Академический Документы
Профессиональный Документы
Культура Документы
Introduction
Consumer is the basic foundation of every business. What consumer sees,
thinks, prefers and buys is of great importance to marketers to fine tune their
marketing offers and achieve high level of consumer acceptance and
satisfaction. Rural market is a new interest among marketers to explore and
understand it.
Marketing
Offer
Product, Place
Consequenc
Price, Stimuli Organism Behaviour
e
Promotion
Buyer Decision Satisfaction
Internal
Environment Characteristi Making Cognitive
External
cs Action Dissonance
Socio-cultural
Technological
Economic
Political
Post purchase feelings: A buyer feels satisfied when the perceived product
performance is close to his/her expectations. If it exceeds expectation, the
customer is delighted else disappointed. If he is disappointed he develops
cognitive dissonance.
Reactions: Two options – Word of mouth advertising – good and bad.
Disposal: 1. Without using it fully, they dispose it off because they didn’t
like it. Else give it to someone who likes it.
2. Using it fully, they dispose the container or refill it with other product.
3. when replacement decision is taken.
Habitual buying behaviour: Products like salt, wheat, cigarettes, paan masala
are low involvement items and low cost and are frequently purchased. Brand
is not bothered about. Customers don’t postpone the purchase. Marketers
need to make consumers brand conscious. Differentiated marketing helps.
Rational and Emotional attacks –
Rational – make rational appeal and raise consciousness levels.
Ex: Horlicks with calcium, Pepsodent 2-in-1 action, Medimix ayurvedic
beauty soap with all ingredients.
Emotional – Associate with individual emotions like love, fear, jealousy and
wisdom.
Ex: Saffola – husband’s health, Wills – Made for each other.
Brand Loyalty
Brand cynics are growing in urban areas while brands are being looked upon
as reliable and trusted in rural markets.
‘Its tough to enter the market, but its definitely tougher to win over rural
customer for a lifetime.
Innovation Adoption
When a New product comes into market, there are different degrees of
readiness to adopt that particular product.
In rural areas the youth are exposed to urban life, the students, the white
collar employees and few of efficient persons in different occupations form
the innovative groups (influence personally on others).
It depends on adaptability of the product also.
Characteristics Description
Relative advantage The degree to which the new product
is superior to the existing one.
Compatibility The degree to which the new product
matches with values and
expectations.
Simplicity The degree to which the new product
is relatively easy to use.
Communicability The degree to which the benefits can
be made known to consumers.
Divisibility The degree to which it can be tried
on a limited basis.
Affordability The degree of economy in initial
outlay and maintenance costs.
Social approval The degree of economy will gain
social or community acceptance.
Marketing Information System
Concepts
Marketing environment is changing with globalization and emerging rural
markets. Information has become the key source. The main challenge is
designing and managing appropriate information system.
Subsystems of MKIS –
Subsystem Information
Internal Reporting System Internal reports like orders, sales etc.
It is data on events occurred and
results obtained.
Marketing Intelligence System Information about relevant
events/developments external to the
firm. Sources are newspapers,
magazines, journals etc.
Marketing Research System Systematic investigation of
information about a phenomenon
specific to marketing situation.
Desk/field research.
Decision Support System A coordinated set of models and
procedures with supporting computer
software and hardware.
Significance
Opined by Bloom, Adler and Milne (1994)
Table as above
Big firms V Small firms – Small firms are good in this business as big firms
are not interested.
Size of rural market research is small.
Big agencies feel more comfortable dealing with men in suit
who speak management jargons.
Small marketers more interested in qualitative data than
numbers.
But in recent times even big firms are getting interested in rural research.
Degrees of Segmentation
Bases of segmentation
There is no just one way to segment the market.
(i) Geographic Segmentation – Variables can be zones/regions, states,
districts, cities/towns/villages which can be by size, density,
climate and culture.
(ii) Demographic Segmentation – Here the division is by age, life
cycle, gender, family size, income, occupation, education, religion
and nationality.
Ex: Age – Infants, children, Teens, Young Adults, Elders and seniors.
(iii) Psychological Segmentation – True dynamics of purchase can be
assessed and marketing offer can be designed only on basis of
psychographics of people.
a. Social class
Upper-Upper Social elite, wealth inherited
Lower-Upper Social elite, wealth earned
Upper-Middle Career oriented
Lower-Middle Average pay
Upper-Lower Above Poverty Line
Lower-Lower Below Poverty Line
b. Life style
Trend setters
Traditionalists
Chameleons
(Women especially)
Home makers
Career Women
Free Spirit
c. Personality
Psychological characteristics
Physical characteristics
Targeting
After segmentation, we have targeting
Targeting involves evaluating the various segments and selecting how many
and which ones to target. It has 3 aspects –
1. Evaluation of Segments
a. Profitability: Sales volume, distribution costs, promotion costs,
sales revenue, profit margins
b. Attractiveness
c. Growth rate
d. Company objectives
e. Limitations
2. Selection of Segments
Segmentation is ranked on scores for selections. High score then it is
accepted.
3. Coverage of Segments
Zero Mass Undifferentiated
Substantial Segments Differentiated
Selective Niche Concentrated
Positioning
It has 3 tasks
1. Identifying differences of the offers vis a vis compare offers
Product
Services
People
Image
2. Selecting differences that have great competitive advantage
Attractive
Distinctive
Preemptive
Affordable
Communicable
3. Communicating such advantage effectively to target audiences
Product Strategy
Characteristics
Tangibility
Separability
Variability
Perish-ability
Concept
Product strategy refers to the long range competitive plan involving
decisions on products, product line and product mix to make proper
utilization of resources and achieve marketing goals.
Significance
1. Achieves product market fit
2. Encourages innovativeness
3. Provides competitive edge
4. Makes better use of resources
Against:
a. Investment returns doubtful
b. Image and personality an emotional nonsense.
c. Brand equity. Sensible but not new (goodwill)
Individual names
Merits and demerits
b. Challenger
Cheaper goods strategy
Prestige goods strategy
Economy goods strategy
Reacting or proacting in above strategies of leader on high or moderate
level.
c. Follower
Innovative imitation strategy
Other strategies of leader and challenger maintaining low profile.
d. Nicher
High/Low quality strategy
Narrow product line
Superior Service
Indifferent to other companies as none is a competitor.
For Marketer
a. Identity strategies
Commodity strategy
Branding strategy
c. Innovation strategy
Rural-Urban Common
Specially for rural
d. Quality Strategy
Quality improvement strategy
Spurious goods strategy
e. Packaging strategy
f. Brand strategies
Brand extension
Multi-brand
Co-branding
Brand image/equity management