Rural Market Segmentation

PRESENTED BY HARSHAL M. PANDAV MBA 4-SEM (MB11018)

Introduction
Market:
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange.
Market is a place where Selling & Buying takes place

Market is the process by which the prices of goods and services are established.

Rural Market
Rural markets have emerged as an important growth engine in the Indian consumption story.
With about 70 per cent of the Indian population residing in the rural part of the country, rural markets seem to be a significant opportunity for business corporation.

Segment
The divisions found in the internal section.
Market segment, the smaller subgroups comprising a market

Market Segmentation
The process of defining and subdividing a large homogenous market into

clearly identifiable segments having similar needs, wants, or demand characteristics.

Rural market segmentation is mainly based on demographic factors. The division is based on the premises, the different people have different

preferences. The following are the basic market preferences:

Homogeneous preferences where consumers have roughly the same preferences. Diffused preferences where consumers are scattered throughout the market by their preferences.

Clustered preferences where consumers are found in distinct preference groups.

The STP Process

Marketing Decision
Segmenting

Marketing Actions to be Undertaken

Identify Various bases for Market Segmentation. Identifying and developing profiles of market segments.

Target

Evaluating Market attractiveness.

Segment

for

their

Deciding the market coverage strategy

Positioning

Identifying, Selecting the possible competitive advantage of the Brand/Product.

Communicating the chosen advantages to the Customer. competitive

Basis & Approaches to Segmentation

Segmentation Criteria Geographic Relevant Variables / Indicators Region Village Size and density Climate Age Gender Income Education Occupation Religion Lifestyle Personality Social Occasions Benefits sought Loyalty Status Usage rate

Demographic

Psychographics

Behavioral

Process of Market Segmentation

Identify Needs

Estimate Demand

Identify Characteristics

Market Segmentation Process

8

Degree of segmentation
The segmentation is considered as a process with two polar points from zero to complete, four distinct segment approaches are identifiable as follows.
Zero Type Mass marketing Considers all people as a bunch Segment marketing Identitys people as a differing group Niche marketing Micro marketing

Approach

Serves very few Focus on groups of individuals people or very small groups

Benefits of Market Segmentation

Customers with similar characteristics can be focused.

wants,

needs

and

It is easy to design promotional activities for a specific segment. By targeting a specific segment, much investment can be saved. It is easy to manage a specific segment of market.
10

Thank You
Any Questions & Suggestions