The document discusses segmenting rural consumers and the bases for rural market segmentation. It identifies that rural consumers are heterogeneous and segmentation is needed. It outlines socioeconomic, geographic, psychographic, and consumer behavior factors for segmentation. The Thompson Rural Market Index is also summarized, which assesses rural market potential across 26 factors for 355 districts in India.

1. SEGMENTING RURAL CONSUMERS
Rural consumers are heterogeneous and so
Segmentation is required
Reasons for market Segmentation
• Understanding the needs of consumers
• Better position to spot marketing opportunities
• Allocation of marketing Budgets
• Meeting the competition effectively
• Effective marketing programmes
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2. SEGMENTING RURAL CONSUMERS
• Choosing of Advertising media
• Increasing sales volume
• Benefits the consumers
• Better utilization of marketing resources
• Discovering marketing opportunities
• Specialized marketing
• Provision of Information
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3. SEGMENTING RURAL CONSUMERS
• Evaluation of marketing activities
• Marketing efficiency
• Formulation of marketing mix
• Making of suitable adjustments
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4. SEGMENTING RURAL CONSUMERS
Requirement for Effective Segmentation
• Substantiality (Sufficiently large)
• Measurability (Changes in the behaviour)
• Accessibility (Promotion and distribution possible)
• Representability(Individuality)
• Effective demand
• Responsiveness ( For Changes)
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5. SEGMENTING RURAL CONSUMERS
BASES FOR SEGMENTATION
I Socio economic factors
• Sex- Male, Female
• Age- Children, young, adults, old
• Income- High, middle, low
• Education level- educated, semi educated,
uneducated
• Size of family- large, medium, small
• Caste and Religion
• Business or Profession
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6. SEGMENTING RURAL CONSUMERS
BASES FOR SEGMENTATION
II Geographical factors
• Rural
• Urban
• Regional
• State
• National
• International
• Plain
• Hot
• Cold
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7. SEGMENTING RURAL CONSUMERS
BASES FOR SEGMENTATION
III Psychographic or Personality factors
• Thinking
• Attitudes
• Buying motives
• Prestige and status
• Usefulness
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8. SEGMENTING RURAL CONSUMERS
BASES FOR SEGMENTATION
IV Consumer Behaviour factors
• Usage rate: non users, light users, middle users,
heavy users
• Buying motives: quality of goods, reliability of goods,
prestige
• Brand loyalty
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9. SEGMENTING RURAL CONSUMERS
Rural consumers are heterogeneous as far as
• Literacy
• Economic condition
• Life style
• Buying behaviour
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10. BASES OF SEGMENTATION OF RURAL MARKETS
I GEOGRAPHIC SEGMENTATION
a. Climate
Favourable climate- Areas are prosperous
Unfavourable climate- Areas are handicapped
b. Level of Irrigation
Irrigated areas- prosperous
Dry land areas- are not
c. Nearness to feeder town
Closer to feeder town- frequent visit
Away from feeder town- rare visit
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11. II DEMOGRAPHIC SEGMENTATION
a.Population- Spread or Concentrated
b.Age of rural population- youth more buying
c.Literacy level
d.Income of rural people-
Regular Income group
Seasonal Income group
III BUYING BEHAVIOUR SEGMENTATION
a.High priced branded goods
b.Low priced non branded goods
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12. IV SOCIOLOGICAL FACTORS
a. Landlord
b. Small farmers
c. Tenants
V Occupational Factors
a. Farmers
b. Craftsmen
c. Artisans
d. Salaried employees
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13. MARKETING MIX FOR RURAL MARKETS
1.Segmentation and Targeting
Rural consumers are not homogeneous
2.Product Mix
Smaller Packages
Sturdy
Utility products
3.Price Mix
Low cost
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14. 4. Distribution Mix
It should be strong because
less population density
poor transport and communication
scattered outlets
5. Promotion Mix
TV
Radio
Print media – Not advisable
Films with mobile vans
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15. RURAL MARKETING STRATEGIES
• Fertilizers
• Agro chemicals
• Seeds
• Feeds
• Tractors and Tillers
• Irrigation Equipments
• Other farm machinery and inputs
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16. RURAL MARKETING STRATEGIES
1. Product Strategies
2. Price Strategies
3. Physical Distribution Strategies
4. Promotion Strategies
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17. 1.PRODUCT STRATEGIES
It is a company plan for marketing its
products.
The various issues involved in the product
strategy are
• Product line and product mix
• Branding
• Packaging
• Product Warranties
• After Sales Service
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18. PRODUCT LINE AND PRODUCT MIX
• Different Products
• Different Models
• Different Product Designs
• Sturdy Products
• Products of high utility
• Colour, shape, Safety, Size
• Quality of performance
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19. BRANDING
• National Brand
• Regional Brand
• Local Brand
• Imitation products
• Rin- Run
• Nirma- Narima
• Lifebuoy- Liteboy, Lifejoy
• Fair and Lovely- Friends and Lovely
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20. BRANDING- Popular in Rural Area
• Nirma girl in frock
• Dettol sword
• Aravind Mills Ruff and Tuff
• HUL Lifebuoy
• Britannia Tiger
• Tata Sonata
• Godrej toothpaste
• Dalda Vanaspathi
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21. PACKAGING
 Small Packets
 Sachets
 Simple packets
 Polythin packets
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22. PRODUCT WARRANTY
Consumer durables
AFTER SALES SERVICE
Consumer durables
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23. 2. PRICING STRATEGIES
No costly products
Affordable price
Quality commensuration valid
Eveready
Hero Honda CD 100- More mileage and
less maintenance
Rajdooth
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24. 3.DISTRBUTION STRATEGIES
Mainly distribution through the distributors in
the large towns
Efficient distribution system
 Covering villages with a population of 2000 and
above
 Use of cooperative societies
 Use of PDS
 Utilization of Petrol pumps
 Use of agricultural users
 Use of sandys, jathras and melas
 Use of Vans
 Joining of two or more marketers
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25. 4.PROMOTION STRATEGIES
 Word of mouth
 Opinion leaders
 TV, Radio and Cinemas
 Press media
 Hoardings and Wall paintings
 Puppet shows and street plays
 Personal selling and Salesmanship
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26. PROMOTION TOOLS IN THE RURAK MARKET
 TV- Doordarshan and Regional channels
 Radio- AIR, Vividha Bharathi
 Cinema- Tent Cinema and Temporary cinema
houses
 Newspaper- Local
 Packaging- Local language communication
 Outdoor Print- Stones, Trees
 POP displays- PDS, local retail outlets
 Sales force- Door to Door
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27. PROMOTION TOOLS IN THE RURAL MARKET
 Exhibition and Demo- Fairs, Sandy's, Mandis,
Melas
 Price offs- Mansoon season
 Event sponsoring- Puppet shows, folk events,
magic shows, village sports.
 Free Magazine- Agricultural
 Community Relationship- Free Medical camps,
Participation in village festivals
 Infrastructure- Construction of rural roads, dams,
bridges.
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28. THOMPSON RURAL MARKET INDEX
Attempt to assess the potential of rural markets
has been made by Hindustan Thompson
Associates Ltd.
Districts considered : 383.
Rural Market Index for : 355 districts.
Factors considered for Rural Market Index : 26.
I. Demographics
1. Area of districts in Sq. Kms.
2. Population- Rural in numbers
3. Males- in numbers
4. Females- in numbers
5. Density per Sq. Kms.
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29. THOMPSON RURAL MARKET INDEX
6.Percentage distribution of population by
population strata
7.Number of Villages
8.Percentage distribution of villages by population
strata
9. Literates – Rural (in numbers)
10. Percentage of literacy
11. Literacy males (in Numbers)
12. Literacy females (in Numbers)
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30. THOMPSON RURAL MARKET INDEX
II Occupation Pattern
13. Cultivators (Total Numbers)
14. Agri-labourers
15. Non- Agri-labourers
III Agriculture Related data
16. Gross crop area in hectares
17. Gross Irrigated area in hectares
18. Area under non-food crops in hectares
19. Average size of operational holdings in hectares
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31. THOMPSON RURAL MARKET INDEX
IV. Agricultural Inputs data
20. Pump sets and Tube well (Numbers)
21. Fertilizers consumption in metric tonnes
22. Number of Tractors
V. Rural Electrification Data
23. Percent of village electrified
VI. Commercial Banks Data
24. Rural Branches number
25.Deposits in Rupees
26. Advances in Rupees
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32. THOMPSON RURAL MARKET INDEX
After collecting the data, statistical correlation
analysis was conducted with 10 selected variables
related to agriculture. Following are those
variables.
1. Agricultural labourers
2. Gross cropped area
3. Gross irregated area
4. Area under non-food crops
5. Pump sets
6. Fertilizer consumption
7. Tractors
8. Rural credit
9. Rural deposit
10.Villages Electrified 32

33. THOMPSON RURAL MARKET INDEX
Based on the statistical analysis the districts have
been classified as A B C D and E class markets.
Classification of Markets
Class of Markets Index Range No.of Districts Percentage of Mkt
A 60 to 100 22 17.80
B 40 to 59.9 39 20.50
C 30 to 39.9 54 20.40
D 20 to 29.9 86 23.00
E Below 20 154 18.30
TOTAL 355 100
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34. THOMPSON RURAL MARKET INDEX
40% of the districts have high potential (A&B)
20% of the districts have medium potential (C)
40% of the districts need more time to
develop(D&E)
This Index can be used for evolving strategies for
marketing agricultural inputs and consumable and
durable items.
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35. THANK YOU
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