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RURAL MARKETING WITH SPECIAL

STRATEGY TO SEGMENTATION ,
TARGETING AND POSITIONING

MADE BY: BHUVNESH VIG


MBA(M&S) 3RD SEM

SEGMENTATION

PROCESS OF DIVIDING A HETEROGENEOUS MARKET INTO


SEVERAL SUB MARKETS OR SEGMENTS, EACH OF WHICH
TENDS TO BE HOMOGENEOUS IN ALL ASPECTS.
GEOGRAPHIC
DEMOGRAPHIC
PSYCHOGRAPHIC
BEHAVIORAL

GEOGRAPHIC SEGMENTATION.
Commercial

Open to new
products
West
Leisure
Simple life
Money is god
Democratic

Simplicity
Cleanliness/Hygie
ne

North
Aggressive
Dominant
Big is beautiful

Geographic
Segmentation..

South
Sensual,
rational
Diligent

Emotionally
expressive
Generous
East
Sensual
Assertive Women
Men
Socialistic,idealis
tic
Family
centric
Health
Conscious
Culturally
Conscious

VILLAGE POPULATION AND DENSITY


SIZE OF POPULATION- A MAJOR FACTOR THAT
DETERMINES THE OVERALL POTENTIAL DEMAND FOR A
PRODUCT/SERVICE.
CLASS I- POPULATION OVER 5000.
CLASS II- POPULATION BETWEEN 1000- 5000
CLASS III- POPULATION LESS THAN 1000.

CLIMATE

CLIMATIC CONDITIONS PLAY AN IMPORTANT ROLE.

EG: TALCUM POWDER IN HOT AND HUMID REGIONS, AND HEALTH


TONICS IN WINTER.

CULTURE

SOCIETY AND CULTURE PROVIDE INSIGHTS INTO THE ATTITUDES


OF PEOPLE AND THEIR NEEDS.

DEMOGRAPHIC SEGMENTATION
AGE AND LIFE CYCLE

PRE INDEPENDENCE

PAIN OF NATION BUILDING(POST INDEPENDENCE)

PAIN OF LIBERALIZATION(1985 ONWARDS)

LIBERALIZATION CHILDREN( 1990 ONWARDS)

MILLENNIUM CHILDREN( 1997 ONWARDS)

MARKETERS TARGET THE AGE GROUP OF 8 15, EXPOSED TO URBAN


MARKETS; EDUCATION;
OLD AGE AND ABOVE THE AGE OF 35- INFLUENCED BY TRADITIONAL
CUSTOMS.

DEMOGRAPHIC SEGMENTATION

FAMILY STRUCTURE

JOINT FAMILY AND LARGE FAMILIES STILL PREDOMINATE.

INCREASE IN FAMILY SIZE- INCREASE IN CONSUMPTION.

ALSO LEADS TO MULTI BRAND CONSUMPTION.

INCREASING NUCLEAR FAMILIES- GREATER DEMAND OF PRODUCTS,


ESP. CONSUMER DURABLES LIKE TV, COOKER, LPG CONNECTION.

DEMOGRAPHIC SEGMENTATION

INCOME

INCOME IS SEASONAL( POST HARVEST FOR FARMERS) OR


WEEKLY/DAILY( WAGE EARNERS) .

MULTIPLE SOURCES OF INCOME( AGRICULTURE, DAIRY ETC)

AGRICULTURAL INCOME IS NOT TAXABLE.

DEMOGRAPHIC SEGMENTATION

LANDOWNERSHIP

55% OF INCOME IN RURAL AREAS COMING FROM AGRICULTURE.

MARGINAL FARMERS- HOLDING UPTO 1 HECT

SMALL FARMERS- 1-2 HECT

SEMI-MEDIUM FARMER- 2-4 HECT

MEDIUM FARMER- 4- 10 HECT

LARGE FARMER- 10 HECT AND MORE

DEMOGRAPHIC SEGMENTATION

EDUCATION AND HOUSE TYPES

EDUCATION: ILLITERATE, BELOW SSC, SSC/HSC, COLLEGE

HOUSES: PUCCA, SEMI -PUCCA, KUCCHA.

RELIGION AND CASTES

DIFFERENCES IN RELIGION AND CASTE VISIBLE IN TERMS OF


SETTLEMENT PATTERNS IN VILLAGES.

VILLAGE SHOPS ARE DEMARCATED ALONG SIMILAR LINES.

DEMOGRAPHIC SEGMENTATION

OCCUPATION

FARM BASED OCCUPATIONS.

CULTIVATORS: FARM OWNERS, MARGINAL FARMERS.

AGRI AND NON AGRI LABOUR.

POULTRY, DAIRY

SALARY EARNERS: DOCTORS, TEACHERS.

TRADERS, MICRO ENTREPRENEURS.

PSYCHOGRAPHIC
SEGMENTATION
IN RURAL INDIA.
PSYCHOGRAPHICS INCLUDE PERSONALITY TRAITS, LIFESTYLE &
VALUE SYSTEM.

BEHAVIORAL SEGMENTATION

OCCASIONS
BENEFITS SOUGHT
USER STATUS
USAGE RATE
LOYALTY STATUS
PLACE OF PURCHASE

REQUISITES FOR EFFECTIVE


SEGMENTATION
MEASURABLE
ACCESSIBLE
DIFFERENTIABLE
SUBSTANTIAL
EXAMPLE:- BAJAJ AUTO LTD

DEGREES OF SEGMENTATION

1.MASS MARKETING:

MOST MARKETERS USED THIS IN RURAL MARKETS


ALL CONSUMERS BEING TREATED THE SAME
FIRST STEP IN MARKETING-LESS MARKET
KNOWLEDGE
EG 2;
COLGATE PALMOLIVE SUCCESSFULLY MARKETED
SAME TOOTHPASTE TO ALL CONSUMERS IN
URBAN AND RURAL MARKET. RECENTLY THEY
INTRODUCED CIBACA WHEN THE RURAL MARKET
BECAME MORE DEMANDING

2.SEGMENT MARKETING

IDENTIFIES CUSTOMERS AS DIFFERENT GROUPS


EG1 :COLGATES 10GM SACHE IN 2000 AIMED RURAL CONSUMER
EG2:LGS LOW COST TELEVISION SAMPOORNA (1999)

3.NICHE MARKETING

SERVES SELCTIVELY ONE OR A FEW CUSTOMER GROUPS


NICHE MARKETING IS USED WHEN THERE IS A SMALL GROUP WITH
SPECIFIC NEED .OUR RURAL AMRKET IS NOT MATURED TO THIS
LEVEL
EG: HERO HONDA BIKES, NOKIA MOBILES

4.MICRO MARKETING

FOCUS ON INDIVIDUALS OR VERY SMALL GROUPS


TO SATISFY A PARTICULAR TASTE OR NEED
EG: DABUR LAUNCHED ANMOL,A MUSTARD AND AMLA BASED HAIR
OIL TO TARGET RURAL CONSUMERS IN NORTHERN MARKETS WHO
USED LOOSE MUSTARD OIL.50 ML PACK WORTH RS 10.
MICROMARKETING IS DIVIDED INTO 2

TARGETING

TARGETING INVOLVES EVALUATING AND SELECTING VARIOUS


SEGMENTS.
STEPS
1. EVALUATION AND SELECTION OF SEGMENTS
2. COVERAGE

EVALUATION AND SELECTION


WHILE EVALUATING MARKET SEGMENTS, TWO BROAD FACTORS
ARE CONSIDERED:
1.OVERALL ATTRACTIVENESS OF EACH SEGMENT

SIZE, GROWTH RATE, ACCESSIBILITY,


PROFITABILITY, LOW RISK
2. COMPANIES OBJECTIVES AND RESOURCE COMPETENCIES.

LONG TERM AND SHORT TERM OBJECTIVES


OF COMPANIES
ITS RESOURCES AND CAPABILITIES
SHOULD ALSO CONSIDERED

COVERAGE STRATEGIES
1.

UNDIFFERENTIATED MARKETING
IT TAKE INTO CONSIDERATION WHAT IS COMMON REQUIREMENTS
AMONG CONSUMERS, AND TRY TO INCLUDE IT IN THE OFFER
EX : MEDIMIX---CLAIMS IT AS A BEAUTY CARE AYURVEDIC FAMILY
SOAP.

2. DIFFERENTIATED / TARGETED MARKETING


DIFFERENTIATED MARKETING STRATEGY INVESTIGATES AND
IDENTIFIES THE DIFFERENCE BETWEEN SEGMENTS AND TRIES TO
MATCH THE MARKET OFFER TO THE DESIRE AND EXPECTATIONS OF
EACH SEGMENT.
EX : TRACTORS 25 - 30HP FOR SMALL/MARGINAL AND 50HP FOR
LARGE FARMERS

COVERAGE STRATEGIES
3. CONCENTRATED STRATEGY
- CONCENTRATE ON SINGLE SEGMENT, ALSO KNOWN AS
NICHE MARKETING
- RISK OF CHANGING PREFERENCE OF CUSTOMERS

HUL DOMINATE THE MASS MARKET IN THE


RURAL WITH A SERIES OF NICHE BRANDS,
EACH AIMED AT SMALL SECTION OF
CUSTOMERS.
EX-LIFEBUOY, LIFEBUOY ACTIVE, LIFEBUOY
GOLD

POSITIONING

IT IS THE ACT OF DESIGNING THE COMPANYS OFFERING


AND IMAGE SO THAT IT OCCUPIES A DISTINCTIVE PLACE IN
MIND OF THE TARGET SEGMENT.
IT SERVES AS A PLATFORM FOR THE BRANDS TO REACH
TARGET CUSTOMERS.

POSITIONING INVOLVES

IDENTIFYING THE USP OF THE PRODUCT AS WELL AS THAT


OF THE COMPETITORS.
SELECTING THE DIFFERENCES
COMPETITIVE ADVANTAGE.

THAT

HAVE

GREATER

COMMUNICATING THOSE ADVANTAGES TO THE TARGET


CUSTOMERS.

IDENTIFYING THE POSITIONING


CONCEPT

THE MARKETER HAS TO UNDERSTAND THE CONSUMERS


MOTIVE WHEN HE PURCHASES A PRODUCT. THIS WILL HELP
IN IDENTIFYING THE POSITIONING THEM. THE MARKETER
CAN ADOPT SEVERAL APPROACHES IN POSITIONING THE
PRODUCT IN ORDER TO DEVELOP OR ENHANCE ITS VALUE
TO CUSTOMER.

PRODUCT DIFFERENTIATION
PRODUCTS CAN BE DIFFERENTIATED ON THE BASIS OF
ATTRIBUTES LIKE FORM, FEATURES, DURABILITY AND
QUALITY.
EXAMPLE- CHOTA PEPSI, HERO HONDA(DAWN)

A GLANCE AT RURAL INDIA:

* 46 PERCENT OF SOFT DRINKS


* 49 PERCENT OF MOTORCYCLES
* 59 PERCENT OF CIGARETTES
* 18 MILLION TV SETS
* 50 PERCENT OF 2 MILLION BSNL MOBILE
CONNECTIONS
* 53 PERCENT OF FMCG PRODUCTS
* 59 PERCENT OF CONSUMER DURABLES ARE SOLD IN
RURAL INDIA.

SELECTING THE POSITIONING CONCEPT.

MARKETERS HAS TO SELECT A POSITIONING CONCEPT THAT


SERVES AS A BRIDGE BETWEEN THE PRODUCT AND THE
TARGET CUSTOMERS.
CRITICAL FACTORS THAT SHOULD BE KEPT IN MIND ARE:
< ATTRACTIVENESS-: DOES IT PROVIDE VALUE TO THE
CUSTOMERS?
< DISTINCTIVENESS-: IS IT DIFFERENT FROM THAT OF THE
COMPETITORS?