9) Rural Marketing

Rural Consumer : 

Rural Consumer Developed by MET CET Prof. Naik 20/03/2010

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More than 638667 villages 597 districts 700 million people Myriad of languages Many traditions and a rich culture Rural Consumer Introduction Developed by MET CET Prof. Naik 20/03/2010

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To meet the wants and needs of select consumers important to understand the consumer behaviour Behaviour guides and directs the entire set of activities that constitutes the marketing program Rural Consumer Introduction Developed by MET CET Prof. Naik 20/03/2010

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Consumer behaviour is influenced by various factors Income Occupation Education Lifestyle Geographical Location Rural Consumer Introduction Developed by MET CET Prof. Naik 20/03/2010

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What are the characteristics of Rural Consumer Introduction Developed by MET CET Rural Consumers Prof. Naik 20/03/2010

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Age and Stage of the Life Cycle The purchase of products and services and their forms and nature is influenced by age and life-cycle stages of consumer Direction to the estimation of demand, segmentation, targeting of markets and product- mix decision Rural Consumer Characteristics Developed by MET CET Prof. Naik 20/03/2010

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Occupation and Income The influence of the amount of purchase of products and services by occupation and income of individual is very high Consumer behaviour is also guided by working status of the earning member of the family., especially the head of the household, as major purchase decisions are made by them. Rural Consumer Characteristics Developed by MET CET Prof. Naik 20/03/2010

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Occupation and Income The occupation profile of owners of three key durables indicate that non- agricultural occupation groups are high- consumption segments and is growing rapidly, reducing dependence on agriculture Rural Consumer Characteristics Developed by MET CET Prof. Naik 20/03/2010

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Economic Circumstances The purchasing power plays an important role in choice of products Dictated by disposable income, savings and debts, credit worthiness and attitude towards spending and savings Saving habits Rural Consumer Characteristics Developed by MET CET Prof. Naik 20/03/2010

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Lifestyle Deals with everyday behaviourally oriented facets of consumers, as well as their values, feelings, attitudes, interests and opinions Typical Lifestyle Dimensions: Rural Consumer Characteristics Developed by MET CET Prof. Naik 20/03/2010

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Lifestyle There is a change in lifestyles of Rural Consumers Attributed Factors: Growth in income and change in income distribution Growth in level of Education Changing work patterns Enlarged media reach Growing interaction with urban communities Market’s efforts to reach out the rural market Rural Consumer Characteristics Developed by MET CET Prof. Naik 20/03/2010

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Lifestyle Five category classification of lifestyle patterns by NCAER on basis of ‘value of the product’, reflecting economic well-being of households Rural Consumer Characteristics Developed by MET CET Prof. Naik 20/03/2010

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Perception and Brand belief Directly related to the level of acceptance and satisfaction of the consumer’s present way of life and the role played by existing products in that life. Quality and Value are integral attributes to new product Related to the improvement they bring to their life in terms of productivity and prices Rural Consumer Characteristics Developed by MET CET Prof. Naik New Brand/ Product Old Brand/ Product Quality Value Price 20/03/2010

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Perception and Brand belief For low involvement FMG’s Known sources such as retailer- strong spokes person For high involvement products Outlet away from the rural environments Retailers closely identified with the brand Rural Consumer Characteristics Developed by MET CET Prof. Naik 20/03/2010

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Pre-purchase Evaluation Rural Consumer Characteristics Developed by MET CET Prof. Naik The consumer does pre- purchase search of products May visit various places like haats, mandis, showrooms, retail outlets Recognizes needs and makes purchase accordingly Picking up the best alternative Comparison with the product currently in use Need Recognition Pre- purchase search Evaluation of alternatives 20/03/2010

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Rise of Consumerism The growing no. of rural people working in urban India The migrated village folk exposed to urban life The rural consumer’s readiness to buy products that he does not view as basic necessities or as essential to everyday life Rural Consumer Characteristics Developed by MET CET Prof. Naik 20/03/2010

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Rise of Consumerism Shift in types of products purchased and consumed Rural Consumer Characteristics Developed by MET CET Prof. Naik Loose unbranded tea Home made sweets Open vessel wood fire cooking Cycle Earthen vessel for cool water Sharbat, Nimbu paani Packaged unbranded tea Branded biscuits Pressure cooker cooking on LPG Motorcycle Refrigerator for cool water Aerated drinks 20/03/2010

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Rise of Consumerism The rise of consumerism is what makes a market as large as rural India the most promising market Rural Consumer Characteristics Developed by MET CET Prof. Naik 20/03/2010