RURAL MARKETING

SEGMENTING, TARGETING, POSITIONING AND PRODUCT STRATEGY

PRESENTED BY

Muhsina Muhammed Akila Krishnan Jazmal Jabbar Abhilash.S.Nair Praveen Joseph

Introduction
With the increase in population and with the increased target groups undifferentiated products for an undifferentiated market is a thing of the past. Initially, marketers in India concentrated on segmenting the urban market only as it contributed to 75% of the revenue. With the saturation of the urban market in recent years and the growing demand in rural markets simultaneously, the need to segment the market is being felt increasingly. As economies evolve, consumer choice and requirements become more focused. This calls for Segmenting, Targeting and Positioning (STP).

Segmentation
Segmentation is the process of dividing a heterogeneous market, into several sub-markets or segments, each of which tends to be homogeneous in all significant aspects.

According to Philip Kotler, Market Segmentation os dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behaviuor and who might require separate products or marketing mixes.

Segmentation
Market Segment: A group of consumers who respond in a similar way to a given set of marketing efforts. Market Segments helps distinguish one customer profile from another within a given market. Segmentation facilitates in understanding the needs of target buyers.

Segmentation
75% of people in rural India are engaged in agriculture, but they cannot all be clubbed under one omnibus category of farmers. There are;
large farmers, medium farmers, small farmers, marginal farmers and agricultural labourers.

Their income levels, lifestyles and behaviour are different from each other.

Segmentation
Heterogeneity of the Rural Market:
There are a number of factors that display the heterogeneity of the rural market; Socio-cultural differences across regions Variation in population size and population density Difference in levels of infrastructural development Variations in literacy levels Differences in income levels and patterns of income flow Family structure

Segmentation
Degrees of Segmentation:
Mass Marketing
Considers all customers homogeneous.

Segment Marketing
Identifies customers as different groups

Niche Marketing
Serves selectively one or a few customer groups

Micro Marketing
Focuses on individuals or very small groups

Local Marketing Individual Marketing

Segmentation
Basis of Segmentation and Approaches to Rural Segmentation: Geographic Segmentation
Regions Village population and density Culture

Segmentation
Demographic Segmentation
Age & Life Cycle Family Structure Income Landownership Occupation Education and House Type Religion & Caste

Segmentation
Psychographic Segmentation
Social Class Lifestyle

Segmentation
Behavioural Segmentation
Occasions Benefits Sought User Status Usage Rate Loyalty Place of Purchase

Multi-attribute Segmentation

Segmentation
Basis of Segmentation Geographic Region Village size Density Climate Culture Age & Life Cycle Family Structure Gender Income Education etc Social Class Life Style etc Occasion Benefits Sought Place of Purchase

Demographic

Psychographic

Behavioural

Targeting

Targeting involves evaluating various segments and selecting how many and which one to target. The three aspects of targeting are evaluating, selection and coverage

Targeting
Evaluation:
- Evaluation and selection of segment: The two main factors to be considered here are: the overall attractiveness of each segment and companys objectives. - Overall attractiveness: Size of the marketing may be huge but the purchasing power is limited.

Targeting
- Company objective and resource competencies:

Selection of segment:
Selection of the segment can be made by rating them on predetermined scale(low, medium, high) in respect of the evaluation factors

Targeting
Coverage of segments:
- Undifferentiated Marketing: It takes into consideration what is common among consumers and tries to include it in the offer. Hence, it relies on mass distribution and mass advertisement. Due to this the company can afford to set its price low.

Targeting
-Differentiated Marketing: It investigates and identifies differences between segments and tries to match the market offer to the desires and expectation of each segment. This strategy results in strong identification of the company in the product category, higher sales and can get more loyal consumers.

Targeting
- Concentrated Strategy: It is important for them to have multisegment strategy rather than a single segment strategy to ensure adequate Return On Investment and to avoid the risk of change in preference of the consumers.

Positioning
Positioning is the act of designing the companys offering and image so that it occupies a distinctive place in the mind of the target segment.

Positioning
Identifying the positioning concept Product differentiation Service differentiation People Image Selection of positioning concept Developing the concept

Positioning
Communicating the concept - Deciding how many differences to promote

- Deciding which positioning to promote

Product Strategy
For transferring a marketing strategy into a marketing program the marketer needs to decide on the Marketing Mix that is to pursue the marketing objective in the rural market.

Product Strategy
Marketing Mix Challenges
4Ps (Tools) 4As (Challenges)

Product
Price Place Promotion

Acceptability
Affordability Availability Awareness

Product Strategy
Product Concepts and Classification:
A marketer should keep the following aspects ion mind while taking the products to rural markets. Products intended for rural markets should be:
1. 2. 3. 4. Simple Easy to use Visually identifiable Affordable

Product Strategy
Five Levels Of Products:
1. 2. 3. 4. 5. Core Benefit Basic Product Expected Product Augmented Product Potential Product

Product Strategy
Rural Product Categories:
1. FMCG
2. Consumer Durables 3. Agri Products 4. Services

Thank You