This document discusses strategies for rural market segmentation and targeting. It begins by classifying rural consumers into affluent, middle class, and poor groups. It then discusses why companies target rural markets due to increasing consumer durable penetration and the emergence of women customers. The document outlines the STP approach to selecting and attracting market segments - segmenting, targeting, and positioning. It then discusses degrees of segmentation from mass to niche to micro marketing. Various bases for segmentation like geographic, demographic, psychographic, and behavioral factors are also presented.

1. MODULE 3

2. CLASSIFICATION OF RURAL CONSUMERS
 The Affluent Group
 The Middle Class
 The Poor

3. WHY COMPANIES GO RURAL ???
 Penetration levels of consumer durables in
the rural sector
 Emergence of women customers

5. SELECTING AND ATTRACTING MARKETS
 Involves three key decisions, viz., segmenting,
targeting and positioning (STP).
 Segmenting is the process of dividing or
categorizing market into different groups based on
one or more variables.
 Targeting is selecting the market segments, which
can be served efficiently and profitability. It is,
deciding on market coverage strategies.
 Positioning is a market attraction strategy, which
involves placing the brand in the minds of the
customers in the target market.

6. DEGREES OF SEGMENTATION

7. MASS MARKETING
 Entire market treated as homogenous
 mass production and mass distribution

8. SEGMENT MARKETING
 buyers differ in their needs, wants, demands
and behaviors
 need for segment marketing arises when:
Consumers have become more diverse,
sophisticated and choosy.
Competition has become tough

9. NICHE MARKETING
 Niche is a very small group with a distinctive
set of traits, who seek a special combination
of benefits.
 Niche marketing identifies special sub-
groups within larger segments and offers
different products and services.

10. MICRO MARKETING
 Micro Marketing involves tailoring products
and programs to suit the tastes of specific
locations and individuals.
 Includes local marketing and individual
marketing.

11.  Local marketing: It involves and programs to
suit the tastes of specific locations and wants of
local customer groups on a geographical basis.
 Individual marketing: Individual marketing is
customized marketing or one-to-one marketing.
Tailoring units, hotels, tourist operators and
doctors provide individualized services. Building
contractors build houses or flats to the specific
requirements of customers.

12. BASES OF SEGMENTATION
Geographic
Demographic
Psychographic
Behavior

13. GEOGRAPHIC
 Zone
 Density
 Climate
 Culture

14. DEMOGRAPHIC SEGMENTATION
 Age and Life-cycle
 Gender
 Marital Status
 Family Size
 Income
 Religion

15. DEMOGRAPHIC SEGMENTATION

16. PSYCHOGRAPHIC SEGMENTATION
 Social class
 Life style
 Personality

17. BEHAVIOR SEGMENTATION
 When do people buy? Occasions
 Why do people buy? Benefits sought
 Do they buy? Once? More? User status
 How much do they buy? Usage rate
 Do they repeat the buy? Loyalty status
 Where do they buy? Place-retail outlet.
 What do they buy? Products possessed.

18. TARGETTING
 Targeting involves evaluating the various
segments and selecting how many and
which ones to target.
Three aspects in targeting are:
 Evaluation
 Selection
 Coverage

19. EVALUATION OF SEGMENTS
(a) Profitability
 Sales volumes
 Distribution costs
 Promotion costs
 Sales revenues
 Profit margins

20.  (b) Attractiveness
 (c) Growth rate
 (d) Company objectives
 (e) Limitations
 (ii) Selection of Segments
 (iii) Coverage of Segments

21. THREE COVERAGE STRATEGIES TO SUIT THEIR
SEGMENTATION APPROACHES.

22.  (a) Undifferentiated strategy
 (b) Differentiated strategy
 (c) Concentrated strategy

23. CHOOSING A COVERAGE STRATEGY

24. MULTIVARIABLE SEGMENTATION
THOMPSON RURAL INDEX
 Developed by Hindustan Thompson
Associates Ltd.
 They compiled a data out of 335 districts,
based on 26 variables
 it has strong correlation with 10 selected
agriculture-related variables .

25.  Agricultural laborers
 Gross cropped area
 Gross irrigated area
 Area under non-food crops
 Pump sets
 Fertilizer consumptions
 Tractors
 Rural credit
 Rural deposits
 Villages electrified

27. POSITIONING
 The act of finding a place in the minds of
consumers and locating the brand therein.
 Involves three tasks—
1. Identifying the differences of the offer vis-a-vis
competitors offers.
2. Selecting the differences that have greater
competitive advantage.
3. Communicating such advantages effectively to
the target audience.

28. IDENTIFY DIFFERENCES
 (a) Product differentiation
 (b) Services differentiation
 (C) People
 (d) Image

29. SELECTING THE RIGHT DIFFERENCES
 Attractive — Does it provide value to the
customer?
 Distinctive — Is it different from that of its
competitors?
 Preemptive — Is it very difficult for
competitors to copy it‟?
 Affordable — Can buyers pay for it?