company to stay in front of others and inform their own technology as it becomes outdated. They must stay up to date of trends so they can be part of the next big thing, rather than becoming obsolete and suffering the cost financially.

The political environment includes all laws, government agencies, and groups that influence or bound other organizations and individuals within a society. It is important for marketers to be alert of these limitations as they can be complex. Some products are keeping up by both state and federal laws. There are even restrictions for some products as to who the target market may be, for example, cigarettes should not be marketed to younger children.

The aspect of the macro environment is the cultural environment, which consists of institutions and basic values and beliefs of a group of people. The values can also be further considered into core beliefs, which accepted on from generation to generation and very hard to change, and secondary beliefs, which be likely to be easier to control. As a marketer, it is vital to know the dissimilarity between the two and to focus your marketing campaign to reflect the values of a target audience.

When dealing with the marketing environment it is chief for a corporation to become proactive. by means of doing so, they can create the kind of surroundings that they will prosper in and can become more proficient by marketing in areas with the maximum customer potential.

Banking

A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection between customers that have capital deficits and customers with capital surpluses.

In other English common law jurisdictions there are statutory definitions of the business of banking or banking business.. In particular, mainly of the definitions are from legislation that has the purpose of entry flexible and supervising banks somewhat than regulating the real business of banking. However, in a lot of cases the statutory definition closely mirrors the common law one. Examples of statutory definitions:

"banking business" means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation).

"banking business" means the business of either or both of the following:

receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than [3 months] ... or with a period of call or notice of less than that period;

paying or collecting checks drawn by or paid in by customers.

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking, the cheque has lost its superiority in most banking systems as a payment instrument. This has lead legal theorists to advise that the cheque based definition should be broaden to include financial institutions that carry out current accounts for customers and allow customers to pay and be paid by third parties, even if they do not pay and collect checks.

Marketing came into Indian banks in the delayed 1950's not in the type of marketing concept but in the form of advertising and promotion concept. Soon it was realized that marketing transcends advertising and friendliness'. Till 1950 it was recognized that personal selling was not crucial.

The bankers went out of their way to avoid being accuse of selling. The bankers even eliminate the word 'selling' and they called the occupation of customer contact 'business development function'. The bankers' attitude and comprehension about marketing changed in the 1960's. They began to realise that marketing was a lot more than smiling and friendly tellers2. The idea of purchaser ease began in the late fifties and it flourished in the1960's.Bankers were beginning to appreciate the concept of market segmentation in the late 1960's. The bank marketing profession changed dramatically in the 1970's. Marketing positions in banks were created and marketing was usual as an organisational imperative

Challenges of bank marketing

· Technology

Marketing by private sector banks and foreign banks is more efficient than public sector banks because these banks are IT oriented. Private sector banks and foreign banks are attract more customers by given that e-services. Thus, technology has become a dispute before the public sector banks.

· Untrained Staff

Often it happens that when a potential purchaser approach the branch, the employees appear to have very small knowledge about the scheme. This reflect an unattractive picture of our bank’s image. Banks are not losing one prospective customer but 20 more customers who would be contact of this man. Attitude of the employees towards clients is also not very fine. Thus, it is a need of time to reorient the personnel.

· Rural Marketing

This is a large challenge prior to the Indian banks to increase rural marketing to increase their customers. Banks should unlock their branches not only in the urban and semi-urban areas but also in the rustic areas.

· Trust of Customers

Marketing can be improved only by increase the clients. Clients can be greater than before or attracted only by winning the faith of the customers.

· Customer Awareness

Customer awareness is also a dare before the banks. Bank can bazaar their products and services by give the proper knowledge about the product to customer or by awarding the customer about the products. Bank should educate the customers.

Strategies for the enhancement of bank marketing

In the fierce competitive market, requirements of customer keep altering. Hence, our marketing strategy must be vibrant and flexible to meet the changing circumstances. Here are steps that form victorious and useful marketing strategy for bank products.

· Emphasis on Deposits

Emphasis, though in a discrete manner, should be specified to assemble more of term deposits as they are more beneficial for the bank in contrast to demand.

· Form a Saleable Product Scheme

Bank should figure a scheme that meets the requirements of customers. A bunch of such proposals can also form a product. A bank product may include deposit scheme, an account offering more flexibilities, technically sound banking, tele/mobile/net banking, an inventive scheme targeted to special group of customers like children, females, old aged persons, businessman etc.

· Effective Branding

Man is a bundle of sentiments and emotions. This can effectively be helpful in branding our products. taking into consideration the features of products and target group of customers, the product can be successfully branded so as to sound it catchy and appealing.. The target group and the silent feature of the product should look like brand name. This will help a lot in building the brand successful. All employees and all our campaigns should refer the product by its brand name only so that to hit the same in the customer’s mind.

· Products for Women

The national perspective plan for women states that 94 pc of women workers are engaged in the unorganized sector and 83 pc of these in agriculture and allied activities like dairy, animal husbandry, sericulture, handloom, handcrafts and forestry. Banks should do something to improve their access to credit which they require.

· Customer Awareness

There is a want to educate the customers on bank products. hard work should be made to extend and make deeper the process of information flow for the profit and education of Indian customers. The rural customers are not aware for what purpose the loans are available and how they can be availed. Customers do not know the whole rules, regulations and procedures of the bank and bankers safeguard them for themselves and do not take interest in educating the customers. It is a need to educate the customers from the grassroots of banking. It is time that each bank branch takes ladder to educate the customers on all banking role which will facilitate growth of banking on healthy

lines both qualitatively and quantitatively.

· Informing Customers About Products

The bank should embark upon aggressive marketing of its products, particularly at the time of launching a new product, which will inform the perspective customers regarding product and at the same time relieve staff at branch level from explaining the product to all customers.

· Customer Convenience

In a service industry like banking where product differential is hard to maintain and quality of service depends upon the service provider, from whom it cannot be separated. So the bank employees have to render services to the satisfaction of the customer, not as per their own conveniences or whims.

· Re-orient Staff

Sincerity of efforts in implementation of the measures is lacking among the bank staff. It is a fact that its employees are not able to rise up to the expectations of its customers.

They lack in their behaviour, attitude and efficiency. The phenomenon is glaring at urban centers. Therefore, it calls for an immediate attention which is missing link in the entire process of marketing, and the bank should undertake all such steps to motivate and reorient its staff.

· Sale of Products and Services through E-delivery Channels

After the Information Technology Act, many new e-delivery products have been introduced. These edelivery channels are very helpful in enhancing the marketing ofvarious products and services. Thus Indian banks should sale the products and services through e-delivery channels.

· Sale of Products and Services through Web-sites

Internet is a network of network which connects the world. Thus, banks should sale their products through web-site. This will enhance the marketing of the products not only at the national but also at the international level.

RURAL PSYCHOLOGY AND BANK MARKETING :

Banks have a big responsibility to play in the progress of rural areas and improvement in rural life. In order to play this role successfully, the banker should have fair knowledge of the socio-psychological aspects of the rural society he is serving. First of all, the banker have to be aware of the "Human Groups and Institutions" in the part of operation. This means that one should be aware of the role of agriculture in the rural economy, cultural aspect of the society, community aspects, family and farm patterns, institutional facilities, etc.  Secondly, the ‘Process of Change’, if any, taking place in the rural situation, must be known to him. The common changes that take place in the rural situation include urbanization, industrialisation, migration, social mobility, changes in values, farm structure, etc. Thirdly, there might be ‘Planned Changes’, generally emanating from administration of voluntary organisations, such as resettlement, land reforms, community development, agricultural extension work, education etc, of which the pitch staff should be familiar.

Fourthly, a common idea of the status of different development projects under execution, welfare measures, schemes under implementation, etc. will assist the banker to contain a entire picture of the rural society in which he is operating. The facts on all these aspects of the rural society will help the banker in choosing the right approach to the clients in rural areas while education of the people on the services accessible is an integral part of effective marketing.  The psychology of the urban persons should be appropriately understood. It is only common that the citizens in rural areas do not accept a tradition immediately. In fact, the tendency of an uneducated human being is to disbelieve the same. The banking habits are no exclusion to this. But consequently, on being well educated, he may build up attention and would like to know more about. If the information imparted convinces him that the thought is rather useful, he enters the third stage of thinking about the opportunity of accepting the proposal for his benefit. Thus, there are different stages in the "adoption process" of the rural persons, which should be undoubtedly understood by the field persons.

The cultural pattern of the rural people influences their economic manners significantly. Some urban communities might have a "modern pattern" of culture. These communities would be ever ready to try something original if they are sure that it can improve their current situation. distribution of information on bank’s services become simple and the results are achieved at a faster speed with such groups. On the other hand, groups characterised by "traditional pattern" of culture are normally opposed to change. Their most important concern will be to save what has been the custom and resists interference in to their ways of living. Effective marketing becomes complicated while dealing with such groups.  Members of the group with a new guide of culture be likely to be individualistic, while arrangement of social control will be more in groups with traditional model. In such groups, where tradition is emphasised, a far accomplishment change in approach towards anything, especially banking behaviour can be bring about only with the support of their "Clan Leaders".

The clan privileged are the people whom the rest of the community will pay attention to , explicit or otherwise, the people look ahead for accepting anything new Success in approaching such rural societies definitely lies in considerate the rural psychology in this regard and identifying such influential individuals from the rural masses..

Changes are taking place in fashionable rural society, although at a slower pace. The elements of dynamism of stability is ongoing in the rural environment, in the case of metropolitan areas, though not functioning in identical degrees or patterns. The changes, however, have been normally confined to changes in the agricultural pattern, community aspects and some general changes in the economic situation. These changes, however, produce scope for institutional services in a variety of segments of the rural economy’s operation and the banking institutions should capitalise on the similar through deep saturation into rural households. This can be made achievable only if the bank’s personnel are attentive of the changes taking place in the rural environment and design their approach to the state in a skillful manner. Modifying the services to go well with the dynamic environment is measured as the backbone of marketing efforts. However, while designing or modifying, it should be ensured that the products are not inconsistent with basic attitudes and cultural values of the people. Rapidity of taking of innovations is a utility of a lot of factors, including the nature of innovation and its bond to existing cultural patterns.

Banking institutions are vehicles of economic growth. According to Rostow, economic theories and development concepts should be linked to sociological and psychological elements, if it is to be maximally valuable. Marketing efforts in the urban areas should be considered with appropriate emphasis on these important factors.

FASHION

Fashion is a general term for a popular style or practice, especially in clothing, footwear, accessories, makeup, body piercing, or furniture. Fashion refers to a distinctive and often habitual trend in the style with which a person dresses, as well as to prevailing styles in behaviour.

Fashion also refers to the newest creations of textile designers. [1] The more technical term, costume, has become so linked to the term "fashion" that the use of the former has been relegated to special senses like fancy dress or masquerade wear, while "fashion" means clothing more generally and the study of it. Although aspects of fashion can be feminine or masculine, some trends are androgynous

Fashion Industry

The fashion industry is a product of the modern age. Prior to the mid-19th century, most clothing was custom made. It was handmade for individuals, either as home production or on order from dressmakers and tailors. By the beginning of the 20th century—with the rise of new technologies such as the sewing machine, the rise of global capitalism and the development of the factory system of production, and the proliferation of retail outlets such as department stores—clothing had increasingly come to be mass-produced in standard sizes and sold at fixed prices. Although the fashion industry developed first in Europe and America, today it is an international and highly globalized industry, with clothing often designed in one country, manufactured in another, and sold world-wide. For example, an American fashion company might source fabric in China and have the clothes manufactured in Vietnam, finished in Italy, and shipped to a warehouse in the United States for distribution to retail outlets internationally. The fashion industry has long been one of the largest employers in the United States, and it remains so in the 21st century. However, employment declined considerably as production increasingly moved overseas, especially to China. Because data on the fashion industry typically are reported for national economies and expressed in terms of the industry’s many separate sectors, aggregate figures for world production of textiles and clothing are difficult to obtain. However, by any measure, the industry accounts for a significant share of world economic output.

The fashion industry consists of four levels: the production of raw materials, principally fibres and textiles but also leather and fur; the production of fashion goods by designers, manufacturers, contractors, and others; retail sales; and various forms of advertising and promotion. These levels consist of many separate but interdependent sectors, all of which are devoted to the goal of satisfying consumer demand for apparel under conditions that enable participants in the industry to operate at a profit.

History

A market is a place for buying and selling, for exchanging goods and services, usually for money. The fashion market is unusual because until early in the twentieth century it was almost solely the domain of kings, queens, aristocrats and other important people. As will be seen, great changes, mainly due to technology and increasing glo-balization, mean that we now have a fashion marketplace open to everyone. Fashion can be a reflection of the time, from the utilitarian clothing of the war years to the yuppie look of the buoyant 1980s. Fashion also can be a reflection of individuals. Clothes are often chosen to reflect among other factors our age, gender, lifestyle and personality. Because fashion is both a reflective and yet creative discipline, it is necessary for fashion marketers to be aware of the factors surround-ing the market and develop a broad understanding of the issues that can affect the garments that are seen in any high street store.

 The development of the fashion market

 Origins of the modern fashion market

Until relatively recently, fashion had always been élitist and was usedby its adopters to show that they were above the common people.Even the inventions of the eighteenth and nineteenth centuries; thespinning jenny, the water frame and the sewing machine have nothad as great an effect on the market as have cultural changes andthe explosion of the media during the twentieth centur

 Market Response to Fashion Demand

This module will enable the student to comprehend the supply side of the fashion value chain business. It covers the activities of diverse economic agents engaged in supply such as product, raw materials producers, distributors, warehousers, retailers and service agents. IT systems a fashion business. The aim of the module is to facilitate the student to comprehend the complete back end of the fashion business value chain comprising raw material sources, fabricators, producers, vendors, distributors, transporters, inventory controllers,

Strategic Fashion Marketing

This module will enable students to know the concept of strategy as applied to the fashion business and its marketing function. Specifically, the aim of the module is to facilitate students: To conceptually understand strategy , types of strategy, its determinants and how it is formulated for fashion business To comprehend strategic intent, planning and inter connectedness of fashion-organization strategy with fashion marketing strategy To develop skill of formulating marketing strategy for a chosen fashion business case

designers, exporters, retailers etc.