Rural Marketing Strategies, Consumer Buying Behavior.


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Rural Marketing Strategies, Consumer Buying Behavior.
Presentations By Rajendran Ananda Krishnan,

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Rural Marketing Strategies, Consumer Buying Behavior.

  1. 1. RURAL MARKETING-CONSUMER Rajendran ananda krishnan
  2. 2. TOPICS TO BE COVERED Rural Consumer : Consumer buying behavior models, Factors affecting consumer behavior, Social Factors, Technological Factors, Economic Factors, Political Factors things Characteristics of Rural Consumer – Age and Stages of the Life Cycle, Occupation and Income, Economic Circumstances, Lifestyle, Personality and Brand Belief, Information Search and pre purchase Evaluation, Rise of Consumerism Consumer Buying Process, Opinion Leadership Process, Diffusion of Innovation, Brand Loyalty
  3. 3. MODEL OF CONSUMER BEHAVIOR Consumer Psychology BuyingMarketing stimuli Other stimuli Decision things Motivation Process Product Economic Price Technological Perception Problem Distribution Political Learning Recognition Communication Cultural Memory Information search Consumer characteristics Evaluation of Purchase decision alternatives Cultural Purchase Product choice Social decision Brand choice Dealer choice, Personal Post Purchase amount, purchase Purchase timing, decision Payment method
  4. 4. CONSUMER BUYING BEHAVIOR MODELSConsumer decision making varies with the type of buying decision. Complex and expensive purchases are likely to involve more buyer deliberations and more participants. Henry Assael distinguished four types of consumer buying behavior based on the degree of buyer involvement and the degree of differences things among brands.Complex buying behavior – Consumers engage in complex buying behavior when they are highly involved in a purchase and aware of significant differences among brands.This is usually the case when the product is expensive, bought infrequently, risky and highly self-expressive. The marketer needs to differentiate the brand‟s features, use print media to describe the brand‟s benefits and motivate store sales personnel and the buyer‟s acquaintances to influence the final brand choice.For eg. Automobile, two-wheeler, consumer durable.
  5. 5. High Low involvement InvolvementSignificant Complex Buying Variety-seeking buyingdifferences behavior behavior between Eg. Automobile,Two- Eg. Chocolates, brands wheeler, consumer cookies Few durablesdifferences Dissonance-reducing Habitual buying behavior between things buying behavior Eg. Salt brands Eg. Carpet Dissonance-reducing buying behavior – Sometimes the consumer is highly involved in a purchase but sees little difference in the brands. The high involvement is based on the fact that the purchase is expensive, infrequent and risky. For example, carpet buying. After the purchase, the consumer might experience dissonance that stems from noticing certain disquieting features of the carpet or hearing favorable things about other carpets. Thus marketing communication should aim at supplying beliefs and evaluations that help the consumer feel good about his or her brand choice.
  6. 6. Habitual Buying Behavior – Many products are bought under conditions of low consumer involvement and the absence of significant brand differences. Consider salt.Consumers have little involvement in the product category . They go to the store and reach for the brand.If they keep reaching for the same brand, it is out of habit, not strong brand loyalty.It happens with most low-cost, frequently purchased products.Marketers find it effective to things use ad repetition, price and sales promotion to stimulate product trial.Variety-seeking buying behavior – Some buying situations are characterised by low consumer involvement but significant brand differences. Here consumers often do a lot of brand switching. Think about cookies. The consumer may reach for another brand out of boredom or a wish for a different taste. The marketer will try to encourage habitual buying behavior by dominating the shelf space, avoiding out of stock conditions, sponsoring frequent reminder advertising, offering lower prices, deals, coupons and free samples.
  7. 7. FACTORS AFFECTING BUYING BEHAVIOR MotivationReference Perception things Groups, Social Learning Family, factors, Psychological MemoryRoles and Cultural Factors Status factors Marketing Age and Stage in Personal the Life Cycle, Mix factors Occupation and Product Price Economic Place Circumstances,Promotion Personality, Lifestyle
  8. 8. FACTORS AFFECTING CONSUMER BEHAVIOR –CULTURAL FACTORS  Customs are socially acceptable norms that have been in practice over a long period of time. Rural India, being until now largely isolated from new practices and things customs, tends to follow the customs of its traditional society. In urban India, however, in the due course of time, many of the customs have changed and continue to change, a change that is accelerated when a new generation adopts new value systems and practices in order to fit into perceived modernity.  Regional influences can be defined as a set of attributes exhibited in clothing, preference for certain types of cereals, food preparations etc.For eg. Tamilians prefer to cook their native idli with sambhar.
  9. 9.  Traditions are long standing beliefs that are believed to be true in nature and are often practised in a ritualistic manner, without knowing the origin or questioning the need to do so. For eg. A tradition that after washing/shampooing the hair, it should not be left open is based on a things belief in some parts of rural India that this gives an opportunity for evil spirits to enter. Shampoo ads showing the bounce in the woman‟s hair after a wash may communicate a message quite different from what was intended.
  10. 10. FACTORS AFFECTING CONSUMER BEHAVIOR Rural Taste Subject Urban Taste Bold and Primary Colors Liked Shades of Colors, Light Colors Hues things Cinema, Nautanki, Entertainment Theme Parks, Internet, Dangals, Melas Travel Synthetics, Colourful Clothes Denim, Cottons, Designer Red – Happiness, Color Relevance Red – Danger Auspicious. Green - Green - Safety Prosperity
  11. 11. SOCIAL FACTORS Touching feet Hair should not be left open after washing. Housing in rural areas based on caste and in urban things areas based on Socio economic class. Influenced by NGOs, Opinion Leaders, Aanganwadi workers, SHG members. Joint Family in rural areas and Nuclear Family in urban areas. Role and Status of Sarpanch, retired military personnel, priests, teachers, medical practioners. Product choice features Very Social in Rural Areas
  12. 12. PRODUCTS AND STATUS SYMBOLSRural UrbanSocial/Political status Educational Degree things CarLarge Pucca House with courtyard House LocalityChildren‟s city education / jobs Children‟s school / collegeLand AirconditioningTelephone Club membershipPilgrimage Holiday Abroad
  13. 13. TECHNOLOGICAL FACTORS Rural India is beginning to experience the impact of technology, leading to major changes that are transforming the countryside. Opportunities, products, things services, knowledge, information are all exploding. Introduced with the purpose and need to create an instant network for good governance, telecommunications has transformed rural India in so many other ways that is of interest to marketers. STD booths and PCOs have emerged as the new community centre in the villages for the exchange of news and views for every age group and therefore an important place fro marketers to display brand communication messages.
  14. 14. ECONOMIC FACTORS The entire economic environment of rural India shows a much improved prosperity due to repeated things benevolent monsoons, new and improved techniques, higher quality of inputs and increasing awareness and education on agriculture. Banking is reaching out to the doorstep of more and more farmers. Finance is now more readily available and so is credit.
  15. 15. POLITICAL FACTORS Schemes launched by Government has led to the development of rural areas. things The Government of India is empowering the Panchayati Raj and other village institutions by making available developmental funds. This has resulted in major purchases of equipment and materials needed for infrastructure development. 30% compulsory representation of women in local bodies is leading to their empowerment, encouraging women in rural India to explore income generation and entrepreneurial activities.
  16. 16. FUNDAMENTALS OF RURAL CONSUMERBEHAVIOR Demonstrations, Targeting Opinion Leaders, Employing Trained Sales Persons things Lack of Strong Brand Consciousness Generally ask for the product and not the brand. Indian consumers, on an average, try about six brands of same package goods product in one year, compared to two for Americans.
  17. 17. LIFESTYLE OF RURAL CONSUMER Rural Consumer is very religious – Dabur developed a religious calendars and gave things Hanuman Chalisa along with their products. Ganga made of milk and holy water of Ganga. Govinda as a Brand Ambassador. Rural Consumers prefer to work Hard themselves – Machines to be sold on the basis of benefits offered and not on the basis of comfort and convenience. Strong Family ties and respect for Family Values Likes to play Cards and Hangs out at Choupal.
  18. 18. RURAL SHOPPING HABITS : CONSUMERINSIGHTS Preference for small or medium Package – Britannia‟s Tiger Biscuits, Cavinkare‟s Chik things Shampoo, and small Coke for Rs. 5. Role of Retailer Role of Opinion Leaders for durables – Opinion Leaders like Sarpanch, village elders and educated Youth of the village.
  19. 19. CONSUMPTION BY AGE AND STAGES OF THE LIFE CYCLEAge Life-Cycle stage Urban RuralBelow 12 Child Video games, Chocolates, Toys, ice candy, beverages, health drinks daliya things Teenage Cell phones, motor cycles, Bicycle, television, Internet cinema20-40 Young Car, Personal Computer, Motorcycle, branded clothing, alcohol, telephone, LPG, stores/malls tailored/unbranded clothes, local liquor, haat40-60 Middle Aged Luxury Car, Credit Cards, Tractors, Kissan House, health insurance, Credit Card, postal holiday trips savings, melaAbove 60 Old Clubs, theatre, parks Chaupal, Playing Cards, pilgrimage.
  20. 20. OCCUPATION AND INCOME In the rural sector, a range of goods and services beyond the very basic ones are bought by a things consumer, influenced by the occupation and income of the individual. Fishermen buy a boat and large nets, whereas a farmer opts first for a tractor and pump set.
  21. 21. LIFESTYLE – COMPARISON OF RURAL AND URBAN LIFESTYLEDimensions Urban Rural things Convent Educated, Govt school, self-employed,s salary earner, small large family, small/scattered nuclear family, large population, ordinary spacious dense population, houses apartmentsActivities Office jobs, internet Agriculture, physical sports, surfing. Health club, gossip, playing cards, shopping, clubs and cinema, religious party congregation.Interests Chinese, Continental Desi food, milk, bright colored foods, designer clothes, clothes, jewellery, visiting beauty salons, holiday towns, markets/melas trips
  22. 22. INFORMATION SEARCH AND PRE-PURCHASEEVALUATION The rural consumer primary seeks and gets his information from opinion leaders and influencers, rather than the media. However, this information search is things fuelled by exhibitions and road shows, because of the opportunity of personal interaction and leisurely pace of absorbing and understanding the information and its relevance. In the case of high involvement products, this information search needs to be supplemented by an out of village visit to a company outlet with an opportunity for personal interaction. The need to demonstrate individual accessories of the product and their performance also becomes critical. The ultimate clincher is always the „touch and feel‟ experience. Anything less will not lead to a purchase.
  23. 23. STAGES IN BUYING DECISION PROCESS Problem Recognition Problem Recognition – The buying process starts when the buyer recognises a problem or need. The need can b triggered by internal or external stimuli. In the former case, one of the person‟s normal needs – hunger, thirst things Information search rises to a threshold level and becomes a drive. In the latter case, a need is aroused by external stimulus. A person passing through a bakery and sees a freshly baked cake which stimulates her hunger. Marketer Evaluation of needs to identify the circumstances that trigger a alternatives particular need. Information search - Two levels of involvement Purchase decision with search. The milder search state is called heightened attention. At this level person simply becomes more receptive to information about product.At the next level is active information Post-purchase behavior search. The person looks for reading material, phones friends and engages in other activities to learn more about the product.
  24. 24. Urban Buying Process RuralHigh-involvement product, Need Recognition High involvement product -comfort, status, drive, productivity drives consumer‟sconsumer‟s recognition for recognition for need.needFirst hand information from Information search First hand information from aTV, Internet, Newspaper Ads/ fellow owner and nearby dealer things a fellow owner at district town.before dealer visitEducated/aware understands, Evaluation of Lower education andanalyses technical alternatives awareness. More importance tospecifications. At most looks fellow owner and illustration offor test drive dealer. Consults opinion leader like progressive farmers. Live field demonstration.Normally buyer makes final Purchase decision Collective decision by buyer,decision. Family influences adult son, mechanic andcolor and looks,. Drives new progressive village home with family.
  25. 25. CONTD.Higher satisfaction Post-purchase Higher satisfaction,or dissonance behavior lower dissonance.because of greater Because risk-taking things factor. is lower andHigher risk taking expectation level isability, because of low. Low risk-takingwanting ability becauselife-experimentation. attached product,After sales service lack of technicalno issue know how, low confidence on after sales service.
  26. 26. DIFFUSION OF INNOVATIONDiffusion of Innovations is a theory of how, why, and at what rate new ideas and technology spread through cultures.Elements of diffusion of innovations things InnovationRogers defines an innovation as "an idea, practice, or object that is perceived as new by an individual or other unit of adoption" . Communication channelsA communication channel is "the means by which messages get from one individual to another.” Time"The innovation-decision period is the length of time required to pass through the innovation-decision process" . Rate of adoption is the relative speed with which an innovation is adopted by members of a social system. Social system"A social system is defined as a set of interrelated units that are engaged in joint problem solving to accomplish a common goal“.
  28. 28. thingsyouThank