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MARKETING MANAGEMENT II

GROUP ASSIGNMENT
RURAL MARKETING
SUBMITTED TO:
PROF. JAYESH AAGJA
SUBMITTED BY:
KIRAN JAIN 134231
KUNTAL GUPTA - 134232
MAHESH BHANSALI 134233
MANISH SAKARIA 134235
MAYANK DEMBLA - 134236
RURAL
MAR KETING
Defi niti on:-
Rural marketing can be defined as a function which manages all those activities in asserting,
stimulating and converting the purchasing power of rural people into an effective demand for
specific products and services and there by achieving the goals of the organisation.
Rural areas:-
Rural areas are large and isolated areas of an open country with low population density a
country side refers to rural areas that are open.
Meaning of Rural marketing:-
Rural marketing is promotion of a companys products in the rural markets by using
strategies which differ from that of urban market. The rural market more price sensitive but
it has preference quantity.
Nature of Rural market:-
. Large, dierse and s!attered market:-
Rural marketing in !ndia is large, and scattered into a number of regions. There
may be less number of shops available to market products.
". Ma"or in!ome of rural !onsumers is from agri!ulture:-
Rural prosperity is tied with agriculture prosperity. !n the event of crop failure, the
incomes of masses is directly affected.
#. T r a dit io nal outlook :-
$illages develop slowly and have a traditional outlook. %hange is a continuous
process but rural people accept change gradually. This is gradually changing due to
literacy especially in the youth who have begun to change the outlook in the villages.
&. #t a ndard of liing and rising d is$ o s a%le in !o m e of t&e ru r al !usto m e rs :-
!t is known that ma'ority of the rural population lives below poverty line and has
low literacy rate, low savings etc. Today the rural customers spends money to get
value and is aware of the happening around him.
(. Rising literar' le e ls :-
!t is documented that appro)imately &(* of rural !ndians are literate. +ence
awareness has increase and the formats are well informed about the world around
them. They are also educating themselves on the new technology for a better life
style.
,. Die rs e so !io e!on omi! % a!kground:-
-ue to differences in geographical areas and uneven land fertility, rural people
have different socio economic background, which ultimately affects the rural markets.
.. Infrast r u !t ure fa! ilities :-
The infrastructure facilities like warehouses, communications systems and
financial facilities /or0 inadequate in rural areas physical distribution is a challenge to
marketers who has found innovative ways to market their products.
#!o$e of mar k etin g :-
. Lar g e $ o$ula t io n :-
1ccording to "2 census, rural population is ."* of total population and it is
scattered over a wide range of geographic area.
". Rising rural $ r o s $e r it' :-
1verage income level has unproved due to modern farming practices, contract
farming industrialisation, migration to urban areas etc.
#. G r o ( t& in !o n s um$ti o n :-
There is a growth in purchasing power of rural consumers. The average per capita
house hold e)penditure is #3" Rs
&. )&a n ge in life s t'le :-
4ife style of rural consumer changed considerably.
(. Market gro(t& rate &ig&er t&an ur%an:-
The growth rate of fast moving consumer goods 567%89 market and durable
market is high in rural areas. The rural market share is more than (2* for products
like cooking oil, hair oil etc.
,. Life !'!le adantage:-
The products which have attain the maturity stage in urban market is still in growth
stage in rural market.
.. Rural marketing is not e*$ensie:-
To promote consumer durable inside a state costs croreRs while in urban areas it
will costs in millions.
+&at is rural market, Im$ortan!e of rural marketing ,
Ans:Meaning of rural market:-
:n account of green revolution, the rural areas are consuming a large quality of industrial
and urban manufactured products. !n this conte)t a special marketing strategy namely rural
marketing has emerged. ;ut often rural marketing is confused with agricultural marketing <
The letter denotes marketing of produce of rural areas to the urban consumers or industrial
consumers, were as rural marketing involves delivering manufactured or processed inputs or
services to rural producers of consumers.
I m $ ortan!e of rur a l marke t :-
. Larg e m arket :-
1ppro)imately .(* of !ndians population resides around ,,#3,#,( villages of
!ndia spread over #",22,222 =q. kilometre &* of !ndians middle class resides in
rural areas. The !ndian rural consumer leaves in ,,22,222 villages across the country
and they account for over .2* of population of the country. 6or several product
categories, rural markets account for over ,2* of the national demand.
". -ig & er $ ur ! & asing ! a $ a!it ' :-
1ccording to >N)AER?5@ational %ouncil for 1pplied Aconomic Research9. 1s
per @%1AR study there are many middle income and above households in the rural
areas. 1s there are in the urban areas there are almost twice as many lower middle
income households in rural areas as in the urban areas. ;ecause of this purchasing
power of power of rural people is on rise.
#. M a r k e t g r o ( t & :-
>+ariyali kissan ba'ar? was set up by sri ram consolidated limited to facilitates
scale of agriculture inputs such as fertiliBers, pesticides forming equipment, seeds etc.
=hakti- though the state governments and @8:= involved in microfinance women
entrepreneurs in villages are identified to act as local distribution and sales point for
+C4 products.
&. IT):-
!tcs internet enabled rural interface to help scale of agricultural outputs is presently
operational in , states market is growing at a rate of #-&* p.a.
Define si.e of rural market and dis!uss,
Ans: 1ccording to the census of !ndia village with clear surveyed boundaries not having a
municipality, corporation or board, with density of population not more than &22 =q.km and
with at least .(* of the male working population engaged in agriculture activities would
quality as rural.
1ccording to this definition there are ,,#3,222 villages in the country of these 2.(* has a
population about 2,222 and "* have population between (,222 and 2,222 around (2* has
a population less than "22.
!nterestingly, the 67%8 and consumer durable companies, any territory that has more than
"2,222 D(2,222 population respectively in rural market so for them it is not rural !ndia which
is rural.
1ccording to the census of !ndia "22, there are more than &222 towns in the country. !t
has classified them into , categories around &22 class-! to towns with ,22,222 and above
population, &E3 class-!! towns with (2,222-EE,EEE population, #,3 class-!!! towns with
"2,222-(2,222 population, (,2 class <!$ towns with 2,222-E,EEE population
!t is mainly the class-!! D class-!!! towns that markets term as rural.

Demogr a $&i!al details of Indian rural m a rket
F 1bout "3( millions live in urban !ndia where as .&" millions reside in rural areas.
F The @o. of middle income D high income households in rural !ndia is e)pected to
grow from &, millions to (E millions.
F =iBe of rural market is estimated to be &" millions household and rural market has
been going at ( times the growth of the urban market.
F 7ore government, rural development programs.
F !ncrease in agricultural productivity leading to growth of rural disposable income.
F 4owering of difference between taste of urban and rural customers.
The !ndian rural market with its vast siBe and demand offers great opportunity to marketers.
:ur national is classified in around &(2 districts D appro). ,, #2,222 village which can be
stored in different parameters such as literacy level, accessibility income levels, distance from
nearest town etc.
The rural market accounts for half of the total market for Tv sets, fans pressure cookers,
bicycles, washing soap, tea salt D tooth powder, what is more, the rural market for 67%8
product is growing much faster than the urban market.
E*$lain t&e distin!tion %et(een rural market / ur%an market,
Ans: Defi n ition :-
Rural marketing is similar as simply marketing. Rural marketing differs only in terms of
buyers here, target market consists of customers living in rural areas.Thus rural marketing is
application of marketing fundamentals Gconcepts, principles, theories etcH to rural marketers.
Rural marketing is a process of developing, pricing , promoting and distributing rural
specific goods and services leading to desired e)change with rural customers to satisfy their
needs and wants, and also to achieve organisational ob'ectives.
Differen!es %et(een rural marketing / ur%an marketing:-
1lthough rural marketing offer immense potential marketers used to recognise the fact
that there are considerable differences in many aspects including the nature, characteristics,
buying patterns D behaviours of rural consumer when compared with their urban counter
parts.
Ihile the urban economy thrives mainly on secondary and territory activities such as
manufacturing Dservice, the rural economy is driven mainly by primary activities such as
agriculture, fishing D forestry.
The consumer demand and consumption patterns also differ across rural and urban areas,
in many products rural consumption now accounts for a large share then urban. !n in washing
soaps the rural share is over ,2*. !n popular both soaps it is more than (2* and in batteries it
is more than (,* similarly is the case with packed tea D hair oils

As$e!t Ur%an Rural
Jhilosophy 7arketing Dsocial
concepts
D relationship market
7arketing D social concepts development
marketing
-emand +igh 4ow
%ompetition 1mong units in organiBed
sector
1mong unorganised sector
)onsumers:
4ocation
4iteracy
!ncome
A)penditure
@eeds
!nnovations
%oncentrated
+igh
+igh
Jlanned Deven
+igh level
6aster
Iidely spread
4ow
4ow
=easonal Dvariations
4ow level
=low
Jroduct awareness +igh 4ow
%oncept Known 4ess known
Jositioning Aasy -ifficult
Csage method Aasy grasped -ifficult to grasp
Luality preference 8ood 7oderate
Jrice sensitive Mes $ery much in rural
-istribution channels Ihole seller, retailers,
supermarkets, speciality
stores, authorised store
rooms
$illage shops
Transport facility 8ood 7oderate
Jroduct availability +igh 4imited
1dvertising Jrint, audio, visual
media, outdoors,
e)hibitions etc
T.v, radio, print media to some e)tent
Jersonal selling -oortodoor :ccasionally
=ales promotion %ontest, gifts, price discount 8ifts D price discount
Jublicity 8ood opportunity 4ess opportunity

+&at are t&e $ro%lems of rural marketing,
Ans: The problems of rural marketing are continuing in spite of efforts to improve in a E
th
five year plan. The position is improving but slowly the rural marketer has many challenges.
;ut the vast D e)panding markets call for good marketing strangers to create win situations
to all parties in the chain of rural marketing.
The problems of rural marketing are as follows:-
Cnder developed people
Cnder developed market
!mproper communication facilities
7any languages
$astness D uneven spread
4ow per capita income
Joor infrastructure facilities
=easonal demand
4ess distribution channel
. Under deelo$ed $eo$le:-
Rural society is found by tradition, old customs, practices etc. The impact of
modern science D technology has made very less impact of the old beliefs are still
continuing.
". Under deelo$ed market:-
Rural markets are not developing because of inadequate banking D credit
facilities. Rural market needs banks to enable remittance, to transact on credit basis
and to obtained credit support from the bank. 1t present every &3
th
village in !ndia
only has bank.
#. 0oor or im$ro$er !ommuni!ation fa!ilities:-
7ost villages even today largely depends on telegrams and phones for their
communication needs print media and visual media5Television cinema9 etc reaches
only about "2* of rural !ndians.
&. M a n' lang u ag e s :-
!ndia is a country of many languages. 4anguage becomes a barrier in effective
communication in the marketing efforts. The languages vary from state to state, place
to place, district to district there are now 3 schedule national languages.
(. 1astness / u n e e n l' s $rea d :-
!ndia is a vast time D ma'or appro)imately #"&km from @orth to =outh
D"E##km from Aast to Iest.
Rural market consists of appro)imately .( cores rural consumers spread across
appro)imately ,,#3,#,( villages. -espite the urban migration, the rural areas continue
to be the place of living for a vast ma'ority !ndians.

.
,. L o ( $ er ! a $ital in!ome :-
7ost farmers has small lands and many villages are brought prone, this result in
low per capita income.
4ow per capita incomeResults in low consumption pattern as compared to the
urban population.
The marketers faces challenges in rural marketing to decide about quantities,
frequency of distributions, package siBe etcN due to the low per capita income of the
rural people.
.. 0 oor infra s tru!ture fa! ilitie s :-
!nfrastructural facilities like roads, ware houses, powers etcN are inadequate in
rural areas. !nfrastructural cost are very high and impact adversely in the rural market
activities.
3. #easo n al d e man d :-
Rural economic is seasonal, rural people have two seasonal namely khariffDrabi.
$illages have money mostly in this seasons. 1s village income are seasonal demands
are also.

RCR14 71RKAT!@8
A@$!R:@7A@T
T&e rural marketing enironment
An environment is that which surrounds an organiBation. !t was sum total of e)ternal factors
and made up of tangible and intangible factors Oboth controllable and uncontrollable. Rural
marketing is basically focused marketing activity of a organiBation. The environment out
lines threats and opportunities of the market.
The Rural marketing environment is comple) and is changing continuously.
The marketing organiBation should foresee and adopt strategies to change in requirements in
the market. :ne which doesnt change perishes. 1n adaptive organiBation can stand
competition or have a modest growth. 1n organiBation which makes its effective marketing
plans and its own strategies or a creative one will prosper and creates opportunities in the
change in environment. Rural marketing environment changes will be in the area of
a0 =ocial changes
b0 Aconomic changes
c0 Athical changes
d0 Jolitical changes
e0 Jhysical changes
f0 Technological changes
#2)IAL E)2N2MI)
Jsychological
=ociological factors 6actors
Jrice
%ompetition
1nthropological
6actors
Jroduct D Jackaging
%onsumer
Jrice
Marketing
2rganisatio
n
Jromotion
Te!&nologi!al Et&i!al
Jlace
0&'si!al
0oliti!al
3igure 4T-E MARKETING EN1IR2NMENT

45# 2) IAL )-AN GE#:- The social factor consists of three factors,
46 #o!io lo g i! a l fa!tor:-
%onsumer society or the community is important. The
consumer life style is influenced by the social setup. The social constitution and
changes influence customer habits, taste, and lifestyles.
76 Ant & ro$ologi! a l fa ! tors :-
The reasonable cultures and subcultures and living patterns
influence advertising sales promotion, selling strategies and packing. The consumers
in east !ndia have different taste.
86 0s'!&ologi ! a l fa !tors:-
%onsumer behavior attitudes personality and mental make ups
are unique. The study of behavior is vital to evolve marketing mi).
75 E!on omi! fa!tors :-
46 )om $ e tition:-
1 good and healthy competition brings in good and overall
improvement in economic activities. !t also brings good quality, good quantity and
price.
76 )ons umers :-
The consumer today is quite knowledgeable and choosy. +is
progress and well being should be the aim of any economic activity.
86 0ri! e:-
Jricing is a delicate issue where it should be market friendly, not
too high or to little. The marketers has to keep in mind to get descent returns on
investment and effects of producers and marketers.
96 Et&i!al for!es:-
;usiness minus ethical values brings degeneration. !n the long run it
brings problems. @o standardiBation, e)ploitation and falsification are main ethical
values in such organiBation.
:6 0olit i ! a l for!es:-
The government polices towards trade and commerce, internal
ta)ation and preferential treatments have a influence on the marketing strategies. The
marketing environment has to meet the political frame work in which a government is
made to work.
;6 0 & 'si!al for!es:-
The infrastructure availability for movement and storage of goods
play an important role in the physical distribution of goods and reaching the
consumers. Afficient and cheaper logistics helps the market in a big way.
<6 Te! & nologi ! a l fo r ! e:-
The fast changing science and technology gives a cutting edge to the
marketing of products. The changes warrant changes in marketing , inputs and

strategies. 6aster and efficient communication and transport systems have speeded up
marketer. The capital is made to work faster and harder .=o in the case with the
marketer, +e has to use these new marketing tools and facilities in designing and
implementing his marketing strategies which are adaptive to the change in
environment and ensure success.
3a!tors influen!ing rural !onsumer %e&aior
AN#:- The various factors that affect buying behaviour of in rural !ndia are:
0 Enironm e nt of t& e !onsumer:- the environment or the surroundings in which the
consumer leaves has a very strong influence on the buyer behavior. A.g.:-
electrification, water supply effects demand for durables.
"0 G e o g ra $ &i! influe n ! e:- the geographic location in which the rural consumer is
located also speaks about the thought process of the consumer. 6or instance, villages
in south !ndia accept technology quicker than in other parts of india.Thus, +7T sells
more winding watches in the north while they sell more quartB watches in the south.
#0 Influen!e of o!!u$ation:- The land owners and service can buy more of category" D
category# durables than agricultural laborers.
&0 0la!e of $ur!&ase:- %ompanys need to access the influence of retailer on both
consumers at village shops.
(0 )reatie use of $rodu!t:- The study of product and provides indicators to the
company on the need for education and also for new product ideas.
E5g5:- godre' hair dye being used as a pain to the color horns of o). Iashing machine
being used for making lassie.
,0 =rand $referen!e and lo'alt':- the people in rural market will not give preference for
brand products but they give importance for loyalty of the product. 32* of the sale is branded
items in , product category.
3a!tors influen!ing Rural marketing o$erations
AN#: - All business operations revolve around understanding customer needs, desires likes
and preference and offering products and services that will give desired satisfaction to the
consumers.
3A ) T 2R# IN3L U EN ) ING 2R )2NTRI=UTI N G )2N#UMER =E-A 1 I2UR:-
a0 Anvironmental
b0 %ultural

c0 =ocial
d0 Jersonal
e0 Jsychological
a6 Enironm e ntal :-
I5 E!ono m i! f a!tors:-
The agricultural and rural development has enabled our
country to achieve self sufficiency in food production and we are now
e)porting a variety of agricultural commodities to foreign countries. 6avorable
monsoons during the last 2 years have let to increase in crop yields and rural
income. !n addition, diversification of a agriculture, development of village
industries, migration of rural people into cities, remittance of money, family
members settled abroad have increased income level and buying power of
villagers.
II5 0ol iti ! a l fa!to r s :-
The government have taken initiative for economic
development of rural areas and have invested heavily in agriculture, irrigation,
electricity, khadi and village industries and infra structure facilities such as
roads, communication, hospitals, school, and banking. The initiatives certainly
let to rural prosperity and opportunities for the marketers.
III5 Te!&nologi!al deelo$ment:-
The rapid e)pansion of telecommunication facilities and mobile
phone has provided opportunities for rural people to keep in touch with men
and markets. -evelopment of T$ networks and reasonable channels has
enabled the marketers to pass on message about product and services to rural
people. !n rural areas especially in large villagers and villagers near to towns
and cities, children and youth have accused to information such as 'ob
opportunities, national news, weather conditions, bank loans etc..!T and
internet are sure to spread up e)change of information in rural india though at
a slower rate compare to urban market
!$. Lega l :-
The government has come out with legislative measures to protect
the interest of consumers some of the important ones are:-
a5 M one' lenders: -
The money lenders advance long term loans against security of
land over period of time manipulate the records and seiBe the land. The government
protects the assets of farmers from money lenders.
%5 )onsum e r $ r o t e ! tion a!t: -
%onsumer protection act provides protecting the rights and
interest of consumers and we have a quasi 'udicial machinery operating at # levels i.e.
district forum, state and national forum.
15 )u ltural fa!tors:-

a6 )ul tu r e a n d s u % ! u lture :-
%ulture represents an overall heritage a distinctive form
of environmental adaption by whole society of people culture is a system of
shared beliefs and customs that influence the behavior of consumers.
Traditional life, traditional occupation, traditional beliefs are the features of
rural life.
%ulture provides people with a sense of identity and an
acceptable behavior with in a society. Technological advances education and
travel have considerable influence on culture and change the rural life style.
%ulture offers direction and guidance to the members of a society in all facets
of life. !t provides methods of satisfying physiological, personal and social
needs.
%6 # u% ! u lt u r e :-
!t e)ists within the dominant culture, with its own set of
values, beliefs and attitudes and behavior pattern. The pattern of behavior
would vary between north and south even in rural areas.
!6 #o!ial !lass:-
%onsumer behavior is determine by social class to which
they belong and is determine by a combination of factors like education,
occupation, income and assets. !t is seen that over a period of 2years there
has been considerable reduction in the per culture of destitute and increase in
other social classes in rural areas. This is a positive indication of the growing
rural market in our country.
1I5 #o!ial fa!tors:-
a6 3amil':-
6amily is a group of persons related by blood, marriage or
adoption who reside together. !t is basic social group and consists of
individual known as members. The #
rd
generation family is very common in
rural areas. The head of the family provides economic security to family
members. The members of family play different roles such as influencer
decider and purchaser is the buying process. Jersonal values, attitudes and
buying habits have been shaped by family influences. 6amily life cycle also
influences.
%6 Referen! e g rou$ :-
!t includes family and friends with whom an individual
interacts on a face to face basis. Iord of mouth communication is a process
by which the messages are passed within group from one member to another
member. The consumer develops positive opinion towards a product or
service based on admiration /cricket players0, aspiration /film stars0 or
empathy. The consumer thinks that if he uses it, it must be good if use it, !
will be like him.

1II5 0e r s onal fa!tors:-
a6 Age and life ! ' !le:-
4ife cycle of a person began with child birth, move to infancy,
teenage, adult, middle age, old, and then ends with death. Cnder each stage
buying behavior is different.
%6 2 ! !u $ at io n :-
1bout (22 millions of population depends upon agriculture for a
living. !ncome from agriculture is a seasonal and therefore demand
particularly consumer durables is high during post harvested period and
festivals. 7any farmers have diversified into fish culture and small scale
industries in order to reduce their dependence on forming and to ensure
regular income. This leads to increase the demand for consumer durables.
!6 E ! o nomi! !i r ! um s tan ! e :--
Rural income is seasonal compare to an urban consumer who
receives regular income regarding saving habits, traditionally rural people
prefer to invest in 'ewelry and fi)ed deposits in banks and posts offices. 1
farmer would like to invest these funds for development of agriculture and
buying lands. 1nother interesting observation is that for the same income
level, a rural consumer has relatively high disposable income.
d6 Life st'le:-
4ife style studies how people spend their money and time in day
to day activities. The life style dimensions are activities and demographic
features such as age, gender, occupation, education, and income. Rural
consumes prefer to spend, spare time, in activities. =uch as visiting meals i.e.
commodity and religious fairs, companys can use such meeting places for
product promotion.
e6 0ersonalit' and self !on!e$t:-
Jersonality is a unique combination of different individual
characteristics. Ie find that many individuals are similar in terms of one or
more characteristics, but they are not alike in all characteristics. Jersonality is
a combination of factors such as
sociability, self confidence and dominance. Jersonality influences in many
ways.
1III5 0s'!& o logi!al fa!tors:-
a6 Mot iation :-
Ihen a buyer purchases a product or service, he has a reason.
7otive is a strong felling, desire or emotion that makes the buyer to take
decision to buy every human activity is a result of motivation. Aach person is
motivated by his needs and satisfaction of one need shows that rural
consumers are satisfied by meeting the "needs i.e. physical and security need,
where as urban consumers would like to satisfy social and needs .

7otives can be also classified as psychological and psychogenic motives. !n
rural areas there e)its large population consisting of agricultural laborer, small
and marginal farmers, petty traders who have very limited income and their
needs are very basic i.e. food clothing and shelter.
%6 0e r! e$ tion:-
1ll consumers are not alikeP they see the world in their own
special ways. 6or instance, all the members of the family have viewed a
particular advertisement in different ways. This is because needs, wants,
values attitudes and personal e)perience vary from person to person.
=imilarly, consumers perception means what he thinks about the product,
producer or the brand. %onsumers action, buying habits, consumption habits
are based on perception and therefore the motor should have good
understanding of perception of consumers.
!6 Lea rn in g:-
!t is a process of acquiring knowledge about products, product
benefits, method of usage and maintenance and also disposal of the products
considering low literacy, low awareness, the marketers have to educate the
consumers through rural- specific promotion media and methods.
d6 =elies a n d a ttit u d e s:-
!n general attitude is a state of mind or feeling. 1ttitude
indicates our feeling about a product, service, brand and shop whether we are
positively or negatively disposed towards the ob'ect or class of ob'ects.
%onsumer attitudes or composed of beliefs, feelings and behavior intentions
towards a product, brand or store.
;elief may be positive, negative or neutral. The belief that
consumer hold need not be correct. %onsumers also hold certain feelings
towards product and these feelings are based on the beliefs.
E*am$les:-
46 7any rural consumers belief that cool drinks are harmful and they prefer lime
'uice, butter milk etc.. %hange of attitudes and beliefs is very low in the case of rural
consumers. :nce he is convinced, he will continue to use the product and
become a loyal consumer.
76 7a'ority of lower and middle income group continue to use lifeboy and soap and
about .2* of the sales of the life boy is in rural and semi urban areas.

RURAL MARKET #EGMENTATI2N
7arket segmentation means dividing heterogeneous market into homogeneous sub units into
homogenous sub units here heterogeneous means consider the market as a whole and refers
mass marketing. +omogeneous sub units means which have similar tastes and preferences
but not the same tastes and preferences.
Rural market segmentation is mainly based on demographic factors. The division is based
on the premises the different people have different preferences. The following are the basic
market preferences:-
. +omogeneous preferences where consumers have roughly the same preferences.
". -iffused preferences where consumers are scattered throughout the market by their
preferences.
#. %lustered preferences were consumers are found in distinct preference groups.
Degree of se g me n tat i on :-
The segmentation is considered as a process with two polar points from Bero to complete,
four distinct segment approaches are identifiable as follows
Mass marketing:-
!n the early period of the "2
th
century many companies practiced mass production and
mass distribution as economics evolved as economy evolved and societies became civilised,
consumer choice and requirements came into focus until now the rural market was considered
as homogeneous mass as worse the !ndian market till some "2 years ago. =ome companies
depend on mass marketing while many do not.
#egment m a rketin g :-
The principle of segment marketing rests on the realisation that buyers differ in their
needs, wants, demands and behaviours. The need for segment marketing arises when
Q %onsumers have become more diverse, sophistically and choosy.
Q %ompetition has become tuff.

Ni!&e m a rketing :-
1 niche is very small group with a different set of traits, who seek a special combination of
benefits. @iche marketing identifies special sub groups within larger segments and offers
different products and services.
Mi!ro m a rke t ing :-
7icro marketing involves tailoring products and programs to suet the taste of specific
locations and individuals. !t includes local marketing and individual marketing.
Q 4 oc a l m a rketing :- !t involves in the programs to suit the taste of specific locations
and wants of local groups on a geographical bases.
Q !nd iv idual m a rk etin g :- !ndividual market is customiBed marketing or one to one
marketing. Tailoring unitshotels, tourist operators provide individualised services for
e)ample building contractors builds houses of flats to specific requirements of
customers.
T'$es of rural market segmentation:-
Demogra$&i! fa!tors:-
-emographic factors are taken into detailed consideration for market segmentation of
consumer goods and fast moving consumer goods /67%80. !n case of rural marketing i.e. to
sell outside goods in rural areas, demography came into the picture. +owever the categories
are much reduced. =ome of the segmentations are as below.
2!!u$ational segmentation>or6so!iologi!al segmentation:-
This segmentation is based on economy vice categorisation. This reflects the purchasing
power of a farmer and therefore the purchase power of his family they are
. 1rtisans, farm labourers
". =mall farmers
#. Tenant farmers
&. 7edium level farmers
(. 4arge farmers
,. $ery large farmers, Bamindars
1r t isa n s and othe r s
This covers carpenters, blacksmiths, handy-crafts, people are unemployed.
Tenant farmers
Iorking on rented land to share the crops with owners of the land.

=mall farme r s
Iho own small farms are 'ointly owned farms for getting food.
7ediu m level farmer s
Iho own small farms are 'ointly owned farms for getting food.
4arge farmer s/or0rich farmer s
Iho have large lands and all local leaders they spend types in urban areas and doing other
occupation.
$ery larg e far mer s, l and lords/or0Bamindars
Ramindars, rich money lenders and business men who owned big siBe lands and maintain
large siBe farm labour. @ormally they spend time in nearby urban areas with politicians.
6rom the above the small farmers and tenant farmers will struggle for basic needs but the
medium level farmers struggle for comforts. ;ut the large farmers will not struggle for basic
needs and comforts.
=o the marketers target only large farmers and very large farmers for segmenting the
market.
T&omson rural market inde*>TRMI6segmentation
+industan Thomson associates ltd developed a guide to market segmentation in E." and
revised it in E3,. They collected data in ##( districts based on ", variables finally they
arrived on 2 selected variables having strong co-relation to rural market potential.
. 1gricultural labourers
". 8ross cropped area
#. 8ross irrigated area
&. 1rea under non-food crops
(. pump sets.
6ertilisers cons u m p tion
. Tractors
".
Rural credit
#.
Rural deposits
D village electrified.
;ased on these factors, the districts are classified as 1,;,%,-DA. Ihich are in order
of high potential market to low potential market.

=RANDING
;randing is a practise of giving specified name the specified name creates individuality in
the product and it can be easily recognised from rival product the term brand is broadly
applied to all identifying such as trade names, trademarks trade symbols etcN e.g.:- pepsi,
lifeboy are brand names it is recognisable by sight but hes not normally pronounceable.
The rural consumer likes to stick to brands that give value for money
I m $ ortan!e of %ra nd ing
. ;randed product can be easily recognised by the customer in the retail shop it offers
protection to the consumer as it identifies the firm behind the product.
". ;randing enables the firm assured control over market. !t creates an e)clusive market
for the product.
#. !f a firm has one or more lines of branded goods it can had a new item to its list
easily D the new item can en'oy all the advantages of branding immediately.
)&ara!teristi! o f %randing
1t t ributes Dbenefits :-
;rands of a product plays an important role to attract the rural customers because they
mostly believe in the brands, 'ust by seeing branded products they will purchase assuming
that they will be satisfied by product.
$alues :-
;y seeing the brand the customers will consider the performance of the product and the
safety of the product some customers felt that prestige while purchasing the branded
products.
%ulture:-
;y seeing the brand the customer assumes the product is efficient and they also assumes
high quality.
J e r s o n alit y :-
The person who is using that product
T'$es of %rands
45 I n diidual %rand name
Aach product has a special and unique brand name the manufacturer has to
promote each individual brand in the market separately this creates a practical
difficulty in promotion otherwise it is best marketing strategy eg:- surf, cinthol, chik
shampoo etcN.
75 3 a mil' %rand na m e
6amily name is limited to one line of a product i.e. products which complete same
cycles family brand name can help combined advertising and sales promotion
however if one member of the family brand is re'ected by the consumers or
customers the prestige of all under the family brand may be adversely affected. The
manufacturers have to take e)traordinary care to guard against the danger family
brand name enables creation of strong shelf. !t helps to secure quick popularity it is
preferable to have separate brands for each product for eg:-amul for milk products,
pounds for cosmetics etcN
85 U m %rella %rand name
Ie may all products such as chemicals, engineering goods, automobiles etc.
7anufactured by the Tata concerns will have the Tata as one umbrella brand such a
device will also obtain low promotion cost and minimise however e)perience in any
of the line of products, a solitary failure may be very dangerous to the rest of the
products sold by a particular business house under umbrella brand.
95 )om%ination dei!e
-ata house is using combination device each product has individual name to
indicate the business house producing the product eg:- Tata !ndica, side by side with
the product image we have the image of the organisation also many companies use
this device profitably.
:5 0riate or middleman?s %rand
;randing can be done by manufacturers or distributors such as wholesalers, large
retailers. !n !ndia this practise is popular in the wooden, sport goods and searches
other industries it helps small manufacturers who have to rely on the middlemen for
marketing. !t is also used by big manufacturers the manufacturer merely produce
goods as per specifications and requirements of distributors and he need not worry
about marketing. 7anufacturers make both national and private or middleman
brands. %onsumers of the private or dealers brand.

=ome of the brand names that have created lasting impact on rural consumers are as
follows:
. Avery day batteries: ;attery with cat as a symbol
". 4ifeboy
#. 1sian paints mascot
&. -abur chawan prakash
(. Jarle
,. Jarachute
.. 1mul
3. Randubalm
E. Tata salt
2. @irma
. Te)tile: %hermas, Kumar shirts.
=rand a(areness in rural marketing
Rural $rodu!t deelo$ment:
The rural market is a fast growing one and has a huge population with a great level of
disposable income to encase thisP products have to be specifically developed to meet the
creeds of rural market sometimes e)isting products might have to be modified to suit these
markets too accordingly.
Rural product development has a strong edifice on a great deal of research like feasibility,
studies, rural aspiration and soon. This paves way for a great deal of infra structure and
e)pertise in this area.
Rural %randing: Rural branding bears quit different from urban branding. The first step
towards rural branding is to search and gain insight into the working of rural markets. ;ased
on this communication campaigns products have to be developed with a lot of rural
sensitivity.
Rural market resear!&: rural market behave most differently from urban markets. Ihile
many marketers have tried to market their products in rural areas. Sust a hand full of sum
only has succeeded. 1 strong insight into rural consumer behaviour and sensitivity to their
values and beliefs is essential to upgrade the rural market research not 'ust gathering data
but analyBing them and linking the findings to promoting their products. Rural
communication campaigns communication for rural markets calls for a different kind of
outlook. There must be a strong ascent on helping the target relate to message. The entire
communication and media strategy has to device a system based on research findings.
These have to be developed in the regional languages and set in the local culture for easier
acceptance and reach to the customers. ;esides mass and outdoor media rural

e)travaganBa /cultures0 like temple, festival, melas, and other events where the villagers
come together can be used for promotions.
Rural e en t s : !n the rural conte)t, one of the best ways to capture the attention of the
audience is through event management. =ince rural areas have limited venues for
entertainment, conducting an event in rural areas can bring a good response..
Rural di re !t ma r ket i n g !am$aigns: -irect marketing is one of the most
powerful ways to meet the targets and build product awareness as well as promotion. The
success of any direct marketing campaigns depends on the field workers and their sensitivity
and emotional connectivity to rural markets.
Data %ase !reation and ma n a gement : 7arketing branding and promotional
activities in rural conte)t can be highly effective and thereafter have to create a database of
prospects. This data is essential for marketers to reach their target accurately and helps
marketing plan and communication strategies.