MKT514

Rural Marketing
Dr. Rajesh Verma

#Session 4
Learning Outcomes
• Analyze what is rural marketing and how it is defined in the
empowerment and developmental context.
• Understand market separations concept and analyze company rural
strategies on the basis of Market Separations Theory.
Recapitulate
What does 4As Stand for:
A. Assessment, Affordability, Availability, Awareness

B. Acceptability, Affordability, Availability, Awareness

C. Accessibility, Affordability, Accountability, Awareness

D. Acceptability, Affordability, Availability, Announcement

Recapitulate
Identify the right match between 4As and 4Ps:
A. Affordability - Price; Availability- Place; Acceptability - Product, Awareness – Promotion

B. Affordability - Product; Availability- Price; Acceptability - Place, Awareness – Promotion

C. Affordability - Price; Availability- Product; Acceptability - Place, Awareness – Promotion

Rural Potential - FMCG
• FMCG is the 4th largest sector in the Indian economy
where the rural segment contributes about 45% to
the overall revenue generated by the sector.
• FMCG products are reported to account for 50% of
the total rural spending which is proof of the rapid
growth in the semi-urban and rural consumers in the
industry.
• The rural FMCG market expected to grow from US$
23.6 billion in FY18 to US$ 220 billion by 2025
• HUL’s rural revenue accounts for about 45 per cent of
its overall sales; Dabur generates over 40% to 45% of
the domestic revenue from sales in the rural market.
5Ds
All products or services must have an immediate value for BoP consumers.

• Design: Products developed to provide value to rural consumers-MitiCool

• Distribution: ensure easy availability

• Demand: has to be created and then matched by supply

• Development: improve the purchasing power of consumers

• Dignity: not talking down to consumers

Market Separations Theory
Bartels’ theory of market separations (Bartels, 1968) describes four kinds of
separations between producers and consumers:
• Spatial separation: Geographical distances between producers and consumers.
• Temporal separation: Time difference between production and consumption.
• Informational separation : Informational asymmetry between producers and
consumers relating to products, demand and other market conditions etc.
• Financial separation: Lack of consumers’ financial ability to purchase, when
they have a willingness to purchase and fulfill their consumption needs.
What is This?
Chanderi Saree
• Chanderi Weavers- Rural Town Chanderi, Ashok Nagar district, MP
• Weaving is the source of livelihood for more than 60% of its population, while the rest are
engaged in agriculture, biri making, stone quarring and tertiary occupations.
• 3,500 weaver families and an equal number of handlooms in Chanderi, which has a population
of approximately 30,000 people
• Spatial separation - Direct, Agent, Home, Exhibition, Bridging Enterprise (Fab India), Bunkar
Vikas Sanstha
• Temporal separation - Demand calculation, Seasonality
• Informational separation - Demand estimation, Taking orders, Design, Chanderi Weavers ICT
Resource Centre (CWICTRC)
• Financial separation - Lack of consumers’ purchasing power or producers’ lack of access to
capital, or both. Loan burden, Raw material by middleman.
Rural Marketing Process

Rural Marketing

Producers Consumer
Market Separations

Spatial Temporal Informational Financial

Market Separations
Market Separations
Rural Marketing Process
Product
Redesign:
Customer value
proposition

WOM: Awareness:
Community Trials, demos, BTL
leader and campaigns,
aspirational Opinion
use leaders

Service and
Purchase:
after sales
Supply chain and
experience: Payment chain
Infra for re-invention
providing service
Quiz

A. Product Redesign
B. Awareness
C. Purchase
D. Service & After Sale
E. WOM
Quiz

A. Product Redesign
B. Awareness
C. Purchase
D. Service & After Sale
E. WOM
Quiz

A. Product Redesign
B. Awareness
C. Purchase
D. After Sales Experience
E. WOM
Quiz

A. Product Redesign
B. Awareness
C. Purchase
D. After Sales Experience
E. WOM
Thank You

Any Questions?
LPU Live Q2E35 - MKT514