In simple words, is planning and implementation of marketing function for the rural areas.
It is a two-way marketing process which encompasses the discharge of business activities that direct the flow of goods from urban to rural areas(for manufactured goods) and vice-versa (for agriculture produce)
R.Marketing has also been defined as the process of developing, pricing, promoting, distributing rural specific goods and services leading to exchange between urban and rural markets, which satisfies consumer demand and also achieves organisational objectives (Iyer)
Factors differentiating rural marketing from urban marketing
Adi Godrej, chairman, Godrej group . “ the rural consumer is discerning and the rural market is vibrant. At the current rate of growth, it will soon outstrip the urban market. The rural market is no longer sleeping but we are”
1.distribution : the problems of physical distribution of channel mgt adversely affect the service as well as the cost aspect- it is not commensurate with the returns that the marketers expect.(poor infrastructure)
Greatest challenges is reaching out to the remotest destinations and having a number of vendors at the retailing end.
As per I. Natarajan, chief economist – “ The rural marketer has tremendous opportunity and he stated clearly that, it was not the buying power but the distribution , which was the biggest hindrance in realising the potential of the rural market
5 lakh ruraliter have gone abroad- sending remittances
Rakesh kalra, CEO Eicher motor agreed “ as long as the rain deficiency during monsoon is not more than 20% the long – term average there is n’t a significant negative impact on the commercial vehicle sales.”
Schiffman and kanuck – “ the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. It is thus a study of how individuals make decisions to spend their available resources – like time, money, effort- on consumption related items.
Four types of buying behaviour, based on the following two parameter
1) degree of buyer involvement ( high and low)
2.degree of differences among brands (significance and non significance)
High involvement Low involvement Significant differences among brands Complex buying behaviour (expensive, may difference in brands like computer, automobile) Variety seeking buying behaviour (less expensive and frequently purchased, experience – size,smell, sound, touch, ice crea, confection) per yr India – 6 brand, america -2 brand Few difference among brand Dissonance reducing behaviour(expensive,but few different like social products- furniture) Habitual buying behaviour(low cost, frequently purchased –salt,soap,-exception in cigaretter- brand preference is more)
On basis of the amount of time spent, purchase behaviour can be classifies
Planned purchase behaviour
Emergency purchase behaviour(to avoid stock-out)
Impulse purchase behaviour(purchase spontaneously, taking decision on the spot)
The consumer passes through a series of steps while purchase
Step 1. need identification /problem awareness
Step 2. information gathering
Step 3. evaluation of alternative solution
Step 4. selection of appropriate solution
Step 5. post purchase evaluation of decision
Postpurchase Behavior Purchase Evaluation of Alternatives Information Search Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps
Post purchase behaviour ? Cognitive Dissonance ? Did I make a good decision? Did I buy the right product? Did I get a good value? ?
Today, the bright shine of colgate or some other international brand of tooth paste holds more appeal than the traditional methods of cleaning teeth
At a seminar on rural marketing , organised in New Delhi , by the international development enterprise, “ the Indian rural tastes are changing fast, thereby reflecting a marked improvement in the purchasing power of village household ”
30-08-2010: Once again this year HUL brands have topped the ‘ India’s Most Trusted Brands Survey’ rankings. Six HUL brands (Lux, Lifebuoy, Clinic Plus, Pond's, Fair & Lovely and Pepsodent) feature in the top 10 and eight in the top 20.
Product and pricing for rural market:marketing mix for rural markets- developing a new product for rural market- product life cycle- innovations in product design rural market- branding products for rural markets price determination for rural market- pricing methods for rural market.
The clearing and forwarding agent is the representative of the manufacturer. The C&F manages the company's warehouse and handles distribution on behalf of the company. The goods that the C&F deals in is the property of the company he is representing. The C&F gets a small commission for his services. The C&F deals with the wholesalers - including the super-stockist, stockists and distributors.
As media does not cover as much as 43% of rural india
Events like fair, festivals, cinema van, shop front
Stickers on hand pumps, wall of wells, putting on tin plates on all the trees , pond- innovative media used by HLL for lux, life boy and wheel
Folk media – quite popular in different regions and state
High frequency Low frequency High reach Jeep, wall painting, bus stand , haat, hoarding Van based advertising , melas, direct to home, exhibitions/ created events Low reach Co operative notice, shop front painting, tin plating – calender / label Tin plating – trees / shop leaflets, posters and banners , danglers
A brand is defined as a name , term, sign, symbol or special design or some combination of these elements that is intended to identify or differentiate the goods or service of one seller or a group of sellers (American Marketing Association)
The product concept becomes visible and operational when psychological needs are specified in physical terms
A) quality – durability, capacity, efficiency, economy, reliability
B) features – 1) rational problem solving- it is willingness to buy solutions that leads marketers to add features to the stripped down model 2) emotion fancy- the second type of features are those that capture the attention of the buyer . They are less funtional and more fanciful.
Historically, the rural distribution system has included wholesalers, retailers, mobile traders, vans and weekly haats
Wholesaling : more than 70% of the rural market is still beyond the reach of direct distribution- due to low density- rural market were neglected, company distributors focused mainly on the large number of retailers in urban areas
Rural retail spread: rural india accounts for 65% of retail outlet in the country . Restricts the variety and range of the products stocked. Distributors can cover most of the larger 2000 and population villages numbering around 1,10,000
Retail premises: three out of four shops have less than 100 sq.ft area. Constraints (lack of sufficient space, inadequate power suppley, lack of proper storage system, )
The SHG distribution model ( project shakthi), satellite distribution, syndicated distribution, the NYKS model, use of IT kiosks(e- choupal) PDS, cooperatives, petrol pumps, agricultural input dealers and other unconventional channels of distribution are recent initiatives .
SHG – 10-15 women , with over 10 lakh SHGs across India. The initiatives taken by HLL,TTK prestige and TVS mopeds
Satellite distribution (the hub and spoke system-strong and viable model)
Syndicated distribution- 2 or more companies come together to form a syndicated trading organization, to jointly distribute a collective group of household product in rural markets by sharing distribution cost (ex) P & G to sell with Ariel, tide etc, Cavinkare- Amrutanjan pain balm.
NYKs haat distribution model: the Nehru Yuva Kendra Sangathan hires young people (18-35 ages) . Pay monthly stipend of Rs 2,000. assigned to 15-20 villages to organize awareness camps, cultural and sport events.