1.

RURAL MARKETING SCENARIO

2. COMPOSITION OF CONSUMER
GOODS
3. RELEVENCE OF PRODUCT, PRICE,
PLACE AND PROMOTION IN RURAL
MARKET
4. THE ROLE OF ADVERTISING

India with population of above 200 million is

the words second largest fast growing
market.
India s growing market is not only by virtue
of its population but also on account of
Unsatisfied demand for consumer product
Rising income
Changing attitudes & life styles
The communication revolution

Two sides of rural markets

Immense opportunities
Intimidating challenges

Now rural consumers constitute a big

potential market for consumer goods.
The investment pattern is changing from
buying 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

1.
2.
3.

4.

RURAL INCOME
EDUCATION
LACK OF SAVINGS HABIT
IRREGULAR DEMAND

Consumer goods are divided as durable

goods and non durable goods.
Durable goods Bicycles, electric iron,
Table, chairs, fans
Cookers, Stove, Grinders
Refrigerators, Washing
machines , TV, Harvesters,
Pump sets, 4 wheelers etc

Non durable goods Washing powders, bath

soaps, Shampoo, shaving
creams,
Tea, coffee
Face powder, Bindi,
Cosmetics, Comb,
Bangles, Nail polish
paper, magazines,
Dress materials, Bulbs
medicines, tooth brush
etc

Category

Estimated annual size(Rs crore)

FMCG

65000

FMCD

5000

Agri inputs

45000

2/4 wheelers

8000

Total

123000

STP+ 4PS=MARKETING STRATEGY

S- SEGMENTATION
T-TARGETING
P- POSITIONING
P- PRODUCT
P-PRICE
P-PLACE
P-PROMOTION

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

Physical distribution:
Transportations, warehousing,
Order processing etc
PRICE-------------1. Pricing policies, margins,
discounts, & rebates.
2. Terms of delivery, payment
terms, credit terms
purchase facilities, resale
price maintenance

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 & public
relation

Smaller packages, low value

goods
Change the product attributes
Modernize & redesign the
products to satisfy rural buyers
Economy products
Keep adequate stocks

Sell at lower price or at same

price as in the urban market
Reduce price by modifying
attributes like package, size,
packing etc.
Ensure loyalty of consumers
Work on minimum possible
profit margin.

Product should made available at

convenient places.
Hawker method is preferred in
absence of agents to sell daily to
rural people.
The bigger companies can arrange
for better sales distribution in the
rural sector

It is a backup function for sales

force.
Promotion strategy consists of
advertising, sales promotion,
public relation, publicity&
personal selling.
One of the very popular schemes in
the rural areas is buy 2 soap cakes
& get one free

INTRODUCTION
OPENION LEADERS
LANGUAGE
ADVERTISING A NECESSITY

Mass media gap in India is as

conspicuous 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

Word of mouth is a powerful

medium.
Panchayats can be a useful
instruments of mass changes in
consumer habits
Opinion leaders generate
confidence in the slower & later
adopters.
There is a need to advertise in
local languages

Advertising not necessarily creates demand

for products in rural market.
Other factors like environmental conditions,
price cuts, quality changes, raising income
also creates demand.
There is a need to divert some resources from
advertising to market research.
Our rural marketers should keep an eye on
import substitution & upgrade raw materials
on the basis of research.