Changing trends of marketing in rural marketing

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    Rural marketing

    Rural Markets are defined as those segments ofoverall market of any economy, which are distinctfrom the other types of markets like stockmarket commodity markets or Labor economics.

    Rural Markets constitute an important segment ofoverall economy

    Function that manages all activities involved inassessing stimulating and converting the purchasingpower of rural consumers into effective demand for

    specific product and services to create satisfactionand a better standard of living for achievingorganizational goals

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    Rural Population

    They are homogeneous in nature.

    The Rural population is nearly three times the

    urban.

    The rural India comprises several castes andtribes.

    The literacy rate is growing

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    What Makes Rural Markets

    Attractive? FMCG Rs. 65,000 cr

    Durables Rs. 5,000 cr

    Agri-Inputs (tractors) Rs. 45,000 cr

    2 / 4 Wheelers Rs. 8,000 cr

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    CONT

    In 2001-02, LIC sold 55% of its policiesin rural India.

    20 million Rediffmail sign-ups, 60% are

    from small towns. 50% of transactionsfrom these towns are on Rediff onlineshopping site.

    42 million rural households (HHs) areavailing banking services in comparisonto 27 million urban households

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    Strategies for Improving Marketing within

    Rural Areas

    1.Product strategies

    2.P

    ricing strategies3.Distribution strategies

    4.Promotion strategies

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    1) Product strategy

    Small unit and low priced packing

    Sturdy products

    Brand name

    New product designs

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    2) Pricing strategy

    Low cost/cheap products

    Avoid sophisticated packing

    Refill packs/reusable packaging Application of value engineering

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    3) Distribution strategy

    co-operative societies

    public distribution system

    multi-purpose distribution centre distribution up to feeder markets/mandi

    towns shanties/hat/jathras/melas,

    agricultural input dealers

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    4) Promotion strategy

    It could be television, cinema, print

    media, radio and so on.

    The other means of mass media

    available are hoardings/wall paintings,

    hats/melas, non-price competition,

    special campaigns etc.

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    The other strategies, which include

    are:

    Client and location specific promotion Joint or cooperative promotion

    Bundling of inputs

    Management of demand Developmental marketing

    Unique selling proposition (USP)

    Extension services Business ethics

    Partnership for sustainability

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    Brand Positioning in Rural Markets

    user

    brand

    values

    attributespersonality

    culture benefits

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    Cont

    Word Associations: While using the logo, hoardings

    and exhibits, suitable jargons have to be deployed in the

    word association..

    Personifying the Brand:

    Visual control mechanismplays a vital role in identifying the brands in terms of

    personification.

    Laddering up to find the brand essence: Brand

    essence relates to the deeper, more abstract goals

    consumer and trying to satisfy with the brand.

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    Micro- Finance Microfinance is the provision of financial services to low-

    income clients, including consumers and the self-employed,

    who traditionally lack access to banking and related services.

    Microfinance institutions are engaged in deposit taking in

    order to mobilize household savings, they become financial

    intermediaries.

    Typical microfinance clients are poor and low-income people

    that do not have access to other formal financial institutions.

    Clients because they lack stable cash flows to repay loans.

    MFIs started as not-for-profit organizations like NGOs . Some MFIs provide non-financial products, such as business

    development or health services.

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    CONCLUSION

    Rural marketing will grow in importance in thecoming years.

    Corporate that have understood the psyche of

    rural consumers and markets and how to work

    it have notched up successes. Rural market has an untapped potential like

    rain.

    But is different from the urban market so it

    requires the different marketing strategies andmarketer has to meet the challenges to be

    successful in rural market.

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    Thank you

    Sakshi Chanana

    Esha Wadhwan

    Arpita Deb

    Nakul Bhalla