Rural Marketing

30.1

 Factors Contributing to Growing Interests in Rural Markets:

Increasing Competition in Urban Markets

Socio-Economic Changes in Rural India Size of the Rural Market

30.2

The Rural Consumer

Characteristics of the rural consumer:
A-Education Profile: Less educated than his/her urban counterparts

Implication:
Visual displays and phonetics become important in promoting the product in rural areas.

Demonstration on product usage becomes integral to the

marketers strategy Mass and personalized communication required
30.3

B-Low Income Levels: An average rural consumer has a much lower income than his/her urban counterpart Implication: Large part of his income goes to provide basic necessities, leaving a smaller number to be spent on other consumer goods An average rural customer buys a single unit of the product and not in bulk Rural demand is for low priced products Assured performance products Credit is an accepted pattern Repayment linked to crop condition
30.4

Occupations:

Principal occupation is farming, animal husbandry, poultry farming, trading, crafts, plumbing, electric works, primary health workers and teachers Basis for differentiation is the size and ownership of the land

30.5

Reference Groups: Primary health workers, doctors, teachers, and the panchayat members The village trader or the grocery shop owner Rural banks officer or the manager

30.6

Media Habits: Rural customer is fond of music and folklore Nautankis and Tamashas entertained the rural customer in the earlier days

TV, radio and video have replaced traditional forms of entertainment

Audio and video has more impact than the print media on the rural customer

30.7

Marketing Mix for the Rural Markets

Product Decisions: Simpler, easy to use, serviced or maintained. Product literature to be simple Dispensable in single units Brand identity in rural markets is often created through the visual logo of the product, the color of product or the taste of the product

30.8

Pricing Decision: The rural consumer is price sensitive Some approaches to making product more affordable Work through rural banks and offer hire purchase terms to the customer Offer smaller unit sizes Pass the benefits of lower costs by buying from smaller firms and marketing in rural markets Finance through intermediaries

30.9

Promotion Decision: Jingles, folklore, and music can combine to make a message and brand name memorable Visual copy has a much greater appeal than just the audio or the print Media- TV, radio, wall paintings, roof paintings are effective Bus panels, stickers, shelf display, and hoardings are also effective Rural sports like Kho-Kho, Kabaddi, bullock cart race, rural fairs, haats can be used to promote brands

30.10

Distribution:

Key to penetrating rural markets

Firm should deploy a mobile distribution strategy, covering several villages in a single van cycle Competition is driving firms to reach to the buyer Weekly rural market/haat also aid effective distribution

30.11