RURAL MARKETING Definition: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 thereby achieving the goals of the organisation. Rural areas:Rural areas are large and isolated areas of an open country with low population density. A countryside refers to rural areas that are open. Explain the nature and scope of rural marketing? Ans: Meaning of Rural marketing:Rural marketing is promotion of a companys products in the rural markets by using strategies which differ from that of the urban market. The rural market is more price-sensitive. Nature of Rural market:1. Large, diverse and scattered market:Rural marketing in India is large and scattered into a number of regions. There are not many shops available to market products. 2. Major income of rural consumers is from agriculture:Rural prosperity is interlinked with agricultural prosperity. In the event of crop failure, rural income is directly affected. 3. Traditional outlook:Villages develop slowly and have a traditional outlook. Change is a continuous process but rural people accept it gradually. This is changing but it is changing, although slowly, due to literacy especially in the youth who have begun to change the outlook in the villages. 4. Standard of living and rising disposable income of the rural customers:It is known that majority of the rural population lives below the poverty line and has low literacy rate, low savings etc. Today, rural customers spend money to get value and are aware of the happenings around them. 5. Rising literary levels:It is a well documented fact that approximately 45% of rural Indians are literate. Awareness has increased and farmers are well informed about the world around them. They are also educating themselves on the new technology for a better life style. 6. Diverse socio economic background:Due to differences in geographical areas and uneven land fertility, rural people have different socioeconomic backgrounds, which ultimately affect the rural markets. 7. Infrastructure facilities:Infrastructure facilities like warehouses, communications systems and financial facilities are inadequate in rural areas. Physical distribution is a challenge to marketers who have found innovative ways to market their products. Scope of marketing:1. Large population:According to the 2011 census, 72% of the total population is rural population and it is scattered over a wide range of geographic area. 2. Rising rural prosperity:Average income level has improved due to modern farming practices, contract farming, industrialization, migration to urban areas etc. 3. Growth in consumption:There is a growth in purchasing power of rural consumers. The average per capita house hold expenditure is Rs. 382.

4. Change in lifestyle:The Lifestyle of rural consumers has changed considerably. 5. Market growth rate higher than urban:The growth rate of fast moving consumer goods [FMCG] market and durable market is high in rural areas. The rural market share is more than 50% for products like cooking oil, hair oil etc. 6. Life cycle advantage:The products which have attained the stage of maturity in the urban market are still on their stage of growth in the rural market. 7. Rural marketing is not expensive:Promotion of consumer durables inside a rural market, it costs Rs 1 crore whereas in urban areas it runs into millions.

What is rural market? Importance of rural marketing ? Ans:Meaning of rural market:On account of the green revolution, rural areas are consuming a large quality of industrial and urban manufactured products. In this context a special marketing strategy namely rural marketing has emerged. But often, rural marketing is confused with agricultural marketing The latter denotes marketing of produce of rural areas to the urban consumers or industrial consumers, whereas rural marketing involves delivering manufactured or processed inputs or services to rural producers or consumers. Importance of rural market:1. Large market:Approximately 75% of Indias population resides in around 6, 38,365 villages of India spread over 32,00,000 Sq. kilometer. 41% of Indias middle class resides in rural areas. The Indian rural consumer lives in 6,00,000 villages spread across the country and they account for over 70% of population of the country. For several product categories, rural markets account for over 60% of the national demand. 2. Higher purchasing capacity:According to a study conducted by NCAER [National Council for Applied Economic Research], there are as many middle income households in the rural areas as there are in the urban areas. There are almost twice as many lower middle income households in rural areas as there are in the urban areas. Because of this purchasing power of power of rural people is on the rise. 3. Market growth:Hariyali kissan bajar was set up by Sri Ram Consolidated Limited to facilitate scale of agriculture inputs such as fertilizers, pesticides farming equipment, seeds etc. Shakti- through the state governments and NGOs involved in microfinance women entrepreneurs in villages are identified to act as local distribution and sales point for HUL products. 4. ITC:ITCs internet enabled rural interface to help scale of agricultural outputs is presently operational in the markets of 6 states and is growing at the rate of 3-4% p.a. Define size of rural market and discuss? Ans: According to the census of India, areas that would qualify as being rural must have clear surveyed boundaries without a municipality, corporation or board, and with density of population not more than 400 Sq.km and with at least 75% of the male working population engaged in agricultural activities. According to this definition there are 6,38,000 villages in the country. Of these villages, 0.5% have a population of about 10,000 and 2% have a population between 5,000 and 10,000 around 50% have a population which is less than 200.

Interestingly, the FMCG and consumer durable companies, any territory that has more than 20,000 & 50,000 population respectively do not qualify as being a rural market! According to the census of India 2001, there are more than 4000 towns in the country. It has classified them into 6 categories. Around 400 class-I to towns with 1,00,000 and above population, 498 class-II towns with 50,000-99,999 population, 1,368 class-III towns with 20,000-50,000 population, 1,560 class IV towns with 10,000-19,999 population It is mainly the class-II & class-III towns that markets term as rural. Demographical details of Indian rural market About 285 million people live in urban India where as 742 million people reside in rural areas. The No. of middle income & high income households in rural India is expected to grow from 46 million to 59 million. Size of rural market is estimated to be 42 million households and the rural market has been growing at 5 times the rate of the urban market. More government based rural development programs. Increase in agricultural productivity leading to growth of rural disposable income. Lowering of difference between taste of urban and rural customers. The Indian rural market with its vast size and demand offers great opportunity to marketers. Our nation is classified in around 450 districts & approximately 6, 38,000 villages 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 & tooth powder. In fact, the rural market for FMCG products is growing much faster than the urban market. Explain the distinction between rural market & urban market? Ans: Definition:Rural marketing is similar to simple marketing. Rural marketing differs only in terms of buyers. Here, the target market consists of customers living in rural areas. Thus rural marketing is application of marketing fundamentals {concepts, principles, theories etc} to rural marketers. Rural marketing is a process of developing, pricing, promoting and distributing rural goods and services leading to desired exchange with rural customers to satisfy their needs and wants, and also to achieve organizational objectives. Differences between rural marketing & urban marketing:Although rural marketing offers immense potential, marketers used to recognise the fact that there are considerable differences in many aspects including the nature, characteristics, buying patterns & behavior of rural consumers when compared to urban consumers. While the urban economy thrives mainly on secondary and tertiary activities such as manufacturing & services, the rural economy is driven mainly by primary activities such as agriculture, fishing & forestry. The consumer demand and consumption patterns also differ across rural and urban areas. In many products, rural consumption now accounts for a larger share than the urban market. In washing soaps the rural share is over 60%. In popular bath soaps it is more than 50% and in batteries it is more than 56% and it is the same case with packed tea and hair oils What are the problems of rural marketing? Ans: The problems of rural marketing are continuing in spite of efforts to improve in the 9th five year plan. The position is improving but slowly. The rural marketer has many challenges. But the vast & expanding markets call for good marketing strategists to create win-win situations to all parties in the chain of rural marketing. The problems of rural marketing are as follows: Under-Developed Population

 Under-Developed market Improper communication facilities Many Languages Vast & uneven spread Low Per-Capita income Poor Infrastructure Facilities Seasonal Demand Fewer distribution channel 1. Under-Developed Population:Rural society is bounded by tradition, old customs and practices. The impact of modern science & technology has made very few changes as the old beliefs are still continuing. 2. Under-Developed Market:Rural markets are not developing as much as they should owing to inadequate banking & credit facilities. Rural market needs banks to enable remittance, to transact on credit basis and to obtain credit support from the bank. At present every 48th village in India has a bank. 3. Poor or Improper Communication Facilities:Most villages even today largely depend on telegrams and phones for their communication needs. Print media and visual media [Television, cinema, etc] reaches only about 20% of rural Indians. 4. Many languages:India is a country of many languages. Language becomes a barrier in effective communication in the marketing efforts. The languages vary from state to state, place to place, district to district, etc. There are now 18 scheduled national languages. 5. Vastness & unevenly spread:Rural market consists of approximately 75 crore rural consumers spread across approximately 6,38,365 villages. Despite urban migration, the rural areas still have a sizeable population. 6. Low per capital income:Most farmers have small lands. This results in low per capita income. And low per capita income results in low consumption pattern as compared to the urban population. Hence, marketers face challenges in rural marketing when it comes to decisions regarding quantities, frequency of distributions, package size etc. 7. Poor infrastructure facilities:Infrastructural facilities like roads, warehouses, power, etc are inadequate in rural areas. Infrastructural costs are very high and impact the rural market activities adversely. 8. Seasonal demand:The rural economy is seasonal, rural people have two seasons namely khariff and rabi. Villages have money mostly in these seasons. As village incomes are seasonal, so is the demand.

RURAL MARKETING ENVIRONMENT Discuss about the rural marketing environment? Ans:- An environment is that which surrounds an organization. It is the sum total of external factors and is made up of tangible and intangible factors which are both controllable and uncontrollable. Rural marketing is basically focused marketing activity of an organization. The environment outlines threats and opportunities of the market. The Rural marketing environment is complex and is changes continuously. The marketing organization should foresee and adopt strategies to change as per the requirements of the people. A company that doesnt change perishes. An adaptive organization can stand competition or have a modest growth. An organization which makes its effective marketing plans and its own strategies or a creative one will

prosper and create opportunities in the changing environment. Rural marketing environment changes will be in the area of: a) Social change b) Economic change c) Ethical change d) Political change e) Physical change f) Technological change a) SOCIAL CHANGES:- The social factor consists of three factors: 1) Sociological factor:Consumer 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. 2) Anthropological factors:The reasonable cultures and subcultures and living patterns influence advertising sales promotion, selling strategies and packing. The consumers in east India have different taste. 3) Psychological factors:Consumer behavior, attitudes, personality and mental make-ups are unique. The study of behavior is vital to evolve marketing mix. b) Economic factors:1) Competition:A good and healthy competition brings in good overall improvement in economic activities. It also brings good quality, good quantity and price. 2) Consumers:The consumer today is quite knowledgeable and choosy. His progress and well being should be the aim of any economic activity. 3) Price:Pricing is a delicate issue where it should be market friendly, not too high or too low. The marketers have to keep it in mind, to get decent returns on investment and effects of producers and marketers. 4) Ethical forces:Business minus ethical values brings degeneration. In the long run it brings problems. No standardization, exploitation and falsification are main unethical values in such organization. 5) Political forces:The government policies towards trade and commerce, internal taxation and preferential treatments have an influence on the marketing strategies. The marketing environment has to meet the political frame work in which a government is made to work. 6) Physical forces:The infrastructure availability for movement and storage of goods plays an important role in the physical distribution of goods and them reaching the consumers. Efficient and cheaper logistics help the market in a big way. 7) Technological force:The fast changing science and technology gives a cutting edge to the marketing of products. The changes warrant changes in marketing, inputs and strategies. Faster and efficient communication and transport systems have sped up the market. The capital is made to work faster and harder so in the case with the marketer, He 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.

What are the factors influencing rural consumer behavior? ANS:- The various factors that affect buying behavior in rural India are: 1) Environment of the consumer:- The environment or the surroundings in which the consumer lives has a very strong influence on the buying behavior. E.g.:- electrification and water supply effect demand for durables. 2) Geographic influence:- The geographic location in which the rural consumer is located also speaks about the thought process of the consumer. For instance, villages in south India accept technology quicker than in other parts of India. Thus, HMT sells more winding watches in the north while they sell more quartz watches in the south. 3) Influence of occupation:- Land owners can buy more durables than agricultural laborers. 4) Place of purchase:- Companies need to access the influence of the retailer on both consumers at village shops. 5) Creative use of product:- The study of products provides indicators to the company on the need for education and also for new product ideas. E.g.:- Godrej hair dye being used as a paint to color the skin and horns of buffaloes. Washing machines are used for making lassi. 6) Brand preference and loyalty:- the people in rural market do not have brand preferences but they give importance to loyalty towards the product. What are the factors influencing Rural marketing operations? ANS: - 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. FACTORS INFLUENCING OR CONTRIBUTING CONSUMER BEHAVIOUR:a) Environmental b) Cultural c) Social d) Personal e) Psychological a) Environmental :I. Economic factors:The agricultural and rural development has enabled our country to achieve self sufficiency in food production and we are now exporting a variety of agricultural commodities to foreign countries. Favorable monsoons during the last 10 years have led to increase in crop yields and rural income. In addition, diversification of 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. II. Political factors:The government has taken initiative for economic development of rural areas and has invested heavily in agriculture, irrigation, electricity, khadi, village industries and infrastructure facilities such as roads, communication, hospitals, school, and banking. The initiatives certainly led to rural prosperity and opportunities for the marketers. III. Technological development:The rapid expansion of telecommunication facilities and mobile phones has provided opportunities for rural people to keep in touch with men and markets. Development of TV networks and reasonable channels has enabled the marketers to pass on the message about products and services to rural people. In rural areas especially in large villages and villages near to towns and cities, children and youth have accused to information such as job opportunities, national news, weather conditions, bank loans, IT and internet are sure to spread up exchange of information in rural india though at a slower rate compare to the urban market

IV. Legal :The government has come out with legislative measures to protect the interest of consumers. Some of the important ones are:a. Money lenders:The money lenders advance long term loans against security of land over a period of time to manipulate the records and seize the land. The government protects the assets of farmers from money lenders. b. Consumer protection act:Consumer protection act provides protecting the rights and interest of consumers and we have a quasi judicial machinery operating at 3 levels i.e. district forum, state forum and national forum. V. Cultural factors:a) Culture and sub culture :Culture represents an overall heritage and a distinctive form of environmental adaption by the whole society of people. Culture is a system of shared beliefs and customs that influences the behavior of consumers. Traditional life, traditional occupation, traditional beliefs are the features of rural life. Culture provides people with a sense of identity and an acceptable behavior within a society. Technological advances, education and travel have considerable influence on culture and change the rural lifestyle. Culture offers direction and guidance to the members of a society in all facets of life. It provides methods of satisfying physiological, personal and social needs. b) Sub culture:It exists 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. c) Social class:Consumer behavior is determined by social class to which they belong and is determined by a combination of factors like education, occupation, income and assets. It is seen that over a period of 10 years, there has been considerable reduction in the 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. VI. Social factors:a) Family:Family is a group of persons related by blood, marriage or adoption who reside together. It is a basic social group and consists of individuals known as members. The 3rd generation family is very common in rural areas. The head of the family provides economic security to family members. The members of a family play different roles such as influencer, decider and purchaser in the buying process. Personal values, attitudes and buying habits have been shaped by family influences. b) Reference group:It includes family and friends with whom an individual interacts on a face to face basis. Word of mouth communication is a process by which the messages are passed within the group from one member to another member. The consumer develops positive opinion towards a product or service based on admiration (cricket players), aspiration (film stars) or empathy. The consumer thinks that if he uses it, it must be good and if I were to own and use it, then I too will be like him. VII. Personal factors:a) Age and life cycle:Life cycle of a person begins with child birth, moves to infancy, teenage, adult, middle age, old, and then ends with death. Under each stage buying behavior is different. b) Occupation:About 500 million of population depends upon agriculture for a living. Income from agriculture is seasonal and therefore demand particularly consumer durables is high during post harvested period and festivals. Many farmers have diversified into fish culture and small scale industries In order to reduce

their dependence on farming and to ensure regular income. This leads to increase in demand for consumer durables. c) Economic circumstance:-Rural income is seasonal compared to an urban consumer who receives regular income regarding saving habits, traditionally rural people prefer to invest in jewelry and fixed deposits in banks and posts offices. A farmer would like to invest these funds for development of agriculture and buying lands. Another interesting observation is that for the same income level, a rural consumer has a relatively high disposable income. d) Lifestyle:Lifestyle studies how people spend their money and time in day to day activities. The lifestyle dimensions are activities and demographic features such as age, gender, occupation, education, and income. Rural consumers prefer to spend their spare time in activities. Such as visiting mills i.e. Community and religious fairs, companies can use such meeting places for product promotion. e) Personality and self concept:Personality is a unique combination of different individual characteristics. We find that many individuals are similar in terms of one or more characteristics, but they are not alike in all characteristics. Personality is a combination of factors such as sociability, self confidence and dominance. Personality influences in many ways. VIII. Psychological factors:a) Motivation:When a buyer purchases a product or service, he has a reason. Motive is a strong felling, desire or emotion that makes the buyer to take decision to buy every human activity is a result of motivation. Each person is motivated by his needs and satisfaction of one need shows that rural consumers are satisfied by meeting the 2needs i.e. physical and security need, where as urban consumers would like to satisfy social and needs . Motives can be also classified as psychological and psychogenic motives. In rural areas there exits 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. b) Perception:All consumers are not alike; they see the world in their own special ways. For instance, all the members of the family have viewed a particular advertisement in different ways. This is because needs, wants, Values, attitudes and personal experience vary from person to person. Similarly, consumers perception means what he thinks about the product, producer or the brand. Consumers action, buying habits, consumption habits are based on perception and therefore the motor should have good understanding of perception of consumers. c) Learning:It 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, etc. The marketers have to educate the consumers through rural- specific promotion, media and methods. d) Belies and attitudes:In general, attitude is a state of mind or feeling. Attitude indicates our feeling about a product, service, brand and shop whether we are positively or negatively disposed towards the object or class of objects. Consumer attitudes are composed of beliefs, feelings and behavior intentions towards a product, brand or store. Belief may be positive, negative or neutral. The belief that consumer holds need not be correct. Consumers also hold certain feelings towards the product and these feelings are based on the beliefs.

Examples:1) Many rural consumers believe that cold drinks are harmful and they prefer lime juice, butter milk etc. Change of attitudes and beliefs is very low in the case of rural consumers. Once he is convinced, he will continue to use the product and become a loyal consumer. 2) Majority of lower and middle income group continue to use lifebuoy soap and about 70% of the sales of lifebuoy are in rural and semi urban areas. RURAL MARKET SEGMENTATION Market segmentation means dividing the heterogeneous market into homogeneous sub units. Here, heterogeneous means consider the market as a whole and refers mass marketing. Homogeneous sub units means those 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 that different people have different preferences. The following are the basic market preferences: Homogeneous preferences where consumers have roughly the same preferences. Diffused preferences where consumers are scattered throughout the market by their preferences. Clustered preferences were consumers are found in distinct preference groups. Mass marketing:In the early period of the 20th century many companies practiced mass production and mass distribution. As the economy evolved and societies became civilized, consumer choice and requirements came into focus. Until now the rural market was considered as a homogeneous mass and worse than the Indian market till some 20 years ago. Some companies depend on mass marketing while many do not. Segment marketing:The principle of segment marketing rests upon the realization that buyers differ in their needs, wants, demands and behaviors. The need for segment marketing arises when: Consumers have become more diverse, sophisticated and choosy. Competition has become tough. Niche marketing:A niche is very small group with a different set of traits, who seek a special combination of benefits. Niche marketing identifies special sub groups within larger segments and offers different products and services. Micro marketing:Micro marketing involves tailoring products and programs to suit the taste of specific locations and individuals. It includes local marketing and individual marketing. Local marketing:- It is involved in the programs to suit the taste of specific locations and wants of local groups on a geographical basis. Individual marketing:- Individual market is customized marketing or one to one marketing. Tailoring units, hotels, tourist operators provide individualized services for example building contractors build houses or flats to specific requirements of customers. Types of rural market segmentation:Demographic factors:Demographic factors are taken into detailed consideration for market segmentation of consumer goods and fast moving consumer goods (FMCG). In case of rural marketing i.e. to sell outside goods in rural areas, demography came into the picture. However the categories are much reduced. Some of the segmentations are as below.

Occupational segmentation (or) sociological segmentation:This segmentation is based on economy-wise categorization. This reflects the purchasing power of a farmer and therefore the purchase power of his family. They are: Artisans, farm Laborers Small farmers Tenant farmers Medium level farmers Large farmers Very large farmers, zamindars Artisans and others: This covers carpenters, blacksmiths, handy-crafts, people who are unemployed. Tenant farmers: People who Work on rented land to share the crops with owners of the land. Small farmers: Farmers who own small farms or jointly owned farms for getting food. Medium level farmers Farmers who own small farms are jointly owned farms for getting food. Large farmers(or)rich farmers Farmers who have large farm lands Very large farmers, land lords (or)zamindars Zamindars are rich money lenders and business men who own large land areas and maintain a Large sized farm labor. Normally they spend time in nearby urban areas with politicians. From the above the small farmers and tenant farmers will struggle for their basic needs but the medium level farmers struggle for comforts. However, the large farmers enjoy a comfortable lifestyle. Hence, the marketers target only large farmers and very large farmers for segmenting the market. Thomson rural market index(TRMI)segmentation Hindustan Thomson Associates Ltd developed a guide to market segmentation in 1972 and revised it in 1986. They collected data in 335 districts based on 26 variables. Finally they arrived on 10 selected variables having strong co-relation to rural market potential. Agricultural laborers Gross cropped area Gross irrigated area Area under non-food crops Pump sets. Fertilizers consumption Tractors Rural credit Rural deposits Village electrified. Based on these factors, the districts are classified as A, B, C, D and E. Which are in order of high potential market to low potential market. LINQUEST This method is software developed by Initiative Media on data along the following Parameters: Demographic Agriculture

 Income Literacy Civic amends. As per the product to be launched, the marketer would be interested in certain parameters like literacy levels, income levels, bank deposits, accessibility (rail, road, and schools etc). in the software the marketer can give weighted average to different factors for Eg:- To launch new audio cassette recorders, parameters could be villages above 1000 population and monthly income 2000 and distance from nearest towns within 30kms. BRANDING:The rural consumer likes to stick to brands that give value for money Importance of branding 1. Branded product can be easily recognized by the customer in the retail shop it offers protection to the consumer as it identifies the firm behind the product. 2. Branding enables the firm assured control over market. It creates an exclusive market for the product. 3. If a firm has one or more lines of branded goods it can had a new item to its list easily & the new item can enjoy all the advantages of branding immediately. Characteristic of branding Attributes &benefits:Branding of a product plays an important role to attract the rural customers because they mostly believe in the brands, just by seeing branded products they will purchase assuming that they will be satisfied by product. Values :By 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. Culture:By seeing the brand the customer assumes the product is efficient and they also assumes high quality. Personality:The person who is using that product Types of brands 1. Individual brand name Each 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 etc. 2. Family brand name Family 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 rejected by the consumers or customers the prestige of all under the family brand may be adversely affected. The manufacturers have to take extraordinary care to guard against the danger family brand name enables creation of strong shelf. It helps to secure quick popularity it is preferable to have separate brands for each product for eg:- Amul for milk products, pounds for cosmetics etc 3. Umbrella brand name We may all products such as chemicals, engineering goods, automobiles etc. Manufactured by the Tata concerns will have the Tata as one umbrella brand. Such a device will also obtain low promotion cost and minimize however experience 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.

4. Combination device Data house is using combination device each product has individual name to indicate the business house producing the product eg:- Tata Indica, side by side with the product image we have the image of the organization also many companies use this device profitably. 5. Private or middlemans brand Branding can be done by manufacturers or distributors such as wholesalers, large retailers. In India this practice is popular in the wooden, sport goods and searches other industries it helps small manufacturers who have to rely on the middlemen for marketing. It 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. Manufacturers make both national and private or middleman brands. Consumers of the private or dealers brand. Some of the brand names that have created lasting impact on rural consumers are as follows: Every day batteries: Battery with cat as a symbol Lifebuoy Asian paints mascot Dabar Chawanprash Parle Parachute Amul Zandu balm Tata salt Nirma Textile: Chermas, Kumar shirts. Q. Explain the brand awareness in rural marketing? Ans: Rural product development: The rural market is a fast growing one and has a huge population with a great level of disposable income to encase this; products have to be specifically developed to meet the creeds of rural market sometimes existing 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 expertise in this area. Rural branding: 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. Based on this communication campaigns products have to be developed with a lot of rural sensitivity. Rural market research: Rural market behave most differently from urban markets. While many marketers have tried to market their products in rural areas. Just a hand full of sum only has succeeded. A strong insight into rural consumer behaviour and sensitivity to their values and beliefs is essential to upgrade the rural market research not just gathering data but analyzing 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. Besides mass and outdoor media, rural extravaganza (cultures) like temple, festival, melas, and other events where the villagers come together can be used for promotions. Rural events: In the rural context, one of the best ways to capture the attention of the audience is through event management. Since rural areas have limited venues for entertainment, conducting an event in rural areas can bring a good response.. Rural direct marketing campaigns: Direct 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 base creation and management: Marketing branding and promotional activities in rural context 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.

RURAL MARKET SEGMENTATION Market 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. Homogeneous 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: Homogeneous preferences where consumers have roughly the same preferences. Diffused preferences where consumers are scattered throughout the market by their preferences. Clustered preferences were consumers are found in distinct preference groups. Degree of segmentation:The segmentation is considered as a process with two polar points from zero to complete, four distinct segment approaches are identifiable as follows: Type Mass marketing Segment Marketing Niche Marketing Micro marketing Approach Considers all people as a bunch. Identitys people as a differing group Serves very few groups of people. Focus on individuals or very small groups Mass marketing:In the early period of the 20th 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 Indian market till some 20 years ago. Some companies depend on mass marketing while many do not. Segment marketing:The principle of segment marketing rests on the realization that buyers differ in their needs, wants, demands and behaviors. The need for segment marketing arises when Consumers have become more diverse, sophistically and choosy. Competition has become tuff. Niche marketing:A niche is very small group with a different set of traits, who seek a special combination of benefits. Niche marketing identifies special sub groups within larger segments and offers different products and services. Micro marketing:Micro marketing involves tailoring products and programs to suet the taste of specific locations and individuals. It includes local marketing and individual marketing. Local marketing:- It involves in the programs to suit the taste of specific locations and wants of local groups on a geographical bases.

 Individual marketing:- Individual market is customized marketing or one to one marketing. Tailoring units, hotels, tourist operators provide individualized services for example building contractors builds houses of flats to specific requirements of customers. Types of rural market segmentation:Demographic factors:Demographic factors are taken into detailed consideration for market segmentation of consumer goods and fast moving consumer goods (FMCG). In case of rural marketing i.e. to sell outside goods in rural areas, demography came into the picture. However the categories are much reduced. Some of the segmentations are as below. Occupational Segmentation(or)sociological segmentation:This segmentation is based on economy vice categorization. This reflects the purchasing power of a farmer and therefore the purchase power of his family they are Artisans, farm laborers Small farmers Tenant farmers Medium level farmers Large farmers Very large farmers, zamindars Artisans and others This covers carpenters, blacksmiths, handy-crafts, people are unemployed. Tenant farmers Working on rented land to share the crops with owners of the land. Small farmers Who own small farms are jointly owned farms for getting food. Medium level farmers Who own small farms are jointly owned farms for getting food. Large farmers(or)rich farmers Who have large lands and all local leaders they spend types in urban areas and doing other occupation. Very large farmers, land lords(or)zamindars Zamindars, rich money lenders and business men who owned big size lands and maintain large size farm labor. Normally they spend time in nearby urban areas with politicians. From the above the small farmers and tenant farmers will struggle for basic needs but the medium level farmers struggle for comforts. But the large farmers will not struggle for basic needs and comforts. So the marketers target only large farmers and very large farmers for segmenting the market. Thomson rural market index(TRMI)segmentation Hindustan Thomson associates ltd developed a guide to market segmentation in 1972 and revised it in 1986. They collected data in 335 districts based on 26 variables finally they arrived on 10 selected variables having strong co-relation to rural market potential. Agricultural laborers Gross cropped area Gross irrigated area Area under non-food crops pump sets. Fertilizers consumption Tractors

 Rural credit Rural deposits & village electrified. Based on these factors, the districts are classified as A,B,C,D&E. Which are in order of high potential market to low potential market. LINQUEST This method is software developed by initiative media on data along the following parameters Demographic Agriculture Income. Literacy & Civic amends. As per the product to be launched, the marketer would be interested in certain parameters like literacy levels, income levels, bank deposits, accessibility (rail, road, and schools etc). in the software the marketer can give weighted average to different factors for Eg:- To launch new audio cassette recorders, parameters could be villages above 1000 population and monthly income 2000 and distance from nearest towns within 30kms. BRANDING:Branding is a practice of giving specified name the specified name creates individuality in the product and it can be easily recognized from rival product the term brand is broadly applied to all identifying such as trade names, trademarks trade symbols etc e.g.:- Pepsi, lifebuoy are brand names it is recognizable by sight but hes not normally pronounceable. The rural consumer likes to stick to brands that give value for money Importance of branding 1. Branded product can be easily recognized by the customer in the retail shop it offers protection to the consumer as it identifies the firm behind the product. 2. Branding enables the firm assured control over market. It creates an exclusive market for the product. 3. If a firm has one or more lines of branded goods it can had a new item to its list easily & the new item can enjoy all the advantages of branding immediately. Characteristic of branding Attributes &benefits:Brands of a product plays an important role to attract the rural customers because they mostly believe in the brands, just by seeing branded products they will purchase assuming that they will be satisfied by product. Values :By 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. Culture:By seeing the brand the customer assumes the product is efficient and they also assumes high quality. Personality:The person who is using that product Types of brands 1. Individual brand name Each 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 etc. 2. Family brand name Family 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 rejected by the consumers or customers the prestige of all under the family brand may be adversely affected. The manufacturers have to take extraordinary care to guard against the danger family brand name enables creation of strong shelf. It helps to secure quick popularity it is preferable to have separate brands for each product for eg:-Amul for milk products, pounds for cosmetics etc 3. Umbrella brand name We may all products such as chemicals, engineering goods, automobiles etc. Manufactured by the Tata concerns will have the Tata as one umbrella brand such a device will also obtain low promotion cost and minimize however experience 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. 4. Combination device Data house is using combination device each product has individual name to indicate the business house producing the product eg:- Tata Indica, side by side with the product image we have the image of the organization also many companies use this device profitably. 5. Private or middlemans brand Branding can be done by manufacturers or distributors such as wholesalers, large retailers. In India this practice is popular in the wooden, sport goods and searches other industries it helps small manufacturers who have to rely on the middlemen for marketing. It 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. Manufacturers make both national and private or middleman brands. Consumers of the private or dealers brand. `1 Some of the brand names that have created lasting impact on rural consumers are as follows: Every day batteries:- Battery with cat as a symbol Lifebuoy Asian paints mascot Dabur chawan prakash Parle Parachute Amul Zandubalm Tata salt Nirma Textile:- Chermas, Kumar shirts. Q. Explain the brand awareness in rural marketing? Ans: Rural product development:The rural market is a fast growing one and has a huge population with a great level of disposable income to encase this;

products have to be specifically developed to meet the creeds of rural market sometimes existing 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 expertise in this area. Rural branding:- 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. Based on this communication campaigns products have to be developed with a lot of rural sensitivity. Rural market research:- rural market behave most differently from urban markets. While many marketers have tried to market their products in rural areas. Just a hand full of sum only has succeeded. A strong insight into rural consumer behavior and sensitivity to their values and beliefs is essential to upgrade the rural market research not just gathering data but analyzing 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. Besides mass and outdoor media rural extravaganza (cultures) like temple, festival, melas, and other events where the villagers come together can be used for promotions. Rural events: - In the rural context, one of the best ways to capture the attention of the audience is through event management. Since rural areas have limited venues for entertainment, conducting an event in rural areas can bring a good response.. Rural direct marketing campaigns: - Direct 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 base creation and management:- Marketing branding and promotional activities in rural context 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. Q) What is meant by Product? And explain it with different strategies in rural market? Ans: Product is the most tangible and important dingle component of the marketing program. Without product, there is nothing to distribute promote and to price. Product is a vehicle by which a company provides consumer satisfaction. A product is a bundle of benefits assembled in an identifiable form. In simple terms, products are anything that satisfies human wants. The product mix includes product quantity, features, benefits, design, style, colors, brand packaging, labeling, services and warranties. Product market strategies:Markets have the following alternations to increase market share and profits Existing product New product Existing markets Market penetration Product development (or) product

differentiation New markets Market development Diversification Market penetration:- It involves expansion of sales of existing products in existing markets by selling more to present customers or gaining new customers in existing market. The firm can market its present products to existing markets. This is done through more aggressive marketing mix. Market development:- In Market development a present product is introduced to a new market or a segment . Market development is the creation of new market by discovering new application for existing goods. This is another alternative to expand market opportunity, prolong product life cycles, profitability and survival. Ex:- many companies are extending their activities to rural market to increase sales volume of products like mineral water, chocolate, mobile phones etc. Product development:- Product development occurs when a firm introduces new products to a market in which it is well established. Product development is the introduction of new products in present market. Ex:- New syntactic fibers are known for textile products. The firm may decide to create new products for existing market. Diversification:- Diversification occurs when a firm seeks to enter a new market with completely new product. The innovations are introduced for the first time in the new markets. The strategy is risky but the innovator can have speculator results. Product strategies in rural market:- product strategies used by companies in rural markets are given below Sturdy products:- most of the rural consumers believe that heavier the item, higher the power and durability, they prefer tough and long lasting product. EX:- bullet motor cycle continuous to be popular in villages; royal Enfield sells about 65% of two wheelers in semi urban and rural areas; ambassador cars continuous to be popular in rural areas. Designing products:- The companys can come out with new products or promote existing products to suit field conditions in rural areas. EX: L.G electronics came out with a unique product for rural market. It launched sampoorna Indias first T.V with a Devanagari script on screen display. Voltas has introduced a refrigerator for rural areas direct cold technology keeps the refrigerator cold for several hours in case of long power cut. Nokias basic model is dust resistant and has a mini torch light for using in rural areas. Small unit packing:- It has been used for money consumer products . Small units packing provide an opportunity for the consumers to try the product and help the company to reach consumers like daily wage earners. EX: Ponds has gain market share over the past few years, focusing on rural market ant it has introduced 20grams talcum powder. Cavin Klare studied rural buyer behavior and introduced chik shampoo in small sachet of 4ml at a low price of 50ps.

 Rasnna is now available in sachet pack priced at 1rupee each and one sachet will make 2 glasses of soft drink Godrej Sara lee has single coiled sachet of goodnight coil for rural products Utility products:- The rural people are concerned with the utility of the items rather than appearance or show EX: Philips has introduced free power radio RL117 priced at 995/- for the first time in India. The radio requires no external batterys or electricity for operation. HMT watches are popular for utility value. Q) What is meant by pricing and explain factors influencing pricing? Sol:- Economists defines price as the exchange value of a product or service always expressed in terms of money. In simple terms price is the amount charged for the product or service. To the buyer price is a package of expectations and satisfaction. To the seller price is a source of revenue and main determinant of profit. Factors influencing pricing decisions:1.Objectives:- many companies have established marketing goals or objectives such as growth in sales, profits, market share and pricing plays a major role in achieving the objectives. 2.cost of production:-The most decisive factor in pricing is the cost of production. In the past, fixing of price was a sample affair: just add up all the costs incurred and divide the final figure by the number of units produced. The main defect with this approach is that it disregards the external factors, particularly demand and the value placed on goods by the ultimate consumer. Today on account of the various lines of production as well as distributing, the overhead costs finding the cost of production are not simple. 3)Demand:- in the consumer oriented marketing , the consumers influence the price. Every product has some utility for the buyer. It gives the buyer service, satisfaction, pleasure; the consumer would continue to buy the product. Higher the demand for a product, lesser the need for giving additional discounts, credit, etc.. To the distributors and dealers. This leads to higher price realization. 4)Competition:- another factor that influence pricing is competition. No manufacture is free to fix his price without considering competition, unless he has a monopoly. To avoid competitive pricing, a firm may decide that its product may be sufficiently different from that of the others. This is achieved through methods of advertising, branding etc.. Sometimes a higher price may itself differentiate the product. This is known as prestige pricing. 5)Distribution channels:- Distribution channels also sometimes affect the price. There are many middlemen working in the channel of distribution between the manufacturer and the consumer. Each one of them has to be compensated for the services rendered. 6)Supply of the product:-if the supply is less than demand, then the price of the product will be more. 7)Availability of raw materials:- Availability of raw materials in domestic

markets generally enable the firm to bring down cost of production. The firm can fix a low selling price. 8)If the brand is very popular among the consumers, then the manufacturer can charge a higher price for the product. 9)If the purchasing power of the consumer is high, then the company can charge a higher price for the product. 10) Promotion cost would normally increase the selling price as the company would like to recover the cost from the consumers. Q) What is meant by pricing and explain kinds of pricing? Sol:- Economists defines price as the exchange value of a product or service always expressed in terms of money. In simple terms price is the amount charged for the product or service. To the buyer price is a package of expectations and satisfaction. To the seller price is a source of revenue and main determinant of profit. Kinds of pricing:firm may choose various kinds of pricing for their products:1) odd pricing:- odd price may be a price ending in odd number or a price just under a round number. Such a pricing is adopted generally by the seller of specialty or convenience goods. E.g.. Bata shoes are priced at399.95. Odd price may bring more sales. Under odd pricing, buyers may feel that it is a mark down price. 2) Psychological pricing:- it is stated that there are certain critical points at prices such as 1,2,4,5,10 are psychologically appearing to consumers. E.g.. Products such as shampoo, chocolates and biscuits are sold at certain price to attract customers. 3) Prestige pricing:- prestige pricing is one that is fixed at a higher price, when the producers near perfect substitute. Prestige pricing is adopted because many customers feel that high price means high quality. Moreover the customer heels a high status at a high price. 4) Consumers expectations:- such prices are fixed by consumers. Consumers are familiar with the rates and market condition and expect a particular price to be charged for certain products. 5) Geographical pricing:- the distance between the seller and the buyer is considered on Geographical pricing. When there is lot of distance between production center and consumption centre, the producer or marketer can adopt different prices in each area without creating any ill/will among customers. There are two ways of charging transit cost. a) F.O.B pricing( free on board):- F.O.B may be of two types i) F.O.B origin and F.O.B destination:- in the first case, the buyers will have to incur the cost of transit a part from the price quoted and in the latter the price quoted is inclusive of transit charges. 6)Zone pricing:- price is equal in the same zone. Market for a product is divided into various zones. South zone, north zone etc.. In other words price are uniform with in a zone. 7) price lining:- price lining is formed more commonly among retailers than among wholesaler or producers. This system consists of selecting a limited number of prices at which the store will sell it goods. E.g. A buyer of shirt can go into a shop where shirts are retailed between 250/- t 500/-, it also helps the shopkeeper to

plan his purchases.. dual pricing:- when a manufacturer sells the same product at two different prices, it is dual pricing. Under the dual pricing a producer is required compulsory to sell a part of production to the govt or its authorized agency at substantially low price. The rest of the product may be sold in the open market at a price fixed by the producers. Eg.: Sugar 9)Negotiated pricing:- it is also known as variable pricing. This method is invaluably adopted by industrial suppliers. In certain cases, the product may be prepared on the basis of specification or designed by the buyer. In such cases the pricing has to be negotiated and then fixed.