New Issues in Marketing

Globalisation
Fundamentals of International Marketing
When business crosses the borders, it becomes complex
Environmental and Cultural dynamics of global markets
Main Functions in International Marketing
Choosing the basic route
Market Selection and Product Selection
Selection of Distribution Channels
Developing pricing Strategy
International Marketing Strategy
International Marketing Communication
Mastering the procedural complexities
Organisational Adaptations
Handling Business Ethics

Consumerism- Definition
Consumerism, the "social movement
seeking to augment the rights and power
of buyers in relation to sellers," (Kotler,
1972)

It is manifest in new laws, regulations, and
marketing practices, as well as in new
public attitudes toward government and
business.


New Issues in Marketing
Consumerism
Consumerism- Definition
Marketing concept
Consumerism is a social and economic order
that is based on the systematic creation and
fostering of a desire to purchase goods or
services in ever greater amounts.
In economics, consumerism refers to
economic policies placing emphasis on
consumption.
In an abstract sense, it is the belief that the
free choice of consumers should dictate the
economic structure of a society

Consumerism
The movement seeking to protect and
inform consumers by requiring such
practices as honest packaging and
advertising, product guarantees, and
improved safety standards"
or alternatively: "The theory that a
progressively greater consumption of
goods is economically beneficial".

Consumerism
Consumers are disenchanted with the
marketing system.
Symptomatic of consumers' malaise are
complaints about rising prices, demands
for improved products and services,
suggestions for improving the adequacy of
product information, and concern for the
physical environment
Consumerism
Consumerism and Public Policy-when is
Governmental intervention necessary?
What form does Governmental
intervention take?
Consumer movement had its conspicuous
beginning and took up momentum in the
US
1962- JFK and consumer rights
Ralph Nader- Unsafe et any speed
Consumerism in India
Consumerism actually should be, must
be and I hope will be the opportunity of
marketing. This is what we in
marketing have been waiting for
Peter Drucker
Consumerism in India
India is a developing economy.
Not all Indian consumers are well educated.
Consumers are often exploited, misled by
deceptive advertisements, packaging poor
after sales service, adulteration, price
collusion and so on.
Liberalization and competition
Survival of the fittest

Situational Factors
Situational Factors that aided unethical
marketing-
Vastness of the country
Imbalance in income distribution
Backwardness, illiteracy , ignorance
Lack of education and information
Indian consumers get carried away by
clever advertising
Reasons behind the rise
Reasons behind the rise of consumerism in
India-
Imbalance in demand and supply of
commodities----- leading to hoarding, black
marketing, profiteering
Low literacy levels and lack of awareness
of rights encourages businessmen to be
indifferent to consumers

Reasons behind the rise
Reasons behind the rise of consumerism in
India-
Lack of effective competition
Consumerism is still in its infancy
Legal framework is time consuming and
tiresome
Lamentable state of public sector
monopolies

Remedies
Active participation from the business,
Government and consumers.
Business must ensure efficiency in production
and quality of output and must refrain from
Unfair Trade Practices
Government through legislations, statutory
bodies etc prevent exploitation of consumers.
Consumers should assert their rights and
protect themselves from business
malpractices
Consumer protection in India
Marketing concept has to be broadened to
include the societal marketing concept.
TATA Steel
Lifebuoy's Swasthya Chetna
Tata Tea's Jaago Re! campaign

Changes in the attitude of Indian consumers
The attitude of Indian consumers has
undergone a major transformation over the
last few years.
He wants to lead a life full of luxury and
comfort.
He wants to live in present and does not
believe in savings for the future.
He is open to the idea of consumption and a
better lifestyle.
An increase in their income level due to high
rate of industrialization, growth of services
sector and better employment opportunities


Consumer Awareness
Thank You