Rural Marketing Mix: S.Y.Bms
Rural Marketing Mix: S.Y.Bms
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Rural Marketing Mix
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Co-operatives and rural markets
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S.Y.BMS
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Group Number: 01
Group Members:
Tejas Chavan (04).
Sanket Dangi (05).
Manali Malondkar (20).
Sameer Palekar (26).
Sonali Pandrekar (27).
Manali Savardekar (42).
Yash Thakkar (46).
Marketing mix is one of the most fundamental concept in marketing management. For
attracting consumers and for sales promotion, every manufacturer has to concentrate on
four Basic elements or components. These are: Product, Pricing, Distributive Channel
(place) and Sales Promotion techniques. A fair combination of these marketing elements is
called marketing mix. It is the blending of Four Ps which forms the core of marketing
system.
The four components of marketing mix are also called marketing mix variables or
controllable variables as they emanate from within the enterprise and the marketing
manager can use them freely as per his desire or need of the situation.
According to William Stanton, “Marketing mix is the term used to describe the
combination of the four inputs which constitute the core of the company’s marketing
system: the Product, the Price structure, the Promotional activities, and the Distribution
System.”
According to Philip Kotler, “Marketing mix is the mixture of controllable marketing
variables that the firm uses to pursue the sought level of sales in the target market.”
Features Of marketing Mix:
(1) Marketing mix is the combination of four Basic marketing variables viz.,
product, price, promotion, and place.
(2) Marketing mix aims at achieving marketing targets in terms of sales, profit and
consumer satisfaction. Marketing mix is the marketing manager’s instrument for
attainment of marketing objectives.
(5) The main focus of marketing mix is the customer. His satisfaction and support
are important.
(6) Marketing mix variables are interrelated. Decision in one area affects the action
in the other areas. An integrated approach is needed while making changes in the
marketing mix variables.
There are four basic elements of marketing mix these are: Product, Place,
Promotion, and Price.
(1) Product:
Product is any article which the manufacturer desires to sell in the open
market. A product has capacity to satisfy human want. This creates demand
and facilities marketing. The product mix includes the following variables:
(b) Style, shape, design, colour, quality and other physical features of a
product.
Physical distribution is the delivery of goods at the right time and at the right place to
the consumers. Place mix includes the following variables:
(a) Types of intermediaries available for distribution,
(b) Marketing channels available for distribution, and
(c) Transportation, warehousing and inventory control fir making the product available to
consumers easily and economically.
For large-scale distribution, the services of wholesales and retailers are required. A
marketing manager has to select a channel which is convenient, economical and suitable for
the distribution of specific product. For example, large numbers of outlets are required for
distribution of product of mass consumption such as soaps and cold drinks. On the other
hand, for marketing of speciality products like refrigerators, selective distribution channel
and authorized dealers is always convenient.
(3) Promotional activities
Promotional activities are for encouraging retailers and dealers to keep the stock of
company’s product and also for encouraging consumers to purchase company’s products due
to various plus points. Promotion mix includes the following variables:
(a) Advertising and publicity of the product,
(b) Personal selling (salesmanship),
(c) Sales promotion measures introduced at different levels,
(d) Public relation techniques used for cordial relations with dealers and consumers, and
(e) Display of goods for publicity and sales promotion.
Promotional activities are necessary for marketing and also for facing market competition
effectively. Such activities are varied in nature and are useful for establishing reasonably
good rapport with the consumers.
Advertising gives information and guidance to consumers. Salesmanship is a direct
persuasive communication with customers. It creates confidence in the minds of
customers through face-to-face meeting. Along with advertising and personal selling, a
manufacturer has to use other sales promotion techniques at consumer level. Such
measures include displays, discount coupons, small gifts and consumer contests.
(4) Price:
Price is one more critical component of marketing mix. It is a valuation of the product
mentioned by the seller of the product. It is the amount at which the seller is willing to sell
and the buyer is willing to buy. Price mix includes the following variables:
(a) Pricing policies
(b) Discounts and other concessions offered for capturing market.
(c) Terms of credit sales
(d) Terms of delivery, and
(e) Pricing strategy.
(b) Features:
Human beings are never happy with what they have. They continuously
seek improvement for more comfort and convenience. Features are extras to a product
which are of value to the buyers. They are of two types:
(i) Rational, problem solving and
(ii) Emotional, fancy.
The consumer is willing to pay for the solutions to the problems he has in using the
product. It is the willingness to buy solutions that leads the marketers to add features to the
‘shipped-down’ model. The features which capture the attention of the buyers are less
functional and more fanciful.
(d) Packaging:
Packaging is providing a container or wrapper for a product for protection
and handling. It is done at three levels.
Primary package: To hold the product e.g. bottles.
Secondary package: To hold the primary package e.g. carboard box.
Shipping package: To carry the secondary package from one place to
another e.g. corrugated boxes.
All products need shipping package since they are to be transported to different places.
HUL has made ‘bubble pack’ shampoos which is a combination of mini packs for rural
markets. It is neither a sachet nor a bottle and works on the principle of capillary action.
This type of package was developed keeping in mind convenience of storage after use.
(e) Branding:
Brand is the name, term, sign, symbol, design or a combination of them,
which helps to identify seller’s products and differentiate them from those of competitors.
The primary purpose of branding is creating an identity of the product. The brand name
for the rural market should be such that it is instantly understood and recognized by the
rural consumer. The rural consumers are unfamiliar with English and absurd brand
names. They hesitate to try out such brands.
The rural brands are recognized mostly through symbols, logos and colours.
E.g. Battery with cat as a symbol – Eveready. The rural consumer remembers it as “Billi
walli cell”. The red soap- Lifeboy soap. The rural consumer remembers it as ‘Lal
Saboon’. The process of rural branding involves:
i. Creating an identity: E.g. ‘Tata Shakti’ a sign of power, which leaves lasting
identity in consumers’ mind. (Product- galvanized corrugated sheets of Tata Steel).
ii. Enhancing recognition: E.g. Eveready batteries- A symbol of cat- “Billi walli cell”.
iii. Building a brand image: E.g. Bhumiputra- Mahindra & Mahindra Tractors.
PRICING STRATEGY:
One of the important constituent of rural marketing mix is pricing. In the rural market
value for money brands give the faster sales for fast moving consumer goods. Fast moving
consumer goods majors are trying to increase the sales through low unit perks & VFM
product in segments like bathing soaps, washing soaps & detergents, toothpaste etc the
consumers are increasingly opting for more VFM launcher. VFM brands like NIRMA’s
soaps, NIRMA , Britannia’s Tiger, Colgate Cibaca Top are doing better than other premium
brands from their own companies.
According to ORF, Breeze recorded growth of 12% while Lux a premium brand
recorded a negative growth of 12.3%. Britannias’ Tiger grew by 12.6%.
In the slow down, mass brands registered better growth than premium brands. In the
home appliances category Videocon was one of the 1st company to enter rural markets.
Philips who were the market leaders for radio sets cost RS.250 were attacked by
Videocon by launching a radio sets for RS.180. They grabbed a major chunk of the market.
At present they are marketing walky range of personal cassette players at local prices to rural
customers. Only charging lower prices is not enough. They have to offer VFM.
Pricing strategy requires holistic approach. Pricing is a part of marketing strategy. It
should be designed in such way that it contributes the objectives of marketers & needs &
wants of customer groups.
Price conscious consumers belong to the destitute (upto Rs. 16,000 annual income)
aspirants (Rs. 16,000-22,000) & climber (Rs. 22,000- 45,000) groups. They can afford less.
The climbers watch for promotional offers to whet their appetite for quality products.
Since branded products are costlier than unbranded & ungraded local ones, also not
available in small quantities, the rural consumers purchase local brands or fake brands which
are relatively cheap.
Clinic-Plus launched the sachet of 8 ml for Rs. 2.50 for the rural household. Recently,
it launched the 28 ml shampoo pack which is priced at Rs. 8. Such innovations are expected
as rural households change the preferences to buy a family for a period rather than an
individual & a day’s consumption.
A company has to offer smaller size units at lower price. FMCG products are
marketed through this approach. For an example Lux soap is now available on 5 or 10 gram
packs in the rural markets.
The pricing strategies are very much linked to product strategies. Product packaging &
presentation also makes the price low to suit local purchasing power. Some of these
strategies are:
(1) Low Cost/Cheap Products: The price can be kept low unit packings like paisa
packs of shampoo sachets, Vicks 5 grams tin etc. This is very common strategy
which is being widely adopted by many marketers.
(2) Refills/Reusable Packaging: The refill packs benefits the consumers in terms of
price. Such measures can have a significant impact in the rural markets too, since the
price can be reduced to the advantage of rural consumers. In addition the packaging
material used should be reusable in rural areas. Most of the fertiliser companies pack
fertilisers in LDPE or HDPE sacks which are reusable. The sack can be washed &
reused. Many farmers in rural areas demand for fertilizers packed in LDPE or HDPE
sacks. They feel that they got a sack cost free by purchasing fertilizers.
An effective communication system helps in the transmission of messages with the help
of media from the communicator to the receiver, so that it is interpreted correctly. Thus,
selection of an appropriate media-mix becomes a prerequisite for an effective
communication system. When the target audience comprises rural people, the task of
designing the message as well as selecting the media mixed poses challenges to the
communicator. If we look at the government’s Rural Development Programmes we find low
awareness of these programmes among the rural people. One of the main reasons for these is
the lack of effective communication. If this is the fate of the government aided schemes
having requisites facilities and funds at their disposal, one can imagine the challenges for
marketers who have to face limited funds, underdeveloped infrastructure, low literacy rate
etc.
As per the National Council for applied economic research study there are as many high-
income households in rural areas as there are in urban areas. There are almost twice as many
lower middle income household in rural areas as in urban areas. At the highest income level
2.3 million urban households as against 1.6 million household in rural areas. According to
the National Council for applied economic research projections, the no. of middle and high
income households in rural India is expected to grow from 80 million to 111 million by
2007. In urban India, the same is expected to grow from 46 million to 49 million. Therefore
the absolute size of rural India is expected to be double than that of urban India.
AWARENESS:
Mass media is able to reach only 57% of the rural population. For creating awareness
unconventional media including ambient media should be used. For generating awareness
status events like fairs – HAATS etc, are used on occasions for brand communication.
Cinema vans, shop fronts, walls and wells – media vehicles that have been utilised to
increase brand and pack visibility. Some instances of innovations in advertising like putting
stickers on hand pumps and walls of the wells, putting in places on trees surrounding the
pond have been used for promoting personal care brands like to RIN and WHEEL. The
strategy was to advertise not only at the point of purchase but also at the time of
consumption.
Through there is definitely a lot of money in rural India, there are hindrances at the same
time. The greatest obstacle is that the rural market is still evolving and there is no set format
the understand consumer behaviour. A lot of research is still to be conducted in order to
understand the rural consumers. Only FMCGS with deeper pockets, unwavering rural
commitment and staying power will be able to succeed in this rural race. Rural populations
disposable incomes are increasing, their attitudes are changing, and the desire for durable
and durable branded products are increasing. But, to tap this vast experiencing market,
companies needs to develop effective communication strategies taking all the challenges into
account.
c) Music records, Harikatha, etc.: Music cassettes and records is another effective
medium for rural communication . it is an effective and appealing medium. it is also an
inexpensive medium. One complete language group can be reached on a low budget
through specially developed records or cassettes. They can be played at cinema houses or
in other places where rural people gather.
d) Group meeting and House-to-House Campaigns: group meetings of customers
and prospects in important component of interpersonal media. Salesman or the promotion
staff of the firm can effectively carry the product messages to the target audience at these
meetings. On the spot demonstration of the products can be also carried out at these
meetings. House-to-House visits in rural areas. These teams usually carry with them
product promotion literature/handouts, product samples etc. These campaigns are different
from door-to door selling campaigns. Promotion squads do not sell the product.
e) Audio visual publicity vans (AV vans): The AV units is very useful for rural
communication . the van is comprehensive mobile promotion station at the exclusive
command of concerned firm. The van can be used for the sales campaigns. The firm can
exhibit films , audio-visual presentations such as slides shows , puppet shows, etc. from its
instant promotion station. A portable platform or shamiana can be carried in the van and
used as stage. Portable exhibition kits can be carried in the van and exhibitions put up
instantly.
AV vans are quite popular with rural market firms. Practically all the firms in agri-input
business have their own AV vans. While AV vans are very effective tools in rural
promotion, the cost is high as the target population is scattered. The cost of reaching a
individual customer prospect through the van works out very high. In early stages of
market development, in particular, the sales generated may not have any relationship to the
cost involved in extension use of AV vans. But in view of its effectiveness, big companies
with resources make a conscious decision to use vans as a long term market development
tool.
f) Syndicated AV vans: In recent years, rural publicity vans have become a purchasable
service. Firms which cannot afford to operate publicity vans of their own can utilize the
syndicated AV vans service offered by independent agencies.
g) Interpersonal media: They have a special merit in rural context as they facilitate tow
way interaction. They also bring market feedback to the firm. In many cases, rural people
prefer face to face communication as mass communication. Their confidence in the
product and the firm their goodwill towards the firm become stronger through
interpersonal approach. Advantages of interpersonal media are they are segment specific,
market specific and score high when it comes to involvement and participation of the
audience. In effort to reach out and go beyond the mass media, a firm establish contact
with audience through fairs and festivals, folk performance and other special events.
h) Puppetry:Puppetry is the indigenous theatre of India. For long , it has been the most
popular form and well appreciated form of entertainment available to the village people. It
is an inexpensive activity. The performer uses the puppet as medium to express and
communicate ideas, values and social messages.
Thus in rural India puppetry is a source of livelihood, avenue for entertainment and creative
expression which are ritually sacred and meaningful as a means of social communication and
vehicle of social transformation.
Song and drama division of the government of India makes wide use of puppets in its
campaign to promote various government projects. Several other organizations, government,
semi-government and private, have also used puppets in support of individuals schemes.
Life Insurance corporation India used puppets to educate rural masses about life insurance,
enlisting the help of the literacy house in Lucknow. These plays are shown to the audience in
villages in UP , MP, Bihar. The number of inquires at local life Insurance Corporation during
the period immediately following the performance was compared with normal frequency and
found to be considerably higher.
i) Folk theatre:
Folk theatre are mainly short and rhythmic in form. The simple tunes used by them help in
informing and educating the people in informal and interesting manner. It has been used as
an effective medium for social protest against injustice, exploitation and oppressions.
Folk songs have been effectively used during revolts of TELANGANA and NAXALBARI
and now a days it is one of the best exploiters for political parties. Government has used this
media for popularizing improved variety of seeds, agriculture implements, fertilizers etc.
j) Demonstrations:
direct contact is a face-to-face relation with people individually and with group such
as panchayats and other villages interest in their own problem and motivating them towards
self-development. Demonstration may be:
Methods of demonstration.
Result demonstration.
Simple demonstration.
Composite demonstration.
In order to make any demonstration effective there are five steps given below:
Information about the people.
Objective to be accomplished.
Demonstration plan and execution of the plan.
Evaluation of the demonstration.
Reconsideration after evaluation.
In case of result demonstration audiovisual media can add some value.
Use of publicity vans/animals.
Publicity vans fitted with audio video gadgets should be used to reach the rural areas,
especially people living in remote tribal and hilly areas. TV, the VCRS and projectors
fitted in the vans will help in spreading advertisement message by putting banners on
them and parading them in villages.