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Q.5 what is buying centre? Explain the seven roles of buying centre and
also specify the role of functional departments in the purchase process.
Ans A major task of an industrial marketer is to identify those individuals who
are in any way involved in purchasing decision process. These decision-making
units are called buying centres. Buying centres can be an individual, a
department, or a group of individuals from different departments in the
organisations.
Seven roles of buying centres are:-
The rural areas are where the markets of the future lie. Urban markets are
becoming increasingly competitive and saturated for many products. On the
other hand, rural markets offer growth opportunities for firms caught up in
intensive battle in urban and metro markets. Marketing gurus describe rural
markets as the market of the new millennium. According to them, marketers
have to understand the rural customers before they can make inroads into rural
marketers. A sound understanding of rural consumer behaviour and customer
demand patterns will help the rural marketer to creatively serve the rural market
with ample success.
Strategies:
An efficient countrywide distribution network must be created so that
company's products are available to the farmers at their doorstep.
Advertising communication and servicing must be evolved in tune with
rural needs and in ways different from what is effective in larger towns and
cities.
There should be a strong research and development team to produce
products specifically for rural areas.
Pricing of products should be in line with the economic competence of
villagers.
Packaging should be simpler and more functional than ornamental.
Role of trade in distribution and communication must be strengthened.
Innovative use of media:
In rural marketing, institutional promotion is more important than brand
advertising. To a marketer, this is another hurdle because he/she may promote
the institution and some other brand may be bought. Inability of the smaller
retailers to carry stocks without adequate credit facilities is an impediment for
growth of retail in rural areas. Rural markets have also inadequate warehousing,
which leads to delay in replenishments of stocks. Marketers must overcome all
these barriers to successfully market their product in the rural market.