Marketing Management Chapter 25

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© SHH Kazmi, 2007

Excel BooksMarketing Management Text and Cases, S H H Kazmi25-1

Rural Marketing

Marketing Management Text and Cases

Excel Books25-1

Rural

Marketing

25Chapter



© SHH Kazmi, 2007


Rural Marketing

Marketing principles are the same for rural or urban markets. It is the approach

to applying these principles that requires adjustments according to specific

opportunities and constraints resulting from a host of rural conditions in India

that a marketer faces.



© SHH Kazmi, 2007


Rural Marketing

Socio-Economic ConditionsRural population is culturally heterogeneous. They differ in their religious

beliefs, cultural factors, customs, traditions, social patterns, linguistic factors,

literacy level, and incomes. The major religious groups in rural India include

Hindus,Muslims, Christians, Buddhists, and Sikhs.

The literacy level in rural India is estimated to be about 30 per cent.

Rural consumers are believed to be somewhat more conservative and

tradition-bound than their urban counterpart. However, the increasing levels

of education, over exposure to the media and the free modern city

environment is influencing their lifestyles



© SHH Kazmi, 2007


Rural Marketing

Key Decision Areas in Rural MarketingFour factors determine the demand in rural India:

1. access,

2. attitude,

3. awareness, and

4. affluence.

In general, the following factors need to be taken care of:

Segmentation and targeting

Product planning

Pricing

Distribution

Promotion



© SHH Kazmi, 2007


Rural Marketing

Rural Market Segmentation:

The following variables seem to be relevant to most of the rural areas in India

and can be considered in determining the different market segments:

Geographic location

Population density

Gender, age, occupation, income levels

Socio-cultural considerations

Language and literacy level

Lifestyle, benefits sought

Nearness to an urban area/industrial town



© SHH Kazmi, 2007


Rural Marketing

Product Planning

Companies have to consider whether the existing successful products

available in the urban areas can be marketed in the rural markets without any

modification. It is advisable for companies to first determine what consumers

in the rural markets need and want, and then select products from the

available ones.



© SHH Kazmi, 2007


Rural Marketing

PricingThe rural consumer in general, is price sensitive, or more appropriately, value

conscious. The marketer will have to examine ways to make the product

affordable to a large number of consumers in the rural markets.



© SHH Kazmi, 2007


Rural Marketing

Distribution

Distribution is critical to penetrate rural markets for success.

Those of us who hail from rural areas and others who have had the

opportunity of visiting rural areas in different parts of the country can very wellappreciate the challenges marketers face. The first constraint relates to

aspects of phy sical distribution.

The second set of difficulties relates to the organising of an effective and

efficient distribution c hannel .



© SHH Kazmi, 2007


Rural Marketing

Promotion

Rural marketing poses several problems with regard to various methods

available to the marketers for communicating effectively in different areas of

the country.

Using symbolic association of products or events with deities, movie

heroes, and local folklore heroes etc. can have special significance in

influencing consumer attitudes, awareness, and product recall.



© SHH Kazmi, 2007


Rural Marketing

Personal selling has special significance in the rural markets.First of all,

companies would do better to appoint sales people who hail from the

concerned rural areas because they would be the ones who are completely

familiar and conversant with local conditions including language and culture.

Living or working for such sales people in these areas, and mingling andunderstanding rural customers would not pose any problems. They are more

likely to feel at ease and evoke confidence amongst customers and develop

beneficial relationships.

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Marketing Management Chapter 25