Cont’d Product Level Characteristics Example Rural Vs Urban Core Benefit Fundamental benefit/ services Entertainment Same Basic Product Benefit/service into tangibles Television Set Same Expected Product Attributes & conditions buyers normally expect Digital sound, flat screen Appearance of differences in expectations Augmented Product Exceeding customer expectations Battery Operated TV Pleasant surprise for rural customer Potential Product Encompassing all augmentations & transformations Jolly Startek TV Uniquely rural value proposition
Product Development Stages Stage Marketing Activities Idea Generation
Searching for new product ideas
Select the most promising ideas and drop those with only limited potential. Study the needs and wants of potential buyers, the environment and competition.
Describe or show product concepts and their benefits to potential customers and determine their responses. Identify and drop poor product concepts. Gather useful information from product development and its marketing personnel.
Assess the product’s potential profitability and suitability for the market-place. Examine the company’s research, development, and production capabilities. Ascertain the requirements and availability of funds for development and commercialisation. Project ROI.
Determine technical and economic feasibility to produce the product. Convert the product idea into a prototype. Develop and test various marketing mix elements.
Conduct market testing. Determine target customers’ Reactions. Measure its sales performance. Identify Weaknesses in product or marketing mix.
Make necessary cash outlay for production facilities. Produce and market the product in the target market and effectively communicate its benefits.
Levels of Distribution Level Partner Location 1 Company Depot/ C & FA National/ State level 2 Distributor/ Van Operator/ Super Stockist/ Rural Distributor District level 3 Sub Distributor/ retail Stockist/ sub stockist/star seller Tehsil HQ, towns and large villages 4 Wholesaler Feeder towns, large villages, haats 5 Retailer Villages, haats
Syndicated distribution, Example: Cavin Care & Amrutanjan
Use of marketing co-operatives, Example: Warna Bazaar in Rural Areas
Mobile traders, Example: FMCG companies
Promotion- Adaptations for Rural Markets Conventional Non- Conventional Personalised Television Haat and Mela Direct mailer Radio Folk Media( puppet and magic show) POS (demonstration, leaflet) Press Video Van Word of mouth Cinema Mandi Interpersonal communication Outdoor: Wall Painting, Hoarding Animator