RURAL MARKETING IN TERMS OF STP

Presented ByAkanksha Anjum Kavya Kamaldeep Salma Vivek

Contents
Introduction about rural marketing- Salma Strategies of rural marketing- Anjum Segmentation and degree of segm. - Kavya Types of segmentation- Akanksha Targeting- Vivek Positioning- Kamal

Rural Marketing
Rural Marketing is defined as any marketing activity in which one dominant participant is from a rural area. Rural marketing consists of marketing of inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas.

Major Areas of Concern in the Rural Marketing Sector

Government should assume a more dynamic role in the field of agricultural marketing that of a strong buffer between global forces and local needs. Emphasize value addition by giving a thrust to agro-processing industries at farm level so that the benefit of value addition is transferred to the producer. There is a need for professionalizing agricultural marketing as a subject of great practical application. Creation of an effective market intelligence network, right from the importer in the global market to the producer in the remote corner of the rural India. Decentralization in the marketing system.

 Economic incentives should be offered to the farmers to encourage them during low economic conditions. A design frame work for information technology based Agricultural Marketing Network is essential. Regular surveys and analytical studies on agricultural marketing should be conducted, so that appropriate policy adjustments and refinements whenever necessary. To introduce social marketing for bringing about a change in the behavior and attitude through social advertising and social communication. Some fertilizer companies and commercial banks are taking up Village Adoption Programmer under the social marketing. Institutional linkages should be emphasized upon to integrate the markets, for easy movement of goods and also to facilitate the inter-state trade.

Strategies of Rural Marketing

1. Product Strategies Small unit and low priced packing: Larger pack sizes are out of reach for rural consumers because of their price and usage habits. E.g. shampoos, biscuits, pickles etc. New product designs: Household items indicates the importance of redesigning or modifying the products. Sturdy products: Sturdiness of a product either in terms of weight or appearance is an important fact for rural consumers to rough handling and storage. Brand name: A brand name and/or logo is very essential for rural consumers for it can be easily remembered.

2. Pricing strategies Low cost/cheap products: This is a common strategy being

adopted widely by many manufacturing and marketing men. Price can be kept low by small unit packing's.

Avoid sophisticated packing: Simple package can be adopted

which can bring down the cost as.

Refill packs/reusable packaging: By such technology also the

price can be reduced. Packaging material used should preferably lend itself for reuse in rural areas.

Application of value engineering: This is a technique which

can be tried to evolve cheaper products by substituting the costly raw material with the cheaper one, without sacrificing the quality or functional efficiency of the product

3. Distribution strategies The characteristics of the product, its shelf life and other factors have to be kept in mind.

Distribution strategies that are specifically designed for rural areas are: i. Through co-operative societies. ii. Public distribution system. iii. Multi-purpose distribution centers. iv. Distribution up to feeder markets/ mandi towns/hat/melas. v. Agricultural input dealers etc.

Most manufacturers and marketing men do have a distribution arrangement for village with a population of at least 5000 people.

4. Promotion strategies Mass media is a powerful medium of communication. It could be television, cinema, print media, radio and so on. The other means of mass media available are hoardings/wall paintings, shanties/hats/melas, non-price competition, special campaigns etc. Related to agricultural and other rural industries products, the government should circulate pamphlets either to panchayati raj office or to schools where it can be documented for the reference.

5. Branding strategy Rural Product Development: products have to be specifically developed to meet the needs of rural markets. Rural Branding: rural branding is to research and gain insight into the working of rural markets. Based on this communication campaigns have to be developed with a lot of rural sensitivity. Rural Communication Campaigns: Communication for rural markets calls for a different kind of outlook. There must be a strong accent on helping the target relate to the message. Rural Events: One of the best ways to capture the attention of the audience is through Event-management.

 Rural DM Campaigns: Direct Marketing (DM) is one of the most powerful way to meet the target on their turf and build product awareness as well as promotion. Database Creation & Management: Marketing, branding and promotional activities in the rural context can be highly effective and thereafter have to create a database of prospects.

Segmentation
Segmentation is dividing the heterogeneous market into sub- markets Heterogeneity.
Geographic

Demographic
Psychographic Behavioral

Degrees of segmentation
1. Mass marketing:
Most marketers used this in rural markets. All consumers being treated the same. company could target maximum no. of consumers. First step in marketing-less market knowledge. e.g. Colgate Palmolive successfully marketed same toothpaste to all consumers in urban and rural market. They introduced Cibaca when the rural market became more demanding.

2. Segment marketing:
Identifies customers as different groups. e.g. Britannia introduced smaller pack sizes of Tiger biscuits in 1998,Rs4,Rs 2,Rs 1 pack.

3. Niche marketing:
Serves selectively one or a few customer groups. Niche marketing is used when there is a small group with specific need .Our rural market is not matured to this level. E.g. Hero Honda bikes, Nokia mobiles

Types of segmentation Geographic Segmentation

Village Population and Density size of population-a major factor that determines the overall potential demand for a product/service. Class I-population over 5000. Class II-population between 1000-5000 Class III-population less than 1000 The following are some examples of geographic variables often used in segmentation. Climate -Climatic conditions play an important role. According to weather patterns common to certain geographic regions.

 Region: by continent, country, state, or even neighborhood. Size of metropolitan area: segmented according to size of population. Population density: often classified as urban, suburban, or rural. Culture -society and culture provide insights into the attitudes of people and their needs.

Demographic Segmentation
Some demographic segmentation variables include: Age Gender Family size Family lifecycle Generation: baby-boomers, Generation X, etc. Income Occupation Education Ethnicity Nationality Religion Social class

1.Age and Life Cycle:

Pre Independence Pain of Nation Building(Post Independence) Pain of Liberalization(1985 onwards) Liberalization Children( 1990 onwards) Millennium Children( 1997 Onwards) Marketers target the age group of 8 -15,exposed to urban markets. Joint family and large families still predominate. Increase in family size-increase in consumption. Also leads to multi brand consumption. Increasing nuclear families-greater demand of products, esp. consumer durables like TV, cooker, LPG connection.

2.Family Structure:

3. Occupation

Farm based occupations. Cultivators: farm owners, marginal farmers. Agri and non agri labor. Poultry, dairy Salary earners: doctors, teachers. Traders, micro entrepreneurs.

4. Income
Income is seasonal( post harvest for farmers)or Weekly/daily( Wage Earners) . Multiple sources of income( agriculture, dairy etc). Agricultural income is not taxable.

Psychographic Segmentation
Psychographic Segmentation seeks to identify and group consumers on the basis of socioeconomic classification, lifestyle and personality. Some people are innovators who possess a high self esteem and their purchase habits reflect their taste for niche-oriented goods and services. On the other hand, people who belong to the thinker category choose and buy products by assessing their functionality and durability. Some psychographic variables include: Activities Interests Opinions Attitudes Values

Behavioralistic Segmentation
Behavioral segmentation is based on actual customer behavior toward products. Some behavioralistic variables include: Benefits sought Usage rate Brand loyalty User status: potential, first-time, regular, etc. Readiness to buy Occasions: holidays and events that stimulate purchases Behavioral segmentation has the advantage of using variables that are closely related to the product itself. It is a fairly direct starting point for market segmentation.

Targeting
Targeting involves evaluating segments attractiveness. each market Selecting any one or more segments to enter. Evaluation of segment. Selection of segment. Coverage of segment.

Steps of Targeting
Step1- Evaluation of segments
Profitability of segment Attractiveness of segment Growth rate of segment

Companies objectives

Limitations of segment

Step 2- Selection of segment

Selection of segment can be made by rating the alternative segment on a predetermined scale in respect of 5 aspects given above. The segment may be ranked based on the scores obtained and be considered for selection. Those with the high scores will be accepted and the others will be kept aside for future consideration.

Step 3-Coverage of the segment

Organization has 3 alternative coverage strategies to suit their segmentation approaches. They are: Undifferentiated marketing strategy Differentiated marketing strategy

Concentrated marketing strategy

Positioning
The art and science of fitting the products or services to one or more segments of the broad market in such a way as to set it meaningfully apart from competition. Monitoring the position.
Determining competitors position. Making the positioning decision.

Brand positioning
In the process of branding, the aspect of brand activation at ATL (above the level) and BTL (below the level) makes a vital contribution for the marketing journey.

Good branding strikes a chord with viewers help them relate with the product and reflect their aspirations.
To attain a safe platform in Brand activation, the Marketing Managers pay attention and focus in a diligent manner on the value based credentials of the users in the Marketing arena.

Brand positioning

There are seven C's steps for brand positioning

1. 2. 3. 4. 5. 6. 7. Capacitate Cabochon Caesarism Cameraderic Calibre Clincher Catagorize

1. Capacitate: Understand the company history, its products, top management's objectives their view of the market and their commitment to branding. 2. Cabochon: Our brand is the achievable, differentiating, compelling, attractable, and for long run. 3. Caesarism: Caesarism literally means the creative and unique thought, ideas and actions in a catchy manner to penetrate the customers' mind regarding the brand of the products in the selling buying process. 4. Cameraderic: By learning from environment be strong enough to make changes as needed, yet have the faith and courage to be patient and let your marketing programs build your brand.

5. Calibre: Obtain feedback by setting up a response analysis system for individual media, as well as tracking system to measure effectiveness of marketing investments where they are best tested in the market. 6.Clincher: Incorporate consistency in media scheduling, adequacy of spending levels and extend brand message across products and campaigns. 7.Catagorize: The company's should outline very exact specifications of what they hope to accomplish. The company has to invest often in emerging technologies and services simply because what all the customers earnestly believe will eventually set a standard