What is meant by Rural Marketing?

Rural marketing is promotion of a company's products in the rural market by using strategies which differs from that of urban market, the rural market is more price sensitive but it has preference for quality. Rural marketing is the process of marketing in rural areas. it includes the adoption of various marketing strategies and policies in rural market with a view to convert the needs and wants of rural people into demand. What is meant by opinion leader? Influential members of a community, group, or society to whom others turn for advice, opinions, and views. Individual whose ideas and behavior serve as a model to others. Opinion leaders communicate messages to a primary group, influencing the attitudes and behavior change of their followers. Therefore, in certain marketing instances, it may be advantageous to direct the communications to the opinion leader alone to speed the acceptance of an advertising message. For example, advertisers may direct a dental floss promotion to influential dentists or a fashion campaign to female celebrities. In both instances, the advertiser is using the opinion leader to carry and "trickle down" its message to influence its target group. Because of the important role opinion leaders play in influencing markets, advertisers have traditionally used them to give testimonials. What is meant by segmentation? Process of defining and sub-dividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment. Few firms are big enough to supply the needs of an entire market, most must breakdown the total demand into segments and choose the one or few the firm is best equipped to handle. Four basic factors that affect market segmentation are (1) clear identification of the segment, (2) measurability of its effective size, (3) its accessibility through promotional efforts, and (4) its appropriateness to the policies and resources of the firm. The four basic market segmentationstrategies are based on (a) behavioral (b) demographic, (c) psychographic, and (d) geographical differences.
What does the term Consumer Behavior mean?

In marketing, understanding how and why consumers behave. An appropriate marketing stimulus is formulated based on customer personality and needs to prompt sales. Consumers adjust behavior to the marketplace based on internal needs and interpersonal factors. it includes Perception, Personality, Values, Beliefs, Attitude

. The products that make the most profit are usually the core products. culture. reason. etc. The central benefit or purpose for which a consumer buys a product or service. Therefore there is emphasis placed on the profitability of core products while working on other products hoping that they will become a competency for the company.Rogers identified five types of purchasers as the product moves through its life cycle stage. Core product the perceived or real core benefit or service to be gained from a product. Core products are also usually the first products that the company created and sustained itself from its founding like Windows OS for Microsoft. purchase the product at the beginning of the life cycle. and retailers). corn. products. etc. A company's core product is the number 1 thing the company sells most of.g. media). Macintosh for Apple Inc. Google Search for Google. The core product varies from purchaser to purchaser. brands. Other products that are not considered core products are called side projects. signs. biscuits are not the core product. but rather additional products..•The psychology of how consumers think. Mention the stages of Innovation-adoption Process? This extension of the product life cycle was developed by Everett M. Innovator who make up 2. Rogers in 1962 and simply looks who adopts products at the different stages of the life cycle. side products and experimental products. He suggested 1. What is meant by core product? Give one example. All the other products such as mash potatoes.5% of all purchases of the product. Core products are central to the company's performance and make the most money that sustain the business.g. .. feel. They are not afraid of trying new products that suit their lifestyle and will also pay a premium for that benefit. and select between different alternatives (e. family. •The psychology of how the consumer is influenced by his or her environment (e. For example Kentucky Fried Chicken's core product is chicken.

Purchase decision . They wait to see if the product will be adopted by society and will purchase only when this has happened. 5. 3. A successful information search leaves a buyer with possible alternatives.This stage refers to the actual purchase made by the consumer depending on the mode. spurring on later purchasers. they are usually opinion leaders and naturally adopt products after the innovators. after sales services. Usually when they purchase the product a new version is already on the market.This stage will decide if the consumer will purchase the same product again or if he is satisfied with the applications of the product in relation to his needs. Post-Purchase Evaluation .In this stage the consumer evaluates the alternatives he has come across in the prior stage.This is a crucial stage where in the consumer decides on a alternative and proceeds further about when to buy and the mode of purchase. Information search . They are the ‘wait and see’ group. This group of purchasers are crucial because adoption by them means the product becomes acceptable. They early majority usually have some status in society. bargain hunters! Mention the stages of buying decision process? Stages of buying decision process: Problem Recognition . Some may call Laggards. . payment conditions and the product availability. 4. They wait to see if the product will get cheaper.2.This stage refers to recognizing a need or a want that has to be satisfied. Late Majority makes up another 34% of sales and usually purchase the product at the late stages of majority within the life cycle. Early Adopters make up 13. Early Majority make up 34% of purchases and have been spurred on by the early adopters. Laggards make up 16% of total sales and usually purchase the product near the end of its life. This can be improved by warranties. Purchase .This stage refers to the part of the decision process where in the consumer searches information from different sources about the product he needs to buy. Evaluation of Alternatives .5% of purchases.

requiring multiple translations 4. Typical Problems in Rural Research 1. To study the determinants of specification factors which can decide the success the rural promotion strategy.Wide geographical dispersion requires long travels 3. Villages layout based on caste lines.What is meant by Rural Marketing Research? To analyze the present promotion strategy of few brands in rural markets To measure the success of rural marketing campaign of few brands in Terms of consumer appreciation. requiring innovative sampling Mention any 2 methods of classification of rural markets? .Poor access to women respondents 6.A large number of languages and dialects.Non-availability of working population at normal places of residence 5.Low literacy levels require innovations in questionnaire design scales 2. To evaluate the effects of adopting the specific brand ambassadors in the rural marketing context.

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the small segment might disproportionately increase the cost and hence products are priced too high. For consumer markets. Differentiable: The segments should be different from each other and may require different 4Ps and programs. 3. If the information is not obtainable. profile and other relevant characteristics of the segment must be measurable and obtainable in terms of data. 5. Substantial: The segment should be large enough to be profitable. Explain the buying patterns based on the degree of Involvement with suitable examples? . personnel. 4. Measurable and Obtainable: The size. 2. Accessible: The segment should be accessible through existing network of people at an affordable cost. Actionable: The segments which accompany wishes to pursue must be actionable in the sense that there should be sufficient finance. and capability to take them all. market segments must exhibit five characteristics: 1. no segmentation can be carried out.What are the prerequisites for effective segmentation? To be maximally useful.

This only happens when the brand has found an acceptance in the rural market as the one offering good value proposition. Consumers have graduated d to branded products with increased affordability as a result of increasing rural incomes in recent years. empathize and talk to its consumers. approaches and strategies have been employed by different organizations. But building brands in rural areas is a different science altogether. or with the rural environment. to successfully build their brand in the rural markets: CUSTOMIZATION An in-depth study of rural markets is the prerequisite to find out the needs. The challenges in creating a brand identity in rural involve the need to relate the brand with the rural lifestyle. This can be followed with creating or 'reengineering' a product to make it relevant to the need of rural consumers. with its rugged features and the Sarapanch (village head) series have helped to improve sales. Building a brand image The brand should have a personality of its own. Studies also have found out that the brand loyalty in the rural areas is much higher than that found in the urban ones. or with appropriate status symbols. A significant percentage of sales in the rural areas comprise of branded products. who commands high status and respect in the village. The entire brand . Evaluate the statement and examine the Innovation. wants and aspirations of rural consumers by directly contacting them. In this way. visual or numeric association. creating a brand identity in rural becomes a tough challenge. As most brands are introduced in urban markets and then move to rural. Mahindra & Mahindra have maintained their sterling image in rural. This requires a specific committed focus and may not happen as spill over from urban market or by doing slight modification in communication and brand building efforts that were planned for urban markets. The Bhumiputra (son of soil) series of tractors. The following tools. active and sharp child. Such an ability helps in brand connect with rural audiences and contributes a great deal to brand equity and competitive advantage.“Rural Consumers are brand Loyal”. It should emote.adaptability of rural consumers with suitable examples? The concept of branding has been a late entrant in rural markets. Britannia Tiger biscuits created an identity associated with a smart. Nirma and Baba Zarda. for example. The choice of Sampoorna as the name for its rural television brand helped LG as it is a Sanskrit word meaning "wholesome" and hence it cuts across all regional linguistics barriers. it provided an opportunity to the consumer to relate himself with the sarpanch. The sarapanch brand helped to draw close brand recognition between the product and the head of the village. A brand name in the rural context facilitates easy brand recall and in drawing any colours. But some brands are known by their names.

to arouse the interest of rural consumers.building efforts has to be built on the basis of their needs and aspirations from a specific product category and the corresponding value provided by the brand. Therefore. RELEVANCE It begins with the brand name itself and it is important that the brand name or the punch line is in vernacular language and is in tune with the ethos of the market and the social milieu of the market in which the product is going to be sold.e. Commercials with gimmicky hi-tech story that is fast paced may not work well with the rural audience. MESSAGE Message should be in the local parlance and such that the rural audience can easily decipher the intended meaning. The media selected should build a desire for a particular brand i. haats can be an effective medium for rural advertising. The brand building. Around 7. As they relate more with logos. MEDIA The media selected to promote the brand is very important. Message should be utilitarian and narrating the functional benefits of the product. these have to be built prominently in the overall communication. colour and symbols. The same logic applies to the colour. speaking in the regional idiom. which clearly demonstrate how a given product will solve the existing problems of rural consumers. it was a campaign to which audiences could relate to. organisation should select other below the line media as well. logo. than the short commercial on TV. Otherwise the entire brand building effort can go haywire. Demonstration vans with audiovisual equipments . which is done in the Mandis. RECOGNITION . Simple 'Slice of life' message with touch of emotions and storyline are more effective with rural folks. Villagers are in buying mood at the haats and mandis. can be followed by the presence of the organisation in the regular Haats and Mandis for live demonstration of the benefits and actual sales of a product. The successful advertisement campaign by Coca-Cola with the tagline 'Thanda matlab Coca-Cola'. Because of high level of interaction. or contests depicting the qualities and the strengths of a given product. Therefore. live demonstrations. as the conventional mass media may not prove to be very effective when used alone in the rural market. are likely to have much deep-rooted impact. Rural consumers have strong visual sense. has a celebrity endorser not as a hero but as one who is depicting an identity of population of different regions. Message should meet the rural sensibilities and should be modified in accordance with the cultural variation from one region to another. all over India provide a good opportunity to have direct interaction with up to 200 farmers a day. slogan and every aspect of communication so that it strikes a right chord with the rural consumer and they can relate to the message. Melas and other gatherings. icons.600 mandis .

Therefore. present time/ call limits. •Philips developed ‘ Free Power radio’ this radio do not require power and battery also. Nokia develop affordable Mobile phones for rural markets with unique features such as local language capabilities. Parle-G Tikki Packs @Rs 2. it run on simple winding of level provided in the set. which the rural consumers are likely to forget at the time of the purchase. 995. ITC e-choupal E-choupal is an innovative way of applying new technologies for the poor farmers by ITC—one of India’s leading corporate houses which had a diversified product portfolio encompassing . The price of this attractive set is Rs. so they can operate biometric authentication.All these brought positive results for them Examples of Innovations in Rural Marketing Mix ICICI BANK customized their rural ATMs. •Companies came up with special rural products. The stories they hear from others are more believable in the from of hints and tips. Therefore. To develop a product to suit the rural scenario.The vast multitude of the rural population either does not understand English or even is illiterate.hair oil and shampoo sachets @ Re 1 and small Coke @Rs 5. MARKETING INNOVATIONS FMCGs have come up with creams and soaps @ Rs 5. targeting the right set of opinion leaders with the campaigns which lead to oral publicity in the region is more likely to develop the brand recall than the five or ten seconds commercial on the TV. The rural consumers want more credible information and in order to be doubly sure they prefer to hear from other people whom they feel to be more dependable than the TV or print media advertisement. customised TVs by LG. it becomes extremely important that the illiterate rural consumers or those who can not understand English can be certain that they are getting what they are thinking of or desiring to have and not the cheap imitation or a fake product having a similar name. This TV work on the voltage 90-270 volts. likeChic Shampoo sachets @ Re 1. •Philip develop a TV ‘ Vardaan’ for rural markets. Shanti Amla oil by Marico. ICICI rural ATMS are battery operated so that power failure is not issue. WORD OF MOUTH PUBLICITY Rural communications effort undertaken by an organization should be such that it can generate a lot of publicity in the oral collectivist culture of rural India.

Then. Amul In the 1950s. lack of proper infrastructure and the continuous exploitation of strong middlemen who reaped the benefits of their hard toil. and the most important point. specialty papers. Echoupal has helped farmers inpricing their crops and taking decisions on when and where to sell their produce to get more profits.200 echoupal centers in almost 6. Awareness has to be effectively adopted in order . The echoupal initiative was aimed at network villages through the Internet in order to procure agricultural products from the farmers for export purposes in an efficient and effective manner. The 4 AsAcceptability. Companies are finding Rural Markets increasingly attractive. Availability.755 villages. farmers were forced to sell these products at throwaway prices to the usual traders and the strong middlemen who controlled the marketing channels. ITChas successfully managed to establish over 1. With the support of professional organizations and other NGO’s. IT and agriexports. retailing. from a few liters of milk to 6 million liters of milk a day and various other milk products. This led to the formation of Amul. fertilizers and crops insurance to support its profitability. ITC in its e-Choupal initiative offers additional services like selling seeds. Amul is a pattern of cooperative farming which is collectively owned. the life of farmers in the Kaira district of Gujarat was as miserable as that of its counterparts in other parts of India. These farmers were frustrated with the erratic climatic conditions. Though they had the resources of making additional income from milk and other dairy products. hotel.cigarettes and tobacco. operated and controlled by the farmers.500 villages in India by December 2002. ITC’s e-Choupal helps the farmers to take decisions regarding when and whom to sell their products in order to gain more profits with the help of the Internet by analyzing the ratings of different mandis.755 village cooperative societies spread throughout Gujarat and then processing it to produce the final packaged milk and milk products have set new standards in logistics management in the country. E-choupal has enabled farmers to sell their produce more conveniently and atmuch better prices than what they used to sell to the private traders and the middlemen. from a few farmers to more than two million farmers spreading all across Gujarat. Affordability. paperboards. packaging. Starting with just six e-choupals in Madhya Pradesh in June 2000. Amul has become a household name. the farmers realized that this exploitation cannot be stopped until and unless they pooled in their resources and marketed their own products. what started with a cooperative movement in Anand in the 1940s has grown from one village to around 10. It has become a firm which is collectively owned and controlled by the farmers. The logistics adopted by Amul in collecting more than 6 million liters of milk per day from 10. The continuous exploitation by these traders led these farmers to a win-lose situation. Today. due to the absence of a proper distribution network. It has educated the poor anduneducated farmers on how to conduct e-commerce transactions with ease and to get themselves out of the clutches the middleman. Rural population is gradually getting urbanized and has a great potential and improving purchasing power. Similarly.

reaching them is costly. in next 10 years another 30%. Increased contact of rural people with their urban counterparts due to development of transport and wide communication network. Despite the rural urban migration. The rural market share will be more than 50% for the products like toilet soaps. Market growth rates higher: Growth rates of the FMCG market and the durable market are higher in rural areas for many products.1 Crore to promote a consumer durable inside a state.Rural Literacy level improved from 36% to 59% * Low penetration rates in rural so there are many marketing opportunities. though only 44% rural homes have electric connections. body talcum powder. Increase in population and hence increase in demand. cigarettes and hair oil. . tea. Change in the land tenure systems causing a structural change in the ownership patterns and consequent changes in the buying behaviour. According to one research it costs roughly Rs. the rural areas continue to be the place of living majority of Indians.Percentage of BPL families declined from 46% to 27% . Increase in literacy and educational level and resultant inclination to sophisticated lives by the rural folks. With the initiation of various rural development programs there have been an upsurge of employment opportunities for the rural poor. costs twice as much in urban area Number of factors have been recognized as responsible for the rural market boom to come into existence: 1.? Large Population: The rural population is large and its growth rate is also high. * Social Indicators have improved a lot between 1981 and 2001 . Campaign like this.Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved (41% to 23%) .Rural telephone density has gone up by 300% in the last 10 years. Rural markets are laggards in picking up new products. radio. cooking medium (oil). . cooking medium (vanaspati). 2. A marked increase in the rural income due to agrarian prosperity. This will help the companies to . 9. 3. merchandising and point of purchase promotion. Inflow of foreign remittances and foreign made goods into rural areas. 6.In 50 years only 40% villages connected by road.More than 90 % villages electrified. 4. new research indicates that the selling in Rural India is not expensive. every 1000+ pop is connected by STD. television spots.To capture the untapped potential of the rural consumers. van operations and * Infrastructure is improving rapidly. However. 7. 5. which can reach millions. 8. This includes the expenses of advertising in vernacular newspapers. Large inflow of investment for rural development programmes from government and other sources. Briefly explain the factors that have made rural marketing attractive. Standard of living is also increasing in rural areas. in-cinema advertising. Rural marketing is not expensive: Conventional wisdom dictates that since rural consumers are dispersed. .

000 Crores . * Of 20 million Rediffmail signups.000 Crores . most of the rural farmers need price information of agri-produce and inputs. purchases of Agri-inputs.22 lakh have a Village Public Telephone (VPT) * 41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in urban) with cumulative credit of Rs. 50% in small towns/villages. * Of two million BSNL mobile connections. it causes oversupply . * 742 million people * Estimated annual size of the rural market . 50% transactions from these towns on Rediff online shopping site * 42 million rural HHs availing banking services in comparison to 27 million urban HHs. * Of the six lakh villages.2 / 4 wheelers Rs. What makes Rural Markets Attractive? Rural market has following arrived and the following facts substantiate this. farmers mostly depend on local dealers.000 Crores * In 2001-02. 5. consumer durable and sale of rural produce online at reasonable price. Farm information online marketing easily accessible in rural areas because of spread of telecommunication facilities all over India. these farmers need awareness about pests. most of the farmers grow crops in particular seasons not through out the year. If the information is available farmers can take quick decision where to sell their produce.6 million HHs in rural and 6. decease. Thus national chain stores can serve large number of customers in rural area. 45. 5. INFORMATION THROUGH LOCAL AGRICULTURE INPUT DEALERS Most of the dealers have direct touch with the local farmers. 60 % are from small towns. LIC sold 55 % of its policies in rural India. 977 billion resulting in tremendous liquidity. For development of rural farmers the government may consider effective channel and keep information at dealers.Durables Rs.000 Crores . NICNET): Rural people can use the two-way communication through on – line service for crop information. NEED BASED PRODUCTION Supply plays major role in price of the rural produce. 8. if the price matches with local market farmer no need to go near by the city and waste of money & time it means farmers can enrich their financial strength. COST BENEFIT ANALYSIS Cost benefit can be achieved through development of information technology at the doorsteps of villagers. 65.FMCG Rs. fertilizers. seeds. National Chain Stores: large number of stores set up in different rural areas throughout the country by the same organization for marketing its products.Agri-inputs (incl. * Investment in formal savings instruments: 6. This will also help to sell inventories of products out dated in urban markets. tractors) Rs.7 million in urban EMERGING TRENDS IN MARKETS ONLINE RURAL MARKET (INTERNET. For this information. Agricultural information can get through the Internet if each village has small information office. technology and recent developments.phase their marketing efforts. for farmer education hang notice board and also train the dealer recent changes and developments in agriculture.

3 percent of the output is processed by the organized sector commercially. decentralization. APANAMANDI / KISAN MANDI / RYTHUBAZAAR There is a need to promote direct agricultural marketing model through retail outlets of farmer's co-operatives in urban areas. by putting downward pressure on the retail prices. both the supply of inputs and servicing of inputs are undertaken at the same point or by the same company. processing goods. 100 % export oriented units (EOU) and Joint venture units required improving the processing industry.EXPORT Rural produce. farmers awareness can be created about crops and forecasting of future demand. by enabling farmers to take advantage of the high price and secondly.in the market and drastic price cut in the agricultural produce. PROCESSING INDUSTRY India is the second largest producer of fruits and vegetables in the world with an annual production of more than 110 million tones of fruit and vegetable only 1. privatization. the market for processed fruits and vegetables is projected to grow at the rate of about 20 % per annum. transportation and processing capacities increase. However. raw fruits and vegetable. The direct link between producers and consumers would work in two ways: one. Farmers can equates their produce to demand and supply. efficiency and participation. partnership. Now the information technology has been improving if the rural people enable to access the rural communication. RURAL AGRI. If the need based production system developed not only prices but also storage cost can be saved. have the potential market in Asian. MARKET DRIVEN EXTENSION Agricultural extension is continuously going through renewal process where the focus includes a whole range of dimensions varying from institutional arrangements. the reason higher consumption in fresh form. The most important change that influences the extension system is market forces. Europe and western countries. Briefly explain the role of opinion leaders in convincing rural consumers? Opinion . There is a need for the present extension system to think of the market driven approach. It is possible now a days the concept of global village. Integrated Marketing Under this concept. as the packaging. market taste. they can create farmers driven market rather than supply driven market. Particularly soudhy countries have commendable potential for Indian rural produce. which would cater the demands of farmers.

business. Post journalists are often seen in media beyond our own pages. Some of these maybe former business or government leaders. Relevance of Mass Media is also a very important factor. issue. Many Post journalists are sought after for their opinions on government. interest and ideology has its own opinion leaders. They are change agents and active media users. debate and change play out within the media. Many journalists are opinion leaders in their own right. The experience of agricultural input industry can act as a guideline for the marketing efforts of consumer durable and non-durable companies. expand the conversation and affect policy decisions. Each industry. invited to represent their valued opinions. spread ideas. Journalists and Media Journalists inform and advance what opinion leaders are saying. issue. The opinion leaders are the most influencing part of promotion strategy of rural promotion efforts. the ideas and issues of opinion leaders would not be heard.Opinion leaders are the filters of ideas and information. Spreading Ideas and Expanding the Conversation Opinion. Individuals independent of any business or organization can rise to be a well respected and well-read opinion leader in a particular field. The ideas of opinion leaders bounce around the Internet and are discussed by many. writers and the blogosphere. Independent Writers and Bloggers The Internet has spawned an (arguably) more literate society of idea exchange. as they develop a following and a recognized expertise on a particular topic. . Opinion leaders shape business and industries. interest or ideology. Opinion leaders rely on journalists and the media to spread opinion and add to the debate. policy and culture. now publishing books. blogging or otherwise influencing opinion independent of big institutions. Media personalities adopt issues and widen the audience. Opinion leaders engage with the media where their ideas are spread to the wider world of those who care about the industry. Without professional journalists. influence study and debate.

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