Rural Marketing in Terms of Stp

8/2/2019 Rural Marketing in Terms of Stp

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RURAL MARKETING IN

TERMS OF STPPresented By-

Akanksha

AnjumKavya

Kamaldeep

SalmaVivek


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Contents

Introduction about rural marketing- Salma

Strategies of rural marketing- Anjum

Segmentation and degree of segm. - Kavya Types of segmentation- Akanksha

Targeting- Vivek

Positioning- Kamal


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Rural Marketing

Rural Marketing is defined as any marketing

activity in which one dominant participant is

from a rural area.

Rural marketing consists of marketing of

inputs (products or services) to the rural as

well as marketing of outputs from the rural

markets to other geographical areas.


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Major Areas of Concern in the Rural

Marketing Sector

Government should assume a more dynamic role in the field ofagricultural marketing that of a strong buffer between global forces and

local needs.

Emphasize value addition by giving a thrust to agro-processing

industries at farm level so that the benefit of value addition is transferredto the producer.

There is a need for professionalizing agricultural marketing as a subject

of great practical application.

Creation of an effective market intelligence network, right from theimporter in the global market to the producer in the remote corner of the

rural India.

Decentralization in the marketing system.


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Economic incentives should be offered to the farmers to encourage them

during low economic conditions.

A design frame work for information technology based AgriculturalMarketing Network is essential.

Regular surveys and analytical studies on agricultural marketing should

be conducted, so that appropriate policy adjustments and refinements

whenever necessary.

To introduce social marketing for bringing about a change in the

behavior and attitude through social advertising and social

communication. Some fertilizer companies and commercial banks are

taking up Village Adoption Programmer under the social marketing.

Institutional linkages should be emphasized upon to integrate themarkets, for easy movement of goods and also to facilitate the inter-state

trade.


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Strategies of Rural Marketing

1. Product Strategies-

Small unit and low priced packing: Larger pack sizes are out of reach

for rural consumers because of their price and usage habits. E.g.

shampoos, biscuits, pickles etc.

New product designs: Household items indicates the importance ofredesigning or modifying the products.

Sturdy products: Sturdiness of a product either in terms of weight or

appearance is an important fact for rural consumers to rough handlingand storage.

Brand name: A brand name and/or logo is very essential for rural

consumers for it can be easily remembered.


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2. Pricing strategies- Low cost/cheap products: This is a common strategy being

adopted widely by many manufacturing and marketing men. Pricecan be kept low by small unit packing's.

Avoid sophisticated packing: Simple package can be adoptedwhich can bring down the cost as.

Refill packs/reusable packaging: By such technology also theprice can be reduced. Packaging material used should preferablylend itself for reuse in rural areas.

Application of value engineering: This is a technique whichcan be tried to evolve cheaper products by substituting the costlyraw material with the cheaper one, without sacrificing the quality orfunctional efficiency of the product


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3. Distribution strategies-

The characteristics of the product, its shelf life and other factors have to

be kept in mind.

Distribution strategies that are specifically designed for rural areas are:

i. Through co-operative societies.

ii. Public distribution system.

iii. Multi-purpose distribution centers.

iv. Distribution up to feeder markets/ mandi towns/hat/melas.

v. Agricultural input dealers etc.

Most manufacturers and marketing men do have a distributionarrangement for village with a population of at least 5000 people.


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4. Promotion strategies-

Mass media is a powerful medium of communication. It could betelevision, cinema, print media, radio and so on.

The other means of mass media available are hoardings/wallpaintings, shanties/hats/melas, non-price competition, specialcampaigns etc.

Related to agricultural and other rural industries products, the

government should circulate pamphlets either to panchayati rajoffice or to schools where it can be documented for the reference.


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5. Branding strategy

Rural Product Development: products have to be specifically

developed to meet the needs of rural markets.

Rural Branding: rural branding is to research and gain insight

into the working of rural markets. Based on thiscommunication campaigns have to be developed with a lot of

rural sensitivity.

Rural Communication Campaigns: Communication for

rural markets calls for a different kind of outlook. There must

be a strong accent on helping the target relate to the message.

Rural Events:One of the best ways to capture the attention of

the audience is through Event-management.


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Rural DM Campaigns:Direct Marketing (DM) is one of the

most powerful way to meet the target on their turf and build

product awareness as well as promotion.

Database Creation & Management: Marketing, branding

and promotional activities in the rural context can be highly

effective and thereafter have to create a database of prospects.


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Segmentation

Segmentation is dividing the heterogeneousmarket into sub- markets Heterogeneity.

Geographic

Demographic

Psychographic

Behavioral


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Degrees of segmentation1. Mass marketing:

Most marketers used this in rural markets. All consumers being treated the same.

company could target maximum no. of consumers.

First step in marketing-less market knowledge.

e.g. Colgate Palmolive successfully marketed same toothpaste to all

consumers in urban and rural market. They introduced Cibacawhen the rural market became more demanding.


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2. Segment marketing:

Identifies customers as different groups.

e.g.

Britannia introduced smaller pack sizes of Tiger biscuits in

1998,Rs4,Rs 2,Rs 1 pack.


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3. Niche marketing:

Serves selectively one or a few customer groups.

Niche marketing is used when there is a small group with

specific need .Our rural market is not matured to this level.

E.g.

Hero Honda bikes, Nokia mobiles


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Types of segmentation

Geographic Segmentation Village Population and Density size of population-a major factor that

determines the overall potential demand for a product/service.

Class I-population over 5000.

Class II-population between 1000-5000

Class III-population less than 1000

The following are some examples of geographic variables often used insegmentation.

Climate -Climatic conditions play an important role. According toweather patterns common to certain geographic regions.


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Region: by continent, country, state, or even neighborhood.

Size of metropolitan area: segmented according to size of

population.

Population density: often classified as urban, suburban, or

rural.

Culture -society and culture provide insights into the attitudes

of people and their needs.


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Demographic Segmentation

Some demographic segmentation variables include:

Age

Gender

Family size

Family lifecycle

Generation: baby-boomers, Generation X, etc.

Income

Occupation

Education

Ethnicity

Nationality

Religion

Social class


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1.Age and Life Cycle:

Pre Independence

Pain of Nation Building(Post Independence) Pain of Liberalization(1985 onwards)

Liberalization Children( 1990 onwards)

Millennium Children( 1997 Onwards)

Marketers target the age group of 8 -15,exposed to urbanmarkets.

2.Family Structure:

Joint family and large families still predominate.

Increase in family size-increase in consumption.

Also leads to multi brand consumption.

Increasing nuclear families-greater demand of products, esp.

consumer durables like TV, cooker, LPG connection.


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3. Occupation

Farm based occupations.

Cultivators: farm owners, marginal farmers.

Agri and non agri labor.

Poultry, dairy

Salary earners: doctors, teachers. Traders, micro entrepreneurs.

4. Income

Income is seasonal( post harvest for farmers)or

Weekly/daily( Wage Earners) .

Multiple sources of income( agriculture, dairy etc).

Agricultural income is not taxable.


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Psychographic Segmentation

Psychographic Segmentationseeks to identify and group consumers onthe basis of socioeconomic classification, lifestyle and personality.

Some people are innovators who possess a high self esteem and their

purchase habits reflect their taste for niche-oriented goods and services.

On the other hand, people who belong to the thinker category choose

and buy products by assessing their functionality and durability.

Some psychographic variables include:

Activities

Interests

Opinions

Attitudes

Values


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Behavioralistic Segmentation

Behavioral segmentation is based on actual customer behavior toward

products. Some behavioralistic variables include:Benefits sought

Usage rate

Brand loyalty

User status: potential, first-time, regular, etc.

Readiness to buy

Occasions: holidays and events that stimulate purchases

Behavioral segmentation has the advantage of using variables that areclosely related to the product itself. It is a fairly direct starting point formarket segmentation.


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Targeting

Targeting involves evaluating each marketsegments attractiveness.

Selecting any one or more segments to enter.

Evaluation of segment.

Selection of segment.

Coverage of segment.


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Steps of Targeting

Step1- Evaluation of segments

Profitability of segment

Attractiveness of segment

Growth rate of segment

Companies objectives

Limitations of segment


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Step 2- Selection of segment

Selection of segment can be made by rating the alternativesegment on a predetermined scale in respect of 5 aspects given

above.

The segment may be ranked based on the scores obtained andbe considered for selection.

Those with the high scores will be accepted and the others will

be kept aside for future consideration.


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Step 3-Coverage of the segment

Organization has 3 alternative coverage strategies to suit theirsegmentation approaches.

They are:

Undifferentiated marketing strategy

Differentiated marketing strategy

Concentrated marketing strategy


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Positioning

The art and science of fitting the products or services to one or

more segments of the broad market in such a way as to set it

meaningfully apart from competition.

Monitoring the position.

Determining competitors position.

Making the positioning decision.


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Brand positioning

In the process of branding, the aspect of brand activation at

ATL (above the level) and BTL (below the level) makes a vital

contribution for the marketing journey.

Good branding strikes a chord with viewers help them relate

with the product and reflect their aspirations.

To attain a safe platform in Brand activation, the Marketing

Managers pay attention and focus in a diligent manner on the

value based credentials of the users in the Marketing arena.


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Brand positioning


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There are seven C's steps for brand

positioning

1. Capacitate

2. Cabochon

3. Caesarism4. Cameraderic

5. Calibre

6. Clincher

7. Catagorize


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1. Capacitate: Understand the company history, its products, top

management's objectives their view of the market and theircommitment to branding.

2. Cabochon: Our brand is the achievable, differentiating,

compelling, attractable, and for long run.

3. Caesarism: Caesarism literally means the creative and uniquethought, ideas and actions in a catchy manner to penetrate the

customers' mind regarding the brand of the products in the

selling buying process.

4. Cameraderic: By learning from environment be strongenough to make changes as needed, yet have the faith and

courage to be patient and let your marketing programs build

your brand.


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5. Calibre: Obtain feedback by setting up a response analysis

system for individual media, as well as tracking system tomeasure effectiveness of marketing investments where they

are best tested in the market.

6.Clincher: Incorporate consistency in media scheduling,

adequacy of spending levels and extend brand message across

products and campaigns.

7.Catagorize: The company's should outline very exact

specifications of what they hope to accomplish. The company

has to invest often in emerging technologies and services

simply because what all the customers earnestly believe willeventually set a standard


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Documents

Rural Marketing in Terms of Stp