Rahul Sayal

MBA I (D)

5804

MARKETING

The Chartered Institute of Marketing defines marketing as “The

management process responsible for identifying, anticipating and

satisfying customer requirements profitably”.

Marketing is defined by the American Marketing Association “as the

activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have

value for customers, clients, partners, and society at large.”

Professor E. Jerome McCarthy, at the Michigan State University in the early 1960s, suggested that the Marketing contained 4 elements:

The Four P`s

Product

Price

Placement

Promotion

THE MARKETING ENVIORNMENT MICRO ENVIO RNMENT

A firm's micro-environment spans:

Customers/Consumers

Employees

Suppliers

MACRO ENVIORNMENT

A common method of assessing a firm's macro-environment is via

P - P O L I T I C A L

E - E C O N O M I C

S - S O C I A L

T- T E C H N O L O G I C A L

L - L E G A L

E - E C O L O G I C A L

RURAL

Sparsely populated area outside of the limits of a city or town or a designated commercial, industrial and residential centre.

Rural areas are characterized by farms, vegetation, and open areas.

RURAL MARKETING

Rural Markets are defined as those segments of overall

market of any economy, which are distinct from the

other types of markets like Stock market, Commodity

markets or Labour economics.

Selling in Rural India

Opportunity

The Indian rural market with its vast size and demand

base offers a huge opportunity that MNCs cannot afford

to ignore. With 128 million households, the rural

population is nearly three times the urban.

The 4A Approach

Availability

Because of the poor state of roads, it is greater challenge to regularly reach products to the far-flung villages.

Affordability

Godrej introduced three brands of Cinthol, Fair Glow and Godrej in 50-gm packs, priced at Rs. 4-5.

Acceptability

LG Electronics developed a customised TV for the rural market and named it Sampoorna.

Awareness

Coca-Cola uses a combination of TV, cinema and radio to reach 53.6 per cent of rural households.

STRATEGIES OF FMCG COMPANIES IN RURAL AREAS

The e-Choupal model has been specifically designed to

tackle the challenges posed by the unique features of

Indian agriculture, characterised by fragmented farms,

weak infrastructure and the involvement of numerous

intermediaries, among others.

E-Choupal (Launched in June 2000)

ITC Limited has established computers and Internet access

in rural areas across several agricultural regions of the

country, where the farmers can directly negotiate the sale

of their produce with ITC Limited.

Main Challenges Involved in Rural Marketing

Convincing the rural customer.

Promotion of products in their regional language.

Lack of Infrastructure Facilities

Low Levels of Literacy and awareness.

Lack of knowledge in usage of advanced products.

CORPORATES INTEREST IN RURAL MARKETING

When rural customers discover the new and exiting choice of brands available in urban markets, a demand for these brands is created in rural areas. When Titan found rural consumers purchasing their Sonata brand of quartz watches, they formulated a marketing strategy tailored to the requirement of the large rural market.

Growing Importance Of Rural Markets Hindustan Motors (HM) launched a utility vehicle the

RTV (Rural Transport Vehicle), aimed at the rural

market. One way of meeting the intense competition in

the passenger car segment by HM is through increased

efforts in rural markets. It has over 40% of this rural

market, exploiting the low prices, reliability and time

tested rugged aspect of the Ambassador brand.

COMPETITION IN RURAL MARKET

• Competition in rural markets is varied in nature and a marketer faces competition not only from other brands but also from substitutes, especially in places where the product is new to the consumer.

• Such situations are quite common in rural markets. Competition for existing brands can be from other brands, from new player’s small unorganized sectors, duplicates and imitation.

• The task for a new player entering in the market is difficult given the advantage that entrenched brands have in rural markets.

Perspective Role and Contribution of Information Technology in Rural Markets in India

With the changing patterns of Rural Market, the role of I.T. has increased from providing only the Networks to set-up the basis of updated technological programs in the rural area.

In Rural India, Government has already provided Info-kiosks (a rural version of cyber café) which provide basic communication facilities like internet connection and telecommunication services.

Some of the programs run by the government in different areas of rural sector are:

E-Mitra

Wi-Fi Projects

Drishtee

Gyandoot

TARAhaat O TARABazar (for product information)

O TARAdhaba (for providing connectivity)

O TARAdak (connect to relatives at distance)

O TARAgyan (educate rural youth on various issues)

O TARAguru (helps in mentoring and consultancy)

O TARAvan (delivery of orders at remote areas)

Continue……..

Rural e-seva

Bhoomi

e-choupal

Aksh

n-Logue

INCLINATION OF SECTORS TOWARDS RURAL INDIA

FMCG

Insurance

Retail

Automobiles

Pharmaceuticals

Consumer Durables

STRATEGIES FOR IMPROVING MARKETING WITHIN RURAL AREAS

• Product Strategies

• Small unit and low priced packing

• New product designs

• Sturdy products

• Brand name

• Pricing Strategies

• Distribution Strategies

• Promotion Strategies

CONCLUSION

The face of Indian rural market can be transformed only with the deployment of I.T. I.T. enabled services are growing at a fast rate and are providing several services to rural people with the common motive of having increase in the connectivity and thus creation of bigger market in the rural areas.

A LAST WORD

This is just the tip of the iceberg.

Rural marketing is at its infancy and is advancing by leaps and bounds.

So stay tuned… and stay ahead of your competitor.

YOU

QUERY???