Economic Environment and marketing in India

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Economic Environment and marketing in India

The emphasis in this assignment is the economic environment and marketing. In the article, “India’s macroeconomic environment remains challenging “there is a clear discussion about the subject. To start with, there exists the fact that the recession is an external factor that affects in a great proportion the market, as well as marketing of a product. For instance, the changes that take place financially due to the recession has a huge economic set back towards a business. The recent recession that took place in 2008-2009 affected marketing in the retail industry of India. The recession played a big role in raising the rate of unemployment as workers were forced to put up with massive wage cuts and other negative setbacks of the recession.

The basic growth indicators that are found in the Indian economy have all been showing signs that point towards a stable macro economy. According to the writer, the macroeconomic environment is still challenging with respect to inflation that has hit the market from time to time. In the real sense, the government should step into the picture and ensure that businesses that are struggling as a result of recession, as well as inflation, are boosted through grants as well as loans that will ensure that they remain in the highly competitive market situation of India.

Another major and crucial economic influence towards a business is the level of competition that talks place in the market. Almost all sectors of Indian economy are going through acute competition from other avenues. For instance, there are foreign companies that are setting shop in the market, and whose wares and products are cheaper in price. However, there is no guarantee that the cheap products are quality or fit for the utilization of the public. In this case also, the government should also play part in ensuring that the local businesses are safe from the foreign influence. Taxes and tariffs towards the foreign businesses should be applied in a proportion that encourages local businesses.

Though the business environment remains challenging, there is existing data that points towards growth indicators characterized with stabilization. This is reflected by the persistent high rates of inflation, high credit deposit ratio as well as elevated trade deficit. However, all these should be controlled by the market players themselves. They have the option to regulate prices themselves in a manner that might suppress inflation. This way, the high rate of inflation will be lower, and instances such as the recession that took place several years ago will not affect the market in a major way.

The integration of marketing methods that apply technology in this market can be a tedious activity. This is one among numerous issues that players in the Indian market should take into consideration. The technological integration plan is a plan or model that can be used to assist traders to plan for effective marketing strategies if at all they want to use technology. The writer opines that the process of employing technology into business should be applied in phases to avoid confusion in the process.

Finally, there are vital conditions that have to be present in order to balance the economy and avoid the regular occurrence of inflation. In this approach, the economic environment will only influence the market in a positive way. At the same time, there will also be a good co-existence between the two, the market, and the economic environment.

Work Cited

Morgan, Stanley. “India’s macroeconomic environment remains challenging.” The Economic

Times, 2012.