Rural Marketing, VTU Syllabus Module 7


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Rural Marketing, VTU Syllabus Module 7

  1. 1. Communication Strategy Prof. Raghavendran Venugopal 1
  2. 2. Introduction• Advertising goes hand in hand with economic growth.• Scenario has changed since economic liberalization.• Influence of Electronic media is contributing to the growth of rural aspirations.• Communicating properly to the rural customers was the main challenge for corporate marketers.• Reaching out to the rural consumers also presented a great challenge.• Rural Communication is not a ‘peripheral activity’. Prof. Raghavendran Venugopal 2
  3. 3. Challenges in Rural Communication• Heterogeneity and National Language s Spread 16 Scheduled Languages Languages with widespread Use: 47 languages used for primary education ,98 used in print media, 71 used on radio, 13 used in films Local Vernaculars: Over 114 recognized varieties, 216 mother tongues with more than 10000 speakers were recorded in 1991 Prof. Raghavendran Venugopal 3
  4. 4. Key characteristics of heterogeneous rural markets• Widespread geographical dispersion (6,38,000 villages) many of them are still beyond the reach of media.• Vast variations in levels of literacy.• Literacy (Kerala 90%, Bihar 44%).• Variations in reach of electronic media (Kerala 63%, Bihar 17%) and print media (Kerala 65%, Bihar 9%) Prof. Raghavendran Venugopal 4
  5. 5. Therefore, the requirement is threefold• To identify the most suitable medium to ensure maximum spatial research.• To develop region-specific consumer profiles to understand the characteristics of the target market and• To design the most effective and persuasive communication and promotional strategies to induce the target audience to buy the product. Prof. Raghavendran Venugopal 5
  6. 6. Understanding the Rural AudienceThere are two distinct sets of audiences in rural India:• A growing number of educated, upwardly mobile, middle class people with aspirations and high exposure to mass media and with considerable purchasing power, in many ways similar to their urban counterparts.• The illiterate masses, who are poor and cannot be easily reached through the mass media.In terms of economic progress, rural India is divided into:• Developed states (Punjab, Haryana, Kerala, Tamil Nadu, Andhra Pradesh, Karnataka and Maharashtra)• Underdeveloped or developing states (all other states) Prof. Raghavendran Venugopal 6
  7. 7. A View of the Communication Process The Communication Process Model MESSAGESENDER ENCODING ----------------------- DECODING RECEIVER MEDIA NOISE FEEDBACK RESPONSE Prof. Raghavendran Venugopal 7
  8. 8. The receiver may not receive the intended message due to any one of the following reasons:• Selective attention: where the consumer may not notice the stimulus provided.• Selective distortion: where the message is deliberately twisted so that the consumer hears what he/she wants to hear and• Selective recall: where the consumer retains only a small fraction of the message that reaches him/her. Prof. Raghavendran Venugopal 8
  9. 9. Developing Effective CommunicationDeveloping effective communication involves five steps:1. Profiling the target audience2. Determining the communication objectives3. Designing the message and ensuring the effectiveness of the message4. Selecting the communication channels5. Designing the promotion strategy and integrating the communication process Prof. Raghavendran Venugopal 9
  10. 10. 1. Profiling the target audience The steps involved in designing an effective message for rural consumers are probing and profiling the target audience. For probing, the following questions should be asked:• Who uses the brand?• Who buys the brand, and why?• Who decides which brand is to be bought? Prof. Raghavendran Venugopal 10
  11. 11. Probing and profiling of rural consumers is done by examining the following:• Social classes and intentions• Consumer receptivity• Growing Brand Consciousness• Lifestyles• Buying roles• Children• Purchase needs• Community and the personal-value proposition• Value-for-money proposition Prof. Raghavendran Venugopal 11
  12. 12. 2. Determining Communication Objectives• Once the target market has been identified, the marketer and the communicator must decide on the desired audience response.• The ultimate response is purchase and satisfaction.• Communicators try to put ideas into the consumer’s mind, to change his attitude, and to get the consumer to act.• The response-hierarchy AICDA model best summarizes this communication strategy. Prof. Raghavendran Venugopal 12
  13. 13. AICDA Model of Communication. Awareness Interest Conviction Desire Action Prof. Raghavendran Venugopal 13
  14. 14. Thus a marketer may seek one or more of the following objectives:• To bring about awareness among a certain percentage of the target audience.• To improve knowledge to generate interest.• To strengthen the liking or preference for the product.• To persuade the consumer to buy the product. Prof. Raghavendran Venugopal 14
  15. 15. Message DesignFormulating the message require solving fiveproblems:•Message content (what to say)•Message structure (how to say it logically)•Message format (how to say it symbolically)•Context association (in what context)•Message source( who should say it) Prof. Raghavendran Venugopal 15
  16. 16. Message contentThree types of appeal:• Rational appeals: appeal to the audience’s self interest. Eg. Messages showing product quality (Ramco Asbestos Sheets)• Emotional appeals: stir up positive or negative emotions to motivate purchase• Moral appeals: appeal to the audience’s sense of what is right and proper Prof. Raghavendran Venugopal 16
  17. 17. • E g: There should be a difference of at least three years between two children• With rural consumers, functional elements have stronger influence than emotional appeal.• E g: In the case of Lux, they look for pure and mild( functional elements) and not on glamour (Aspirational element) Prof. Raghavendran Venugopal 17
  18. 18. • Language: should be simple, direct, designed in the local language. It should consider traditional and cultural aspects Prof. Raghavendran Venugopal 18
  19. 19. Message Structure• Simple , short and self explanatory• Pictorial presentation: Muscleman logo of MRF Tyres, ‘Plus’ symbol of Clinic Plus shampoo• Disadvantage is that duplicate products will cheat customers Prof. Raghavendran Venugopal 19
  20. 20. Message Format• Pictures, attractive expressions, short stories, strong colors have more influence on rural consumers• Eg: Minto fresh ad Prof. Raghavendran Venugopal 20
  21. 21. Context Association• Marketers need to pay attention to the rural environment dress styles, food habits and cultural preferences• It should draw a close identification with rural audiences. Prof. Raghavendran Venugopal 21
  22. 22. Message SourceMessages can be categorized in to three groups• Likeable source: Amir Khan in Thanda Matlab Coca-cola ad.• Trustworthy source: word of mouth, includes friends relatives, neighbors. Eg (Markfed pesticides and insecticides)• Expert source: Opinion leaders are according to the product category Prof. Raghavendran Venugopal 22
  23. 23. • E g: Mistri( mason) for construction related products like cement• Villagers from an upper class will not accept the views of Sarpanch belongs to lower caste• Women Pradhans lack mass appeal or support• Opinion leaders are rural youth, postman, school headmaster etc Prof. Raghavendran Venugopal 23
  24. 24. Communication ChannelsPersonal channels are divided into three• Advocate channels: Consist of company sales people. Eg: Dalmia Consumer Care has Rural Sales Promoters to promote non tobacco bidi Vardaan• Expert channels: Masons• Social channels : friends, family,neighbors Prof. Raghavendran Venugopal 24
  25. 25. • Non –personal channels carry messages without personal contact. Includes mass media, atmosphere, events, haats, jatras, mel as, folk media and mandis.• An atmosphere is a packaged environment that creates the buyer’s leanings towards the product purchase.• ( Chokhi Dhani), Shakti day Prof. Raghavendran Venugopal 25
  26. 26. Promotional Tools• Advertising• Sales Promotion: Three characteristics. Communication, Incentive, Invitation E g. Discount coupon on Purchase of one Tata Shaktee GC sheet. Sampling: Lifebuoy Value proposition• Direct Marketing : Direct mailers are the most used tool in rural. Prof. Raghavendran Venugopal 26
  27. 27. E g: Videocon After Sales service-1800 mechanics and engineers visit villages twice a week to assure after sales service.• Personal Selling : Most cost effective tool. E g: Project Bharat- covered 2.2crore homes. In 2002 HLL launched a direct contact programme Lifebuoy Swasthya Chetna- covered 15,000 villages in 10 states Prof. Raghavendran Venugopal 27
  28. 28. Factors in setting the Promotion Mix• Pull strategy: Use sales force and trade promotion to push the product through the channels. Established players like HLL, Britannia rely on Pull strategy• Push strategy: Regional players like anchor prefer Push strategy• Product Life cycle stage : promotional tools vary at different stages of product life cycle Prof. Raghavendran Venugopal 28
  29. 29. Creating Advertisements for Rural Audiences
  30. 30. • Understand The Mindset of Potential Customers.• Tricky, Clever ,Gimmicky Advertising doesn’t work with Rural Audience.• Combining Education with Entertainment is a good method of targeting Rural Audience.• Quickies do not register well with Rural Audience.• Employing ‘Slice Of Life ‘ Approach. Prof. Raghavendran Venugopal 30
  31. 31. Scheme of Rural Advertising Production Global Positioning: English Regional Adaptation: Four Regions of India Area-Specific Adaptation( e.g. Punjabi for Punjab)Last-Destination Adaptation: Rural dialect, Color, and Motif Prof. Raghavendran Venugopal 31
  32. 32. Rural Media Non- PersonalizedConventional Conventional Media Prof. Raghavendran Venugopal 32
  33. 33. Conventional Media• Radio• Television• Cinema• Print Prof. Raghavendran Venugopal 33
  34. 34. Non-Conventional Media• Wall Painting• Folk Media- Folk Theatre Folk Songs Folk Dances• Magic Shows• Puppet shows• Video Van Prof. Raghavendran Venugopal 34
  35. 35. Melas• Important feature of Indian rural life• To commemorate important events and to honour a deity.• 25,000 melas held annually• They have a strong commercial aspect Prof. Raghavendran Venugopal 35
  36. 36. Rural Marketers Rule• Target top 100 commercial melas• Focus should be on melas that last longer Prof. Raghavendran Venugopal 36
  37. 37. Mandis• Seen in states like Punjab and Haryana• Large network of over 7600 mandis Prof. Raghavendran Venugopal 37
  38. 38. Personalized Media• POP Dispalys(point of purchase)• Direct Mail Prof. Raghavendran Venugopal 38
  39. 39. Rural Media Prof. Raghavendran Venugopal 39
  40. 40. Communication Strategies• Launch of new product• Launch of new brand• Communication for an existing brand Prof. Raghavendran Venugopal 40
  41. 41. Prof. Raghavendran Venugopal 41