RURAL & INDUSTRIAL MARKETING (MBM-401)

CT-2 ASSIGNMENT

Submitted To

DEPARTMENT OF MANAGEMENT
STUDIES
TEERTHANKER MAHAVEER
INSTITUTE OF MANAGEMENT AND TECHNOLOGY,
MORADABAD
In Partial Fulfillment of the Requirement of the Degree of
Master of Business Administration (MBA)

SESSION: 2018 - 2020

TEERTHANKER MAHAVEER UNIVERSITY

MORADABAD

Submitted to: Submitted By:

DR. RAJEEV GUPTA SHREYANSH JAIN (TMG1802049)

ASSIGMNMENT

RURAL AND INDUSTRIAL MARKETING

QUES 1 : Explain characteristics of Rural consumers ?

Ans : Rural consumers are mostly dependent on agriculture and were not very literate about
products and services available in the market till some time back. This scenario is slowly changing
due to an increase in literacy and disposable income. Long ago, rural consumers went to a nearby
city to buy branded products and services.

The rural consumers are classified into the following different groups based on their economic
status −

The Affluent Group:

They are mostly cash rich farmers and are very few in number. They have affordable but do not
form a demand base large enough for marketing firms to depend on — wheat farmers of Punjab
and rice merchants of Andhra Pradesh fall in this group.

The Middle Class:

This is one of the largest segments for manufactured goods and is fast expanding — farmers
cultivating sugar cane in UP and Karnataka fall in this category.

The Poor:

This constitutes a huge segment. Their Purchasing power is less, but strength is more. They receive
the grants in various ways from government and reap the benefits of many such schemes and may
move towards the middle class. The farmers of Bihar and Orissa fall under this category.

QUES 2. Write a note on economics of industrial demand.?

Ans : Industrial demand includes the goods and services that are required by all individuals and
organizations that are engaged in the production of other goods and services
Demand for Industrial marketing develops from the ultimate demand for consumer goods and
services. Demand is derived from the choice and likes of consumers.

TYPES OF DEMAND IN INDUSTRIAL MARKETING:

There are principally three types of demands in industrial marketing. They are:

o Derived Demand.
o Joint Demand
o Cross Elasticity of Demand.

o DERIVED DEMAND:

It is the single most important force in the marketing of industrial goods and services.
Demonstrates how changing customer preferences or a changing economy affects business-
to-business markets. Determines whether a need for related products and raw materials
increases or decreases .Essentially, demand -- or lack of demand -- for a product creates or
reduces demand for related products

o JOINT DEMAND : when you need two goods to go together occurs when demand for two
goods is interdependent.

E.g. it is no good having a printer without the ink to go with it. Similarly ink cartridges are no
use without a printer. Another example, could be a razor and razor blades.

• Sometime called as complementary demand.

o CROSS ELASTICITY OF DEMAND :

It is the responsiveness of the sales of one product to a price change of other

Ques 3 : How you will search information for Rural market?

Ans : The marketing information search process is almost the same as for the urban markets as for
the rural markets. It includes:

Personal sources: Family, friends, neighbours

Commercial sources: Advertisements, Salespersons, Dealers, Packages, Displays

Public Sources: Mass media, Consumer rating organizations

Experiments self: Handling the product, experiments, using samples of products like shampoo.

Ques 4. Write a note on Rural Services.?

Ans : Rural service means service in an exchange area outside of a base rate area or generally
outside a special rate area. Rural service provider commenters have provided evidence illustrating
recent increased challenges in securing traditional financing which has resulted in difficulties in
competing successfully in auctions.

Ques 5 : What do you mean by effectiveness of sales force?

Ans : Sales force effectiveness refers to the ability of a company’s sales professionals to “win” at
each stage of the customer’s buying process, and ultimately earn the business on the right terms and
in the right time frame.
Improving sales effectiveness is not just a sales function issue; it’s a company issue, as it requires
deep collaboration between sales and marketing to understand what’s working and not working, and
continuous improvement of the knowledge, messages, skills, and strategies that sales people apply
as they work sales opportunities.
The purpose of ’sales force effectiveness”’ metrics is to measure the performance of a sales force
and of individual salespeople. When analyzing the performance of a salesperson, a number of
metrics can be compared. These can reveal more about the salesperson than can be gauged by his or
her total sales

Sales effectiveness describes a category of technologies and consulting services aimed at helping
companies improve their sales results. Sales force effectiveness (SFE) is driven by the decisions,
processes, systems and programmers that sales leaders are accountable for. By managing SFE
drivers well, sales leaders can build high-quality sales forces that better meet customer needs and
that can significantly increase company revenue and profit