Rural marketing


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Rural marketing:

Rural marketing


Content Rural marketing Significance Characteristics Structure and environment Segmentation Targeting Positioning Product management Distribution channel Problems

Rural marketing:

Rural marketing Process which starts with decisions to produce a farm commodity and it involves all aspects of market structure or system both functional and institutional based on economic consideration and includes pre and post harvest operations assembling, grading, storage, transportation, and distribution.

Significance :

Significance Purchasing power Revolution Unexplored market Company profit


Characteristics Strong culture Low income level Simple life style Money minders Unexplored

Structure and environment:

Structure and environment Demographic Large population Low education Low demand Joint families Daily wage earner Variation in income 2. Physical 3. Economical 4.Social and culture 5. Political Panchayats raj, gram sabha 6. Technological Green and white revolution, NGO movement

Segmentation :

Segmentation Definition of Segmentation Importance of Segmentation Degree of Segmentation Basis of Segmentation

1. Definition of Segmentation:

1. Definition of Segmentation Process of dividing a heterogeneous market into several segments each of which tends to be homogeneous in all significant aspects. Heterogeneity in rural Socio-culture differences i.e. caste base Variation in population Variation in literacy level i. e. Bihar Vs Kerala Variation in income level Family structure

2. Importance of Segmentation:

2. Importance of Segmentation To distinguish one customer profile to another To understand the need of target buyer

3. Degree of Segmentation:

3. Degree of Segmentation Mass marketing i.e. to target the large number of customer e.g. Colgate Segment marketing i.e. to realise the potential of different consumer segments e.g. Colgate's 10 gm sachets Niche marketing i.e. to satisfy specific need of small group e. g. tractor with thresher Micro marketing i.e. to satisfy a particular need e.g. Anmol mustered oil by Dabur for northern area

4. Basis of Segmentation:

4. Basis of Segmentation Geographic Religious i.e. east, west north, south Village size Climate i.e. summer, rainy, winter Culture 2. Demographic Age and life cycle i.e. Childers, teenagers, young adults, elders, seniors Family structure Gender Income Landownership i.e. landlord, rich, small, labor Education House type Occupation Religion Caste

4. Basis of Segmentation:

4. Basis of Segmentation 3. Psychographic Social class Life style i.e. trendsetters, adaptors, traditionalists Personality 4. Behavioral Occasions i.e. festival, mela, haat Benefits User status Loyalty status Place of purchase

Targeting :

Targeting Evaluation Overall attractiveness Company objective and resources 2. Selection i.e. rating the segment Coverage Undifferentiated marketing i.e. what is common among consumers e.g. Thanda Matlab Coca-Cola Differentiated marketing concentrated

Positioning act of developing company’s offering to occupy targeted segment:

Positioning act of developing company’s offering to occupy targeted segment Identifying Selecting Developing Communicating

Product Management:

Product Management Product concept Feature Quality Price Service and offering Classification FMCGs i.e. toothpaste Consumer durables i.e., Mahindra Agriculture goods services

Product Management:

Product Management 3. New product development 4. Product life cycle i.e. introduction, growth, maturity, decline 5. Product mix 6. Packaging To protect To sales appeal

Distribution channel:

Distribution channel Rural Distribution system Wholesalers Retailers Mobile traders Vans Haats 2. Public Distribution system

Channel intermediaries:

Channel intermediaries Retailer Merchant wholesaler Agents and brokers A channel intermediary that sells mainly to customers. An institution that buys goods from manufacturers, takes title to goods, stores them and resells and ships them. Wholesaling intermediaries who facilitate the sale of a product by representing a channel member. 2

Channel functions performed by intermediaries:

Channel functions performed by intermediaries 2 Facilitating function Transactional functions Logistical functions Contacting/promotion Negotiating Risk-taking Researching Financing Physically distributing Storing Sorting

Channels for consumer products:

Channels for consumer products Producer Producer Producer Producer Consumers Consumers Consumers Retailers Retailers Wholesalers Agents or brokers Wholesaler channel Retailer channel Direct channel Agent/broker channel 3 Consumers Retailers Wholesalers

Channels for business-to-business products:

Channels for business-to-business products Producer Producer Producer Producer Industrial user Industrial user Industrial user Industrial user Industrial distributor Industrial distributor Agents or brokers Agents or brokers Agent/broker channel Industrial distributor Direct channel Producer Government buyer Direct channel Agent/broker industrial channel 3

Channel strategy decisions:

Channel strategy decisions Issues that influence channel strategy Producer factors Product factors Market factors Factors affecting channel choice Exclusive distribution Selective distribution Intensive distribution Levels of distribution intensity 5

Market factors:

Market factors 5 Customer profiles Consumer or industrial customer Size of market Geographic location

Product factors:

Product factors 5 Product complexity Product price Product life cycle Product delicacy

Producer factors:

Producer factors 5 Producer resources Number of product lines Desire for channel control

Levels of distribution intensity:

Levels of distribution intensity Intensity level Number of intermediaries Intensive Selective Exclusive Many Several One 5 Objective Achieve mass-market selling. Convenience goods. Work with selected intermediaries. Shopping and some specialty goods. Work with single intermediary. Specialty goods and industrial equipment.

Problems :

Problems Large number of small markets Poor road connectivity Large number of intermediaries Low density of shops Inadequate bank Poor storage system Credit driven market Poor communication

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