1.RURAL MARKETING SCENARIO
2. COMPOSITION OF CONSUMER
3. RELEVENCE OF PRODUCT, PRICE,
PLACE AND PROMOTION IN RURAL
4. THE ROLE OF ADVERTISING
India with population of above 200 million is the word’s 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
Changing attitudes & life styles
The communication revolution
Two sides of rural markets
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
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,
Face powder, Bindi,
Bangles, Nail polish paper, magazines,
Dress materials, Bulbs medicines, tooth brush etc
Estimated annual size(Rs crore)
STP+ 4P’S=MARKETING STRATEGY
PRODUCT----- Product design, features, brand name, models, styles, appearance
Package: design, material, size, labeling etc.
PLACE--------- Cannels of distribution: Design, location of intermediaries, location of outlets,
Dealer- principal relations etc
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.
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
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”
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.