RM
Unit 3Rural Marketing MixQ1) Explain relevance of marketing mix product & price for rural market consumers?A1) Product: Product for the agricultural marketplace should be constructed or changed to match the lifestyle & desires of the agricultural clients. The rural marketplace isn't always a homogenous set of clients with options frozen in time. The employer needs to hold in thoughts that earlier than growing the goods for rural marketplace, entrepreneurs should discover the standard rural particular desires. Urban merchandise can't be dumped onto rural markets without modifications. For instance, shampoos or soaps with distinctive, sturdy rose or jasmine perfumes are very famous with the agricultural ladies in South India. The city ladies do now no longer discover as strongly with those perfumes. On average, rural peoples might use a shampoo most effective as soon as a week. Habits take time to alternate and making unit sachet packs inexpensive is the important thing to inducing trial and buy. Systematic, in-intensity studies which could assist apprehend the depths of the thoughts of the villagers, their shopping for criteria; buy styles and shopping electricity are a critical enters whilst growing rural particular merchandise or services. The product techniques to be observed in rural marketplace: Newly/ Modified product. Utility Oriented product. Avoiding state-of-the-art packaging. Application of Value Engineering. Small unit packaging. Price: The villagers because of their charge sensitivity are very value sensitive. This does now no longer suggest that a rural consumer is a miser. He isn't always sincerely seeking out the most inexpensive product as a substitute he is familiar with and needs fee for cash in each buy that he makes. Pricing consequently is an instantaneous characteristic of things which include value-gain gain and possibility value. Pricing presented to customers need to be for fee services which can be inexpensive. The Pricing Strategies to be observed in rural marketplace. Large volume low rising. Overall efficiencies and passing on advantages to the customer’s. Low value/fee for cash merchandise. Low volume-low charge. Key takeaways: Product for the agricultural marketplace should be constructed or changed to match the lifestyle & desires of the agricultural clients. The rural marketplace isn't always a homogenous set of clients with options frozen in time. Villagers because of their charge sensitivity are very value sensitive. This does now no longer suggest that a rural consumer is a miser.Q2) Explain relevance of marketing mix place & promotion for rural market consumers?A2) Place: A village as a tempo of advertising, distribution and intake may be very distinct from city and city. The maximum vital hyperlink in making sure the fulfillment of rural advertising efforts is distribution. In Rural India, the choice and use of distribution channels is a nightmare. As in Rural India’s three million stores are positioned in 6.3 lakh villages. Thus, entrepreneurs are confronted with the hassle of feeding three million stores positioned in massively numerous regions every of which facts a median sale of most effective Rs.5, 000 in line with outlet. Further hassle is that even this sale is totally on credit score. The variety in the distribution of stores is the self-restricting element in phrases of servicing the agricultural distribution community. The distribution techniques to be observed in rural marketplace: Segmentation. Covering of villages having population above 2,000 Distribution to feeder marketplace or mandi. Direct touch with rural retail. Promotion: Promotion factors constantly create a venture in rural regions as they have got a totally thin population density however is spreader in the big far remote region. There are quite a few obstacles that militate in opposition to homogenous media and message delivery. The rural consumer loves to contact and experience a product earlier than creating a choice. Demonstrations are certainly the handiest promotional device that shapes buy choices of the agricultural population. In today’s facts era, it's miles very vital for organizations to wise-up on rising technologies. It has in truth grown to be a medium to draw large audiences for a product demonstration. Technology should be used to put together a database of clients and their requirements. The use of video the use of cell trucks or even big display screen video partitions at occasions needs to be arranged. Several visible verbal exchange and non-verbal verbal exchange are utilized by the organizations to attain the agricultural target market as big share of the agricultural population can't examine or write.The promotional techniques to be observed for advertising in rural marketplace. TV Radio Print media Cinema Hoarding Key takeaways: The employer needs to hold in thoughts that earlier than growing the goods for rural marketplace, entrepreneurs should discover the standard rural particular desires. Demonstrations are certainly the handiest promotional device that shapes buy choices of the agricultural population. In today’s facts era, it's miles very vital for organizations to wise-up on rising technologies. The maximum vital hyperlink in making sure the fulfillment of rural advertising efforts is distribution.Q3) Explain product strategies?A3) Small unit packing: This technique has been examined with the aid of using merchandise lifestyles shampoos, pickles, biscuits, Vicks cough drops in single tablets, enamel paste, etc. Small packing’s stand a very good danger of recognition in rural markets. The gain is that the charge is low and the agricultural consumer can effortlessly have enough money it. Another instance is the Red Label tea Rs.3.00 % which has greater income compared to the big percentage. This is due to the fact it's miles very inexpensive for the decrease profits organization with the inner most marketplace attain making clean get entry to the give up consumer gratifying him. The small unit packing’s will truly appeal to a big range of rural customers.New product designs: Keeping in view the agricultural lifestyles fashion the producer and the advertising guys can suppose in phrases of recent product designs. For e.g. PVC footwear and chappals may be taken into consideration sited preferably for rural customers because of the destructive running conditions. The charge of P.V.C items is likewise low and inexpensive.Sturdy merchandise: Sturdiness of a product is a vital element for rural customers. The revel in of torch mild dry battery cell producers help this due to the fact the agricultural customers desired dry battery cells which might be heavier than the lighter ones. For them, heavier weight intended that it has greater over and durability. Sturdiness of a product both or look is a vital for the agricultural customers. Utility orientated merchandise: The rural customers are greater worried with application of the product and its look Philips India Ltd. Developed and added a low value medium wave receiver named BAHADUR at some point of the early seventies. Initially the income has been right however declined subsequently. On consumer studies, it become observed that the agricultural consumer sold radios now no longer most effective for facts and information however additionally for entertainment.Brand call: For identification, the agricultural customers do provide their very own brand call at the call of an object. The fertilizers organizations typically use a brand at the fertilizer luggage though fertilizers should be bought most effective on popular names. A brand call or a brand may be very vital for a rural consumer for it may be effortlessly remembered.Key takeaways: A high want for any organization to grow to be a sturdy participant in the rural marketplace is with the aid of using cautiously figuring out gaps in the rural marketplace and crafting the proper product imparting for customers. Chalking out a product method for rural marketplace differs in lots of factors whilst as in comparison to city counter components. Needs and call for of rural consumer is probably contrasting to that of city consumer and consequently it’s vital to hit the proper chord whilst coming into the agricultural marketplace. The high goal is to layout merchandise to match rural requirements. Q4) Explain rural product categories?A4) FMCG: Major gamers are HUL, Dabur, Marico, Colgate Palmolive, Nirma, CavinKare and Godrej. Consumer Durables: Usha, Bajaj, Philips, Titan, Godrej, Videocon, Onida, Salora, Hero Cycles, Hero Honda, Mahindra & Mahindra and Tata. New entrants –LG, Samsung and Maruti. Agricultural Products: Agricultural inputs inclusive of seeds, fertilizers, insecticides, pesticides and implements (tractors, tillers and threshers) Livestock, chicken and fishery. Major gamers are Rallis India, Monsanto, DCM Shriram, Chambal Fertilizers, IFFCO, Mahindra & Mahindra, Eicher and Escorts. Goods & Services: Telecommunications (BSNL), shipping, fitness care, banking (SBI), insurance (LIC) and education.Key takeaways: Products which are essentially in demand. These products are basically supplying in rural India. Q5) Explain importance of branding, packaging & labeling?A5) Branding The principles of brand is migrated from Urban to rural regions .Consumers have graduated to branded products with expanded affordability because of growing rural earning in current years. A brand name in the rural context allows clean brand take into account and in drawing any hues, visible or numeric association. But a few manufacturers are recognized with the aid of using their names, for instance, Nirma and Baba Zarda. The choice of Sampoorna because the call for its rural TV brand helped LG as it's miles a Sanskrit word meaning "wholesome" and subsequently it cuts throughout all local linguistics obstacles. The trendy one is Broke Bond Sehatmand. The cause at the back of launching Sehatmand become tea as Health Supplement in the ruralareas.HUL fussed Vitamin B in each granule of tea with the aid of using the technology. Company is attempted to fill up the distance of required Vitamin B with an aim to lessen numbers in undernourished or malnourished class of human beings. Packaging This packaging method is now extensively followed with the aid of using each FMCG employer is a hit now no longer most effective in rural region however additionally in city region in particular a few of the center and decrease profits businesses. Large packs are out of attaining for rural customers due to the fact rural human beings have very much less coins reserve with them. Rural human beings make purchases in small plenty to fulfill their everyday requirements. Now many organizations promote their merchandise in quantities; merchandise inclusive of hair oil, biscuits, and equity creams. These organizations have joined the race of Low Unit Packs (LUP) now no longer most effective to penetrate into the agricultural marketplace however additionally to inspire human beings to strive the brand new brand. Labeling Labeling is a vital a part of the advertising of a product. Labeling is critical as it allows seize the eye of a client It may be mixed with packaging and may be utilized by entrepreneurs to inspire potential consumers to buy the product. Packaging is likewise used for comfort and facts transmission. Packages and labels talk a way to use, shipping, recycle or remove the package deal or product. Labeling is likewise used to magnify the product. Also, it's miles used for identification. This form of labeling allows a viewer to distinguish the product from the relaxation in the cabinets of the marketplace. A man or woman can discover approximately the substances of a product. This allows unfolding consciousness a few of the clients approximately the object they may be eating and labeling additionally allows to say substances. Labeling is every other very vital element in a product. It needs to display the perfect facts approximately the product. This is all of the greater vital in merchandise inclusive of pharmaceuticals. Labeling need to additionally comprise facts referring to whether or not the product has dangerous chemicals, in particular if it's miles a product that is supposed for children.Key takeaways: Company is attempted to fill up the distance of required Vitamin B with an aim to lessen numbers in undernourished or malnourished class of human beings. It’s miles used for identification. This form of labeling allows a viewer to distinguish the product from the relaxation in the cabinets of the marketplace. Rural human beings make purchases in small plenty to fulfill their everyday requirements.Q6) Explain nature of competition in rural markets?A6) Having understood the possibility of rural marketplace, two-wheeler producers had been taking the agricultural marketplace greater than seriously. The two-wheeler marketplace in India is the most important contributor to the car enterprise with a length of almost Rs.2, 00,000 million. Two-wheeler income in current years has shot up, and its miles anticipated moving 20 million marks. Its penetration stands at round 10% of rural family and 28% of city markets. Among the two-wheelers, motorbike enjoys greater call for than scooter due to petrol performance, appears and resistance on bad-roads. The upward push in income may be attributed to growth in credit score and financing for 2 wheelers, upward push in profits and erratic public shipping system. All that the producers should do is to growth the general penetration. The move, apparently, is to venture the dominance of Hero. The latter has been delivering brisk income at the lower back of sturdy rural income which touched 48% of its general income. Hero MotoCorp has 5,000 sale and carrier contact factors. And it re assets over 45 % of its sales from income in non-city regions in the world’s second-biggest two-wheeler marketplace. To bolster it income and preserve its function it organizes loose car servicing and clinical camps in over 100,000 villages across the country. To have currently joined the agricultural motorbike wagon is Mahindra. As part of its method, it is making an attempt to attain out to the decrease taluk level as lots as viable thru the sub sellers and carrier centers. It is in all likelihood that the employer can obtain its projection, given its community of Mahindra Finance and Mahindra’s tractors department in rural India. Like others, the producer is making plans to installation 500 contact factors in the southern area in the coming years and round 2,000 contact factors throughout the country in the equal duration. And quite a few its projects are occurring in Tier two and three towns. All those traits have come at a time whilst two-wheeler income has slackened more often than not in city regions, because of excessive inflation, a slow economy, low activity introduction and decrease salary hikes. And it makes experience to educate the focal point on in which the possibility is lots better and as a substitute untapped. Key takeaways: However, the bigger a part of the fulfillment will in large part be dictated with the aid of using the tempo at which producers are capable of growth their distribution networks. Apart from it, brand call and right advertising, which comes with sound knowledge of consumer behavior, are different most important factors. Also, figuring out consumer desires and expectancies is n essential step closer to making sure that client desires are understood and as a result satisfied. Subsequently, a longer term dating may be maintained. Observing the traits, it may be concluded that the opposition will most effective be harder and it'll require the gamers to be greater extreme and sincere. Q7) Explain Problem of fake brands?A7) What do you notice whilst you stroll thru markets and haats in rural India? Multitude of merchandise unfold and displayed on cots, ‘thelas’, shanties, stalls and stores which can be lit in the nighttime with the aid of using LED lamps. Shining stainless-steel utensils, plastic buckets, mugs, kitchen and tub utilities; apparel, inclusive of shirts, trousers, blouses, tops, jackets, sweaters, coats, socks, etc. shape an impressive wall of striking mass; cosmetics, soaps, shampoos, hair oils, nail polishes and face mirrors trap the agricultural ladies and children; footwear, sandals, ‘chappals’, of all types; electric items, heaters, bulbs, mixers, grinders proportion area with different family items; meals stalls that show strolling lengths of packaged snacks and meals, and provide quite a number liquids; cell carts that inventory end result and vegetables; interspersed with grains and pulses, jaggery and sugar, salt and spices packed and unfold in jute luggage; toys, books and desk bound for children. A merry move spherical of merchandise synthetic with the aid of using neighborhood small scale units, a few local manufacturers like Ghadi and Fena washing powders; Balaji Wafers and neighborhood bakery cookies, nuts and snacks; lawn tools, earthen pots, line the path; scene dotted with barbers flashing their razors at a soaped countenance, cell recharge danglers flying in the wind, subsequent to ‘bidi’, cigarette and ‘paan’ vendors, ladies’s ‘salwar kameez’ sets, denims and saris, too, do now no longer pass over out in this extravaganza of neighborhood and reasonably-priced wares that weekly and fortnightly are the appeal for village peoples in the vicinity. And there are over 47,000 haats registered in the country and in extra of 25,000 melas, as additionally livestock and animal haats and State Agricultural Fairs provide a large possibility for entrepreneurs to discover rural verbal exchange and forge product and brand consciousness. But to the discerning eye are the complicated question – on this maze of merchandise which can be displayed, that is real, what's reproduction, what's spurious and which might be synthetic neighborhood manufacturers? An exam of number one and secondary records on rural consumer behavior suggests that for everyday intake items human beings are willing to spend much less, buy often, purchase small packs and have a tendency to get lured with the aid of using reproduction and reasonably-priced however properly labeled merchandise. Duplicate merchandise inclusive of soaps, (Lifeboy), toothpaste (colgate), creams, oils, lipsticks, nail polishes all bearing labels having comparable layout and hues because the authentic brand may be effortlessly noticed in bazaars and haats. This merchandise is in all likelihood of doubtful fine, comprise substandard substances and are priced lots less expensive than the important thing brand they imitate. The store receives a hefty margin; so he pushes the product to customers who're taken in with the aid of using his brazen salesmanship. The producers of that merchandise are flying with the aid of using night time operators, working from unlicensed premises, a part of a neighborhood mafia. Until an incident occurs all is properly for all people. Fake merchandise encompasses agrochemicals, paints, liquor, and pharma formulations, among others in a large manner. It is expected that correctly Rs 2,000 crores in line with annum really well worth of spurious insecticides are bought in the country. The discern for pharmacy and liquor income can be in all likelihood lots better. These operations are organized with the aid of using moneyed folks who are in cahoots with like-minded middlemen. The enforcement corporations realize what goes on however all people turns a blind eye till catastrophe occurs. The proliferation of white fly assault on cotton crop in Punjab in Kharif 2015 is a current instance, whilst farmers suffered large damages and losses because of use of spurious merchandise. Subsequent raids on warehouses in diverse mandis discovered a sinister nexus among sellers and producers. There are several comparable incidents in diverse States. The Bhatinda Cancer Express, because the educate is called, can also additionally properly comprise sufferers which have evolved most cancers thru use of spurious insecticides and chemicals. The destructive effect on fitness from spurious Parma merchandise inclusive of cough syrups, vitamins, paracetamol and lots of different compounds should be large, in particular in rural regions in which enforcement is susceptible and the consumer unaware and depending on sellers. Food and liquids are effortlessly infected thru use of less expensive materials and packing material. How do organizations face the threat of spurious and replica merchandise? One, they are able to take criminal moves in opposition to recognized defaulters. Second, they are able to sensitize the government approximately such manufacturers and sellers. Third, they are able to perform applicable and clean to apprehend instructional and promotional campaigns for making customers privy to real merchandise, their availability and expenses. Fourth, the organizations can test that their channel of distribution isn't always concerned in promoting and stocking substandard merchandise. Training program, tracking and counseling will assist in shielding right sellers from the trap of bad practices. Fifth, thru their Associations they are able to alternate facts on providers of spurious and replica merchandise and mutually take moves in coordination with enforcement government. Sixth, the neighborhood NGO’s and SHG’s in conjunction with neighborhood self-Government functionaries can hold a watchful eye at the markets with a purpose to document approximately such incidents. The Government, of course, can use mass media to teach the agricultural human beings approximately the risks of the use of spurious and replica merchandise.Key takeaways: Rural customers should apprehend that they should call for fine from the distributors, shops and producers. Corporate and Government should inspire the unfold of a fine subculture in rural India. Schools, schools and academic establishments also can be roped in to behavior consciousness program. At farm stage, settlement farming is a manner to sell right agricultural practicesQ8) Explain Pricing strategy? A8) StrategyPremium pricing: Premium pricing is a promoting instrument to set greater costs for specific merchandise with the expectation that the greater cost will give the impression the great is better. Premium pricing might be applied to comparative merchandise, where there is a slight expansion in quality. Example Designer garments a few makers will purposely set an exorbitant cost for originator garments trusting that the excessive cost will make an impression of an extravagance decent with better quality. Apple iPhone, iPad items. Apple iPhones are the more costly than comparative contenders. Individuals may liken a greater cost with better quality.Penetration pricing: Penetration pricing is an estimating system that is utilized to rapidly acquire piece of the overall industry by setting at first low cost to attract clients to buy. This estimating methodology is for the most part utilized by new contestants into a market. An outrageous type of entrance estimating is called ruthless pricing. Example Disney+ The streaming diversion market is perhaps the most troublesome spaces for new organizations to enter. Set up brands like Netflix have genuine brand acknowledgment and a steadfast client base. In this way, when Disney+ chose to dispatch its own streaming stage toward the finish of 2019, it concluded that entrance estimating was its absolute best.Economy pricing: No-frills charge. Margins are wafer thin; overheads like advertising and marketing and marketing charges are very low. Targets the mass marketplace and excessive marketplace proportion. Example: Friendly wash detergents; Nirma. Supermarket store brands every grocery store you go into has their own version of popular brands. Companies like Trader Joe’s and ALDI are two examples that capitalize on economy pricing to drive their growth. Generic drugs and medications much like supermarket store brands, there are lots of different types of generic over-the-counter medications available through companies like CVS and Rite-Aid.Skimming method: Skimming is a key, particular strategic technique wherein you focus on the principle idea of a text. When skimming, intentionally skip text that gives subtleties, stories, information, or other elaboration. Rather than intently perusing each word, center around the presentation, part rundowns, first and last sentences of sections, intense words, and text highlights. Skimming is separating the quintessence of the creator's primary messages instead of the better focuses. Beginnings and endings: Read first and last sentences of passages, first and last passages of significant segments, and presentations and outlines of parts. Wheat versus chaff: Read just the measure of text important to decide whether a part presents a fundamental thought or backing for a principle thought. Visual and verbal cues: Watch for signal words and expressions that demonstrate a creator's course (e.g., notwithstanding, albeit, additionally, notwithstanding).Example: the earliest expenses for cell phones, VCRs and different digital items in which some gamers dominated attracted decrease value Asian gamers. Key takeaways: Premium pricing might be applied to comparative merchandise, where there is a slight expansion in quality. Skimming is a key, particular strategic technique wherein you focus on the principle idea of a text. No-frills charge. Margins are wafer thin; overheads like advertising and marketing and marketing charges are very low. Penetration pricing is an estimating system that is utilized to rapidly acquire piece of the overall industry by setting at first low cost to attract clients to buy.Q9) Explain pricing objectives?A9) Achieving a Target Return on Investments: This is the maximum vital goal which each issue desires to obtain. The goal is to obtain a sure fee of go back on investments and body the pricing coverage if you want to obtain that fee. For instance, the priority can also additionally have a fixed goal of 20% go back on funding and 10% go back on investments after taxes. The goals can be a quick term (commonly for a year) or a long time. It is recommended to have a long time goal. Price Stability: This is every other vital goal of an enterprise. Stability of expenses over duration displays the performance of an issue. But in practice, as a consequence of converting charges from time to time, charge balance can't be achieved. In the marketplace in which there are few sellers, each vendor desires to keep balance in expenses. Price is about with the aid of using one manufacturer and others observe him. He acts as a pacesetter in charge fixation. Achieving Market Share: Market proportion refers to the percentage of the employer in the general income of the product in the marketplace. Some of the issues whilst introduce their product in the aggressive marketplace need to obtain a sure proportion in the marketplace in the preliminary stages. In the longer term the priority can also additionally intention at attaining a significant part of the marketplace with the aid of using promoting its merchandise at decrease expenses. Prevention of Competition: Modern business installation is faced with reduce throat opposition. Pricing may be used as one of the powerful manner to combat in opposition to the opposition and enterprise rivalries. Lesser expenses are charged with the aid of using a few companies to hold their competition out of the marketplace. But an organization can't have enough money to rate fewer expenses over a protracted duration of time. Increased Profits: Maximization of earnings is one of the primary targets of an enterprise. An organization can undertake any such charge coverage which guarantees large earnings. However, such companies also are anticipated to discharge sure social responsibilities additionally.Key takeaways: This is achieved whilst a brand new product is being launched. It is known that expenses could be raised as soon as the advertising duration is over and marketplace proportion targets are achieved. In the longer term the priority can also additionally intention at attaining a significant part of the marketplace with the aid of using promoting its merchandise at decrease expenses.Q10) Explain Promotional strategies segmentation, targeting and positioning in rural market?A10) SegmentationA marketer has certain important sources of data available and can consider several variables, to segment these markets. There are no hard and fast rules regarding what variables to choose. The following variables seem to be relevant to most of the rural areas in India and can be considered in determining the different market segments:Geographic location Population density Gender and age Occupation Income levels Socio-cultural considerations Language and literacy Lifestyle Other than the conventional methods of segmentation, we can also use few more variables as shown below:Land holding pattern (size of holding) Irrigation facilities Cropping pattern Educational level Proximity to cities Occupation categories (laborer, farmer, employees etc.) TargetingUtility: A rural consumer appears for fine merchandise that provide fee for cash. Due to low shopping electricity, rural consumer prefers merchandise catering to particular rural desires with tangible advantages and suitable pricing Outreach: Since many rural markets lack product penetration, the high-satisfactory possibility to promote merchandise to them is weekly rural haats, melas and spiritual congregations. Such occasions make certain that a big segment of the population witnesses the product three. Local mediums: Rural India has confined or no gets entry to conventional media structures inclusive of TV and newspapers even today. Thus, speaking to them of their neighborhood dialect and the use of mediums like road shows, radio, out of doors marketing and marketing, festivals and weekly bazaars might be greater powerful.PositioningProduct attributes and advantages: Associating your brand/product with sure traits or with sure useful fee · Product charge: Associating your brand/product with aggressive. Pricing: Associating your brand/product with excessive fine.Product quality: Associating your brand/product with a particular use. Competitors: Making customers suppose that your brand/product is higher than that of your competitor a perceptual map is used to expose consumer notion of sure manufacturers. The map lets in you to discover how competition is located relative to you and to discover possibilities in the marketplace. Market Positioning refers back to the potential to persuade consumer notion concerning a brand or product relative to competition. The goal of marketplace positioning is to set up the photo or identification of a brand or product in order that customers understand it in a sure manner.Key takeaways: An advertising method is an actionable plan to persuade human beings approximately your enterprise, generate greater leads, and improve client engagement. It visualizes a way to carry out your advertising method and verbal exchange, who to goal as your target market, and in which and whilst to execute the advertising plan. Many entrepreneurs spend greater on enterprise advertising every year, however they acquire much less. There are too many alternatives and advertising voices, so that you should make certain that your messages are simply attaining the human beings you need to technique whilst you sell your enterprise. What’s greater, it's miles very tough to transform human beings into clients without resonating advertising voices to create emotional connections and arouse pastimes and needs on your offers.
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