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ICT IN M ARKETING

Media for rural marketing


Indian agricultural industry has been marketing strategies and to avoid unethical
Media Rural growing at a tremendous pace in the last practices, which distort the marketing
few decades. The rural areas are consuming environment. Many of the inputs used for
marketing uses both a large number of industrial and urban production process have implications for
manufactured products. The rural food, health and environmental sectors.
kinds of media i.e. agricultural production and consumption Rural marketing needs to combine concerns
process plays a predominant role in for profit with a concern for the society,
the traditional developing the Indian economy. This has besides being titled towards profit. Rural
designed a new way for understanding a market for agricultural inputs is a case of
media as well as the new process called Rural Marketing. The market pull and not market push. Most of
concept of rural marketing has to be the jobs of marketing and selling is left to
modern media. distinguished from Agricultural marketing. the local dealers and retailers. The market
Marketing is the process of identifying and for input gets interlocked with other markets
Rural marketing satisfying customers needs and providing like output, consumer goods, money and
them with adequate after sales service. Rural labour. The importance of rural marketing
requires the marketing is different from agricultural can be understood from the fact that today
marketing, which signifies marketing of rural modern inputs i.e. diesel, electricity,
understanding of products to the urban consumer or fertilisers, pesticides, seeds account for as
institutional markets. Rural marketing much as 70% of the total cash costs and
the complexities and basically deals with delivering manufactured 23% of the total costs incurred by the
or processed inputs or services to rural farmers in the Green Revolution areas.
this article reviews producers, the demand for which is basically Further the percentages were higher at 81%
a derived outcome. and 38% for small; farmers owning 1.85
some of the key Rural marketing scientists also term it as hectares of land.
developmental marketing, as the process of
issues. rural marketing involves an urban to rural Strategic aspects
activity, which in turn is characterised by Rural marketing in India is not much
various peculiarities in terms of nature of developed there are many hindrances in the
market, products and processes. Rural area of market, product design and
marketing differs from agricultural or positioning, pricing, distribution and
consumer products marketing in terms of promotion. Companies need to understand
the nature of transactions, which includes rural marketing in a broader manner not only
participants, products, modalities, norms to survive and grow in their business, but
and outcomes. The participants in case of also a means to the development of the rural
Rural Marketing would also be different economy. One has to have a strategic view
they include input manufacturers, dealers, of the rural markets so as to know and
farmers, opinion makers, government understand the markets well. In the context
agencies and traders. The existing approach of rural marketing one has to understand
to the rural markets has viewed the markets the manipulation of marketing mix has
as a homogeneous one, but in practice, there to be properly understood in terms of
are significant buyer and user differences product usage. Product usage is central to
across regions as well as within that requires price, distribution, promotion, branding,
a differential treatment of the marketing company image and more important farmer
problems. These differences could be in economics, thus any strategy in rural
S.Gopalakrishnan Iyer terms of the type of farmers, type of crops marketing should be given due attention
India and other agro-climatic conditions. One has and importance by understanding the
gopal@ei-india.com to understand the market norms in product usage, all elements of marketing mix
agricultural input so as to devise good can be better organised and managed.

20 i4d | January 2006


NanaSala Vouchers
The ‘NanaSala Dahasak’ (1000 NanaSalas) Project of ICT Agency Already in its short existence, the voucher programme has made
which is being implemented under the patronage of H.E. the positive impacts on the people in the target areas. In Moneragala,
President, is well under way with 150 Centers already operational. the Nanasala owners speak of people from the community doing
The ICTA nevertheless understands that the subject of Information CAD drawings and chatting with relatives who are in foreign
Communication Technology is new to most of Sri Lanka’s countries. In Badulla, NanaSala owners help people find jobs
population, especially in the rural areas, and that they may not be through the government’s JobsNet website and receive e-Learning
fully aware of the benefits of ICTs. They may even be un-informed in certain A and O level subjects. In Hambantota, people come to
of the services offered at the NanaSala centres. Even for the segment the NanaSala to learn English through e-Learning software, access
of population that understand these benefits, and also know where government services through the web, access market prices and do
the closest NanaSala is, the affordability factor may dissuade them typesetting and desktop publishing. NanaSala owners, who
from using these services. understand their communities better than any outsider, are coming
In order to address this affordability gap, the ICT Agency has up with creative and innovative ways to popularise the centres by
begun an innovative voucher program, which is currently being mobilising segments of their communities through ICT-learning
administered by Pricewaterhouse Coopers Sri Lanka. Customers groups called ‘e-societies’, visiting nearby schools and giving free/
can visit the NanaSala, ask for a Rs. 50 voucher and use a computer low-cost computer classes at the centres.
or the Internet for the exchange of this voucher. The owner is then The ‘digital divide’ between the rural areas and urban areas,
reimbursed by ICTA for the cost of the voucher, also providing a the poor areas and affluent areas is striking in most countries, both
source of income for the owners. Currently, the awareness and developing and developed. This divide leads to an opportunity
voucher programmes are in operation the NanaSala: Rural gap where rural populaces are denied some of the prospects that
Knowledge Centres in 3 districts, Hambantota, Moneragala and are available to those in urban areas and many a concept has been
Badulla, and will be extended to the rest in the near future. ICTA proposed and actioned to bridge these gaps. The ICT Agency is
has also obtained the services of SEEDS - an institution with executing some of the more promising ideas - with the voucher
extensive experience in communicating complex concepts in rural programme being the front runner among them - to ensure that
areas - to create awareness of this voucher programme. SEEDS are the digital divide, in Sri Lanka at least, becomes a thing of the past,
currently running outdoor advertising campaigns with village and every student, entrepreneur or any citizen, regardless of
meetings in areas near the NanaSala centres. location, gets an opportunity to reach their fullest potential.
Source: ICTA, Sri Lanka

Client and location specific promotion market research should be undertaken to assess the buyer’s needs
Increasing specialisation in the farming sector has marketers to this and problems so that continuous improvements and innovations
strategy. The marketer under this strategy has to design location can be undertaken for a sustainable market performance.
and carry out farmer specific promotional campaigns. Developmental marketing
Recommending the use of the products at micro level would result
in increasing productivity of the input and thereby increasing the Developmental marketing refers to taking up marketing programmes
image and the sales of the product can raise the input demand for keeping the development objective in mind and using various
rural markets. Joint or co-operative promotion A personalised managerial and other inputs of marketing to achieve these objectives.
approach is required under this strategy of rural marketing. Under A prerequisite for developmental marketing is Development Market
this approach there is a greater scope for private sector and farmer Research, which can be termed as the application of marketing
organisation to get into input supply and especially into retail research tools and techniques to the problems of development. The
distribution, as it is a low risk activity. research tools of marketing like product testing tests marketing,
concept testing and media testing or message test and focus groups
Bundling of inputs are used in this work. Developmental marketing has started to find
In order to reap the benefits of, the economies of the scale a rural its roots in India where researchers are using focus groups and
marketer has to resort to bundling of inputs. ‘Bundling of Inputs’ products tests to learn more about rural markets and products needs
is the process by which the marketer would provide a bundle of and USPs (Unique Selling Proposition) can be tried out. Media
products to the retailer so that he can meet the requirements of the rural marketing uses both kinds of media i.e. the traditional media
farmers in one place. The village level co-operatives and other agencies as well as the modern media. The traditional media includes puppetry,
can play an effective role in the distribution of inputs. Establishing drama, folk theatre e.g. tamsaha (role play of different characters by
linkages with financial agencies and other input sellers can help one or two persons), nautanki (short skits with songs and poetry),
greatly as the bank credit plays an important role by making the street plays, folk songs, wall paintings and proverbs. Marketer uses
purchase possible. Management of Demand A marketer apart from traditional media as it is more accessible, personalised, familiar and
maintaining good supplies in terms of quality and quantity also has carries a high potential for change. The modern media includes the
to focus on the demand side of the operations also. Continuous print media, the television and the radio USPs.

January 2006 | www.i4d.csdms.in 21


Some of the USPs of the companies engaged in rural marketing
are given below. Mahindra Tractors- ‘Mera Desh Mera Gaon’ (My
NepaLinux
country my village) Tafe Tractors-‘Grameen Bharat ki Dhadkan’ NepaLinux is a Debian and Morphix based GNU/Linux
Tafe ka Massey Ferguson(The heart beat of rural India its Tafe’s distribution focused for Desktop usage in Nepali language
Massey Ferguson) Swaraj Tractors- ‘Pragati aur Khush-hali ke liye’ computing. It contains applications for Desktop users like:
(For development and happiness) Escorts- ‘Nayi technique ke sath, OpenOffice.org, Nepali Gnome Desktop, Nepali input systems
Bharosa Jeevan bhar Ka’ (A life long trust with new techniques) etc. Since January 2004, Madan Puraskar Pustakalaya, the principal
Eicher-‘Ghazab ki takat, ghazab ki shaan’ (Incredible strength, archive of books and periodicals in the Nepali language, undertook
Incredible pride) Sun Seeds- ‘Grow with Sun’ ICI Karate Insecticide- the Nepal component of the 30-month long PAN Localisation
‘Keedon ka Maha-kaal, Phasal Ka Pehredaar’ (Insects enemy protector Project (www.PANL10n.net), a multi-nation localisation project
of the crops). Pesticide India- ‘Desh ke liye Phasal Anek, Keedon ke being conducted in Afghanistan, Bangladesh, Bhutan, Cambodia,
Naash ke liye Foratox Sirf Ek’ (Numerous crops for the country but Laos, Nepal, and Sri Lanka, with the support of International
only for destroying pests i.e. Foratox). Thus the companies use Development and Research Centre (IDRC), Canada. This project
different formats to influence the target audience in order to produce includes a Nepali GNU/Linux distribution ‘NepaLinux’
the desired results. Extension Services. There are several limitations comprising of localised GNOME, OpenOffice.org, Mozilla suite,
of rural marketing in the Indian context, this leads to the need for and other utilities that include Nepali Spellchecker, Thesaurus,
extension services to supplement the efforts of the firms engaged in Nepali Unicode support, etc. This distribution can be used in
rural marketing. The various extension services could include credit Nepali as well in English environment.
facilities, competitions among the farmers, educating the farmers Though NepaLinux is basically a live CD it can also be installed
regarding the appropriate agricultural practices, etc. Extension in the computer. The work for the installation process has been
services would thus play a crucial role in the development of rural facilitated through the European Commission supported Bhasha
marketing in India. Sanchar Project (www.bhashasanchar.org) which is led by the Open
University (UK). NepaLinux is a Free/Open Source Software
Ethics in Business (FOSS), in which the source code is open and the users have the
Ethics occupies a special place in rural marketing, and has been at freedom to use, study, modify according to one’s needs and
the heart of all the transactions whether cash or kind. In order to redistribute it. NepaLinux, being a Free/Open Source Software,
make a lasting impact on the rural clients, the firms need to built a does not charge for its software unlike proprietary software, which
trustful relationship and that is possible by no other means but cost a lot and also do not allow the users to study, modify, or
only by ethical conduct. redistribute. The official website for NepaLinux is
www.nepalinux.org. Other available places to look for assistance
Partnership for sustainability are: Madan Puraskar Pustakalaya support forum (www.mpp.org.np/
There is a need to build partnership with rural clients for a sustainable forum), NepaLinux Mailing List (www.nepalinux.org/lists),
business relationship and sustainable marketing relationship. NepaLinux Wiki (www.nepalinux.org/wiki), IRC for realtime
There should be a long-term relationship between the firms and queries (#nepalinux on irc.freenode.net). The web space for the
farmers for agro business projects, which are risky, long drawn and hosting of NepaLinux for the users inside Nepal has been provided
technical in nature. Partnership is required in rural marketing by Everest Net. Information regarding the download of
business so as to award distributorship to local groups and individuals NepaLinux for users outside Nepal is available on the website.
employing locals, staff secondment in local projects, preferential
Digital cinema – Virtual multiplexes
purchase of local product, training to locals and discount on product
supplies in some areas. Rural marketing firms can work with NGOs When UFO (United Film Organizers) Digital Cinema Systems
also because NGOs have better linkages and understanding of the was launched, they had promised that their systems will provide
local communities and their problems. Nagarjuna fertilisers and scheduling flexibility to their Exhibitors. The exact implication
Chemicals Ltd has set up an agro output division which is known of this statement is now been reflected in theatres. With zero
as FMS (Farm Management Service) which provides packages to investment in print costs, distributors are using UFO Digital
the farmers right form soil testing to post harvest stage of the crop Cinema System to convert single screen cinemas into virtual
system. The FMS aims at enhancing farm productivity optimising multiplexes. In a manner similar to multiplexes where multiple
cost of production, improving economic returns to farmers films are exhibited on a single screen. Single cinema screens like
and enhancing the cost of production and enhancing the Central Plaza in Mumbai, Mahalaxmi in Surendranagar and Vinay
produce quality. in Adipur are getting released with simultaneous screening of Ek
Ajnabee and Kalyug. Similarly Kalyug and Apharan are being
Conclusion released simultaneously in Bangbasi in Howrah, Central Plaza in
Rural marketing in India has still a long way to go, rural marketers Mumbai, Durgapur in Durgapur, Manoj in Asansol, Paradise in
have to understand the fact that rural marketing in India has a Porbandar and Rakhi in Salkia. This is possible solely due to UFO
tremendous potential in our country. Rural marketers should Digital Cinema’s unique capability of hosting 8 to 10 films at a
understand this fact and try to tap the huge untapped potential in time on their servers for exhibition in their theatres.
our country.  More information can be found at www.ufomoviez.com

22 i4d | January 2006

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