RURAL MARKETING

Assignment On Analytical Questions

Submitted ToProf Shashank Rashinkar

Submitted ByAnuj Mehrotra

DEFINE RURAL MARKET & MENTION TWO REASONS FOR SLOW DOWN IN RURAL DEVELOPMENT?

ural marketing involves the process of developing, pricing, promoting,

distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives.

It is a two-way marketing process wherein the transactions can be: 1. Urban to Rural: A major part of rural marketing falls into this category. It involves the selling of products and services by urban marketers in rural areas. These include: Pesticides, FMCG Products, Consumer durables, etc. 2. Rural to Urban: Transactions in this category basically fall under agricultural marketing where a rural producer seeks to sell his produce in an urban market. An agent or a middleman plays a crucial role in the marketing process. The following are some of the important items sold from the rural to urban areas: seeds, fruits and vegetables, milk and related products, forest produce, spices, etc. 3. Rural to Rural: This includes the activities that take place between two villages in close proximity to each other. The transactions relate to the areas of expertise the particular

village has. These include selling of agricultural tools, cattle, carts and others to another village in its proximity.

Rural marketing requires the understanding of the complexities. Indian agricultural industry has been growing at a tremendous pace in the last few decades. The rural areas are consuming a large number of industrial and urban manufactured products. The rural agricultural production and consumption process plays a predominant role in developing the Indian economy. This has designed a new way for understanding a new process called Rural Marketing. The concept of rural marketing has to be distinguished from Agricultural marketing. Marketing is the process of identifying and satisfying customers needs and providing them with adequate after sales service. Rural marketing is different from agricultural marketing, which signifies marketing of rural products to the urban consumer or institutional markets. Rural marketing basically deals with delivering manufactured or processed inputs or services to rural producers, the demand for which is basically a derived outcome. Rural marketing in India is not much developed there are many hindrances in the area of market, product design and positioning, pricing, distribution and promotion. Companies need to understand rural marketing in a broader manner not only to survive and grow in their business, but also a means to the development of the rural economy. One has to have a strategic view of the rural markets so as to know and understand the markets well. Reasons for slowdown Government interventions in labor, land, and credit markets: More rapid growth of the rural non-farm sector is constrained by government interventions in factor markets -labor, land, and credit -- and in output markets, such as the small-scale reservation of enterprises. Inadequate infrastructure and services in rural areas.

WHAT IS OPINION MARKETING? MENTION TWO MOST POPULAR BRANDS IN FMCG IN RURAL INDIA.

Opinion marketing is an active media user and who interprets the meaning of media messages or content for lower-end media users. Typically the opinion marketing is held in high esteem by those who accept opinions "What is opinion marketing?" expression of values professional competence

Opinion marketing obtains more media coverage than others and is especially educated on a certain issue. They seek the acceptance of others and are especially motivated to enhance their social status. In the jargon of public relations, they are called thought marketing

WHAT ARE THE MAIN REASONS FOR GROWING ATTRACTIVENESS OF RURAL MARKETS?
Main reasons are :1. Large Population: According to 2001 census rural population is 72% of total population and it is scattered over a wide range of geographical area. 2. Rising Rural Prosperity: Average income level has improved due to modern farming practices, contract farming, industrialization, migration to urban areas and remittance of money by family members settled abroad.

3. Growth in Consumption: There is a growth in purchasing power of or rural consumers. The average per capita household expenditure is Rs. 382. 4. Changing Lifestyle: Lifestyle of rural consumer changed considerably.

5. Life Cycle Advantage: The products, which have attained the maturity stage in urban market, is still in growth stage in rural market. E.g. popular soaps, skin cream, talcum powder, etc. 6. Market Growth Rate Higher than Urban: As per the survey made by NCAER the growth rate of FMCG market and durables market is higher in rural areas. The rural market share is more than 50% for products like body talcum powder, toilet soaps cooking oil, hair oil etc.

7. Rural Marketing is not Expensive: To promote consumer durables inside a state costs Rs one crore while in urban areas it will costs in million

DISCUSS THE PROBLEMS IN RURAL MARKETING.??

Challenges in Rural Marketing Though rural markets are a huge attraction to marketers, it is not easy to enter the market and take a sizeable share of the market, in the short time due to the following reasons. Low Literacy There are not enough opportunities for education in rural areas. The literacy level is as low (36%) when compared to all- India average of 52%. Seasonal Demand Demand for goods in rural markets depends upon agricultural situation, as agriculture is the main source of income. Agriculture to a large extent depends upon monsoon and, therefore, the demand or buying capacity is not stable or regular.

Transportation Many rural areas are not connected by rail transport. Kacha roads become unserviceable during the monsoon and interior villages get isolated. Distribution An effective distribution system requires village-level shopkeeper, Mandal/ Taluka- level wholesaler or preferred dealer, distributor or stockiest at district level and company-owned depot or consignment distribution at state level. The presence of too many tiers in the distribution system increases the cost of distribution. Communication Problems Facilities such as telephone, fax and telegram are rather poor in rural areas. Traditional Life Life in rural areas is still governed by customs and traditions and people do not easily adapt new practices. For example, even rich and educated class of farmers does not wear jeans or branded shoes.

WHAT ARE THE CONSTRAINTS OF COMMUNICATION IN RURAL MARKETING?

CHALLENGES IN RURAL MARKETING

There are many challenges to communication in rural. Low literacy level; poor media reach and exposure and vast, heterogeneous and diversely spread rural audiences characterized by variations in language, culture and lifestyle-all these factors pose multiple challenges to marketers looking to take their messages to the largely media-dark or media-grey areas, of rural markets. Heterogeneity and spread The communication pattern in any society is a part of its culture. No communication medium can exist in a cultural vacuum. Communicating the message to rural consumers ha posed enormous challenges to the rural marketer, because of the large numbers of consumers scatters across the country. The problem is further compounded by the heterogeneous nature of consumers there are 16 scheduled languages and 114 local vernaculars. For example, the dialect used in the Vidharbha region, in konkan region, in costal Maharashtra. Limited Media Reach

The limited reach of the mass media imposes limitations on universal communication to rural consumers. These factors lead to poor message comprehension and negligible impact, which fail to translate into consumer awareness and hence fail in generating consumer pull. Understanding the Rural Audience

It is not sufficient to understand rural communication challenges as stated above: rather, what is equally crucial is the need to understand the behavioral and psychographic characteristics of the rural audience, in order to develop an effective rural communication strategy.

DESCRIBE THE VARIOUS METHODS OF MARKETING COMMUNICATION IN RURAL MARKETING.

Rural media can be classified broadly into conventional mass, non-conventional media and personalized media. The various media vehicles are as follows: CONVENTIONAL MASS MEDIA Television Radio Press Cinema Outdoor: wall painting, hoarding NON-CONVENTIONAL MEDIA Haat and mela Folk media (puppet show, magic show) Video van Mandi PERSONALIZED MEDIA Direct mailer Point of sale(demonstration, leaflet) Word of mouth Interpersonal communication Animator

OUTDOOR MEDIA: WALL PAINTING * This medium is the most widespread form of advertising and is the favorite of the Indian rural masses, as they can view it at their leisure. Wall paintings are important because they constantly remind rural people about name and logos in addition to highlighting the key brand promise. They also reflect the vibrant economic and social life of the area.

FOLK MEDIA * Folk media consist of folk songs, folk dances and other theatrical forms, including puppetry, street theatre and magic shows, which are an intrinsic part of the culture and heritage of the land. * They are capable of communicating message about contemporary issues, topics and concerns as per the needs and demands of a changing society. * They are a face-to-face and personal form of communication. * The essential characteristics of folk media are that are interactive, repetitive and narrative Kinds of Folk Media * Folk theatre * Magic show * Puppet shows * Interactive games * Folk Theatr

EXPLAIN THE "OPINION MARKETING.?

LEADERS"

WITH

REFERENCE

TO

RURAL

Media reach is a strong reason for the penetration of goods like cosmetics, mobile phones, etc., which are only used by the urban people. Increasing awareness and knowledge on different products and brands accelerate the demand. The rural audience are however critical of glamorous ads on TV, and depend on the opinion leaders who introduce the product by using it and recommending it. Opinion leaders play a key role in popularizing products and influence in rural market. Nowadays educated youth of rural also influences the rural consumers. Rural consumers are influenced by the life style they watch on television sets. Their less exposure to outside world makes them innocent and fascinated to novelties. The reach of mass television media, especially television has influenced the buying behavior greatly Villagers place more emphasis on the experience of others who have used a product/brand to make purchase decision. Opinion leader is a person who is considered to be knowledgeable and is consulted by others and his advice is normally followed. Such opinion leaders could be big landlords, bank official, panchayath-president, teachers, extension workers etc. Examples: a) Mahindra Tractors use bankers as opinion leaders for their product. b) Asian Paints promoted its Utsav brand of paint by painting the village Sarpanchs house a few months prior to the launch if the branch to demonstrate that the paint does not peel off Thank You.