Rural Marketing 5

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1.RURAL MARKETING SCENARIO

2. COMPOSITION OF CONSUMER

GOODS

3. RELEVENCE OF PRODUCT, PRICE,

PLACE AND PROMOTION IN RURALMARKET

4. THE ROLE OF ADVERTISING


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India with population of above 200 million isthe words second largest fast growingmarket.

India s growing market is not only by virtueof its population but also on account of

Unsatisfied demand for consumer product

Rising income Changing attitudes & life styles

The communication revolution


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Two sides of rural markets

Immense opportunities

Intimidating challenges


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Now rural consumers constitute a bigpotential market for consumer goods.

The investment pattern is changing frombuying gold to buying tractors, implements &pump sets.

The rich farmers buy all possible modern

amenities.

With the speed of literacy, more schools &more rural people getting educated & the

usage of consumer goods is bound to increase


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1. RURAL INCOME2. EDUCATION

3. LACK OF SAVINGS HABIT

4. IRREGULAR DEMAND


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Consumer goods are divided as durablegoods and non durable goods.

Durable goods Bicycles, electric iron,

Table, chairs, fansCookers, Stove, Grinders

Refrigerators, Washing

machines , TV, Harvesters,Pump sets, 4 wheelers etc


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Non durable goods Washing powders, bathsoaps, Shampoo, shaving

creams,Tea, coffee

Face powder, Bindi,Cosmetics, Comb,

Bangles, Nail polish

paper, magazines,

Dress materials, Bulbs

medicines, tooth brushetc


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Category Estimated annual size(Rs crore)

FMCG 65000

FMCD 5000

Agri inputs 45000

2/4 wheelers 8000

Total 123000


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STP+ 4PS=MARKETING STRATEGY

S- SEGMENTATION

T-TARGETING

P- POSITIONING

P- PRODUCT

P-PRICE

P-PLACE

P-PROMOTION


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PRODUCT----- Product design, features, brand

name, models, styles,appearance

Product quality

Warranty

Package: design, material, size,

labeling etc.

PLACE--------- Cannels of distribution: Design,location of intermediaries,location of outlets,

Channel remuneration,

Dealer- principal relations etc


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Physical distribution:Transportations, warehousing,

Order processing etc

PRICE-------------1. Pricing policies, margins,discounts, & rebates.

2. Terms of delivery, paymentterms , credit terms

purchase facilities, resale

price maintenance


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PROMOTION----------- 1. Personal selling:

selling expertise, Size& quality of sales

force, etc.

2. Advertising:

Media mix, vehicles,

programmes.3. Sales promotion:

Gifts, price offs,coupons, contests,prizes etc

4. Publicity & publicrelation


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Smaller packages, low valuegoods

Change the product attributes Modernize & redesign the

products to satisfy rural buyers

Economy products

Keep adequate stocks


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Sell at lower price or at sameprice as in the urban market

Reduce price by modifying

attributes like package, size,packing etc.

Ensure loyalty of consumers

Work on minimum possibleprofit margin.


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Product should made available atconvenient places.

Hawker method is preferred in

absence of agents to sell daily torural people.

The bigger companies can arrange

for better sales distribution in therural sector


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It is a backup function for salesforce.

Promotion strategy consists of

advertising, sales promotion,public relation, publicity&personal selling.

One of the very popular schemes inthe rural areas is buy 2 soap cakes& get one free


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INTRODUCTION

OPENION LEADERS

LANGUAGE

ADVERTISING A NECESSITY


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Mass media gap in India is asconspicuous as the income gap

Extra basic infrastructure Is needed to

reach mass population. Press, cinema, demonstration vans,

puppet shows & theaters may be used

to convey product massage persuasion by the opinion makers

also counts


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Word of mouth is a powerfulmedium.

Panchayats can be a usefulinstruments of mass changes inconsumer habits

Opinion leaders generateconfidence in the slower & lateradopters.

There is a need to advertise inlocal languages


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Advertising not necessarily creates demandfor products in rural market.

Other factors like environmental conditions,

price cuts, quality changes, raising incomealso creates demand.

There is a need to divert some resources fromadvertising to market research.

Our rural marketers should keep an eye onimport substitution & upgrade raw materialson the basis of research.


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Documents

Rural Marketing 5