rural markting

7/30/2019 Rural Markting

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RURALMARKETING

Vinod Puri 9820694960


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Rural India

740 million people

24 languages 1642 Dialects

6,38,691 villages and 5,164 towns

70% population still rural & agrarian

41% are illiterate

56% HH - no access to electricity

70% HH have no bank account

96% have no telephones

7% have two wheelers & 1.3% have 4wheelers


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Rural Market Structure

Demographic Environment

Physical Environment

Economic EnvironmentSocial, Cultural & Political Environment


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Demographic Environment

POPULATION 1971 1981 1991 2001

Total Population

(milliion)

548 683 848 1027

Rural Population

(milliion)

439 524 629 742

Rural proportion tototal

80% 77% 74% 72%

Source: Census 2001

1991 2001

Rural Urban Total Rural Urban Total

Households

(million)112 40 152 138 54 192

Distribution of

Population by Age

groups

Age

Group

Rural Urban

0 4 13 11

5 14 26 23

1519 9 10

2034 23 28

3554 19 20

55+ 10 8


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Distribution of Villages

Population No of Villages % of total villages

Less than 200 92,541 15.6

200-500 1,27,054 21.4

501-1000 1,44,817 24.41001-2000 1,29,662 21.9

2001-5000 80,313 13.5

5001-1000 18,758 3.2

Total no of villages 5,93,154 100

Physical Environment

Distribution of Towns & Villages

1991 2001

Towns 3697 5161

Villages 580779 593154

Hardlyany

shops


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Economic Environment

Distribution of Rural Household by Income

Income Class Annual Income 1995-96 2006-07

Very Rich Rs. 215000 0.3% 0.9%

Upper Middle Rs. 45000

215000 13.5% 25%

Middle Rs. 22001-45000 31.6% 49%

Low Middle Rs.16001-22000 31.2% 14%

Low Rs.16000 & below 23.4% 11.1%

Total 100% 100%


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Rural Economy

1995-96 2004-05 Agriculture 43% 32%

Industry 19% 22%

Service 38% 47%

Consumption Pattern (%) (2001-02)

Rural Urban

Food 63.7% 51.5%

Consumer Goods 13.1% 19.6%

Fuel,clothing & footwear 14.8% 13.9% Medical 5.5% 5.5%

Education 2.5% 5.1%

Rent & Taxes 0.4% 4.5%


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Importance of Rural Markets

12.2% of world Population

120 million households

70 % of Indian households

Use 52 % of durables in the

country


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Environment

The difference between rural & urban

markets based on various socio -

economic factors,

most dominant being the source ofincome, the

frequency of receipts of income, the

seasonal nature of income &consumption


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Rural markets are

small, continuous settlement units of

villagewith lower infrastructure facilities;

low density of population,

different lifestyle.


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Factors critical for Segmentation

Differences and variations in climate

Development levels

electricity, road connectivity

Differences in Food habits

North v/s south

Cultural differencesTraditional south v/s outgoing north


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Factors critical for Segmentation

Intra region differencescaste based hamlets

Variation in population size and density

Variation on literacy levelsBihar v/s Kerala

Media exposure levels

Differences in income levels and patterns of

income flowFarmers v/s daily wage earners


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Occupation & Consumption Patterns

(Bijapurkar99)

Category % House

holds

% TV

ownership

% two

wheeler

ownership

%

Refrigerato

rs

Owner

Farmer

34 33 33 31

Trader 8 14 16 20

Service 13 13 31 39

Agricultural

worker

20 6 3 2

Non agri

workman

17 9 4 5

Artisan 6 6 4 2

Others 2 2 1 1


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Comparison of the Lifestyles

Dimensions Urban Rural

Demographics Private schooleducated, salaryearner, nuclear family,

dense population

Govt. school, selfemployed, large family,

scattered population,

spacious abode

Activities Office jobs,communication driven,

shopping, partying

Agriculture, physical

sports, gossip, cinema,

religious functions

Interests Outside eating, fashion,self, holidays, diamond

jewellery

Milk, bright coloured

clothes, gold jewellery,

melas, visiting towns


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Rural Consumer Classification

Affluent Owning 4 wheelers 1995-61.6 %

2006-7

5.6%

Well OffA.C. & or Motor cycle/Fridge/

Colour TV 2.7% 5.8 %

Climbers Moped, VCR, Mixer, sewing m/c,B/

W TV, Audio equipment

8.3% 22.4

%

Aspirant Bicycles, Fans, Irons 26 % 44.8%

Destitutes Mechanical wrist watches,pressure cooker, audio recorder,

radio

61.4

%

20.2

%


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Major weakness & challenges

Traditional, slow to react to new ideas.

Income mostly invested in gold ornaments

& spent in

weddings & festivals.

Low rural literacy

Slow response to new thinking & improvedproducts.


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Need to understand the psyche of rural

consumers.

Must associate with their activities. Utilizing the various rural folk media to

so that the brand can be associated

with myriad rituals,celebrations, festivals, melas

and other activities


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The 4A Approach

The rural market may be alluring but it is notwithout its problems .

Low per capita income that is large number of

daily wage earners,Acute dependence on the vagaries of the

monsoon,

Seasonal consumption,

Poor roads, Power problems, & inaccessibility to

conventional advertising media.


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Availability Place

Affordability Price

Acceptability Product

Awareness Promotion


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Availability

The first challenge is to ensure anavailability of the products /services.

Given the poor state of roads

even greater challenge to regularlyreach the far flung villages.

Must reach

at least villages with a population more than5000.


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Affordability

SECOND CHALLENGE IS TO ENSURE

AFFORDABILITY OF THE PRODUCTS

OR SERVICE.

With low disposable income, products

need to be affordable to the rural

consumer.


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Acceptability

Third challenge is to gain acceptability for

the product/service.

Need to offer the products /services that

suits the rural market

Eg. LG Electronics &

Nokia


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Awareness

With large part of rural India inaccessible

to conventional media only 41% rural

households have access to TV

BUILDING AWARENESS IS ANOTHERPROBLEM.


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Rural Marketing

It is defined as process of delivering a

better standard of living & quality of life

to the rural areas

Rural marketing broadly involve

Reaching rural customers

Estimating the needs/ wants

Supplying goods&

services to meet those requirements


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Rural Market

Any market that exists in a sparselypopulated area with less than 10,000people & no significant infrastructure are

known as rural market.There is no specific definition of rural

area. Census of India 2001 has definedurban & rural as that which is not urban.


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An urban unit is

All place with Municipal Corporation,Municipality Cantonment Board as Notified Area,Committee etc.

All other place satisfying the following areas:A minimum population of 5000

At least 75% of the male working populationshould be engaged in non-agricultural pursuits &

Density of population of at least 400 per sq kilometer(1000 per sq mile)


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Problems in the Rural Marketing

Widely scattered village

Low -level of literacy.

Heterogeneity

Language problems

Unstable & seasonal demands

Inadequate Bank & credit facilities

Lack of infrastructure


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Widely Scattered Village

In spite of accommodating 72.2% of

countrys population it is very much very

scattered geographically, which is spread

in more than six lakh villages.

Even within a particular state one can find

villages with a population as high as

10,000 & as low as 5 personseg.Haryana


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Low Level of Literacy

Rural literacy rate has shown growth overthe years but still 50% of population isliterate.

59.37%--Male16.94%--Female

Low rate of literacy indicate inaccessibility

of various media of communications aswell as requirement of more visualcomponent in brand name & packaging..


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Heterogeneity

There is no uniformity in rural across the

country. Each village is a complete social unit by

itself with own religion, cultural & social

pressures along with huge economic disparities.

Due to this, a marketer has to make

modification in brand name, packaging, colour

etc for the product for different rural areas

increasing marketing expenses for the marketer.


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Language Diversity

The number of recognized languages is 16 &

number of dialects is estimated to be around

8500.On and average every district has more or

less its own dialect.

This pose a major problem on communication

front, to ensure effective communication a

marketer should prepare communication

message in maximum possible dialects,


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Unstable & Seasonal Demand

Demand depends upon crop since it is a mainoccupation & agricultural yield depends uponweather, hence it is seasonal.

Usually demand occurs at the end of Kharifseason (Oct-Nov), & at the end of the end ofRabbi Season (Mar-Apr).

Agriculture depends on monsoon, which isunpredictable & adds to risk.


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Inadequate Bank & Credit Facility

The rural retailer has a large proportion of thesales on credit. They face problems infinancing their sales on credit.

Because of problems in financingare unable to carry enough stocks

results in a low turnover.

Lack of credit facility pose problem on bothfront, rural retailer as well as consumers


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Lack of Infrastructure

Infrastructure comprise of roads,electrification, housing, communication &storage facility.

No public warehousing exists in ruralIndia.

Bad networks of all season roads,

All these factors give an indication of extraeffort required on the part of a marketer interms of cost & time.


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Village shop-outlet in village storesvery essential manufactured goods,

required on daily basis like beedis, cigarettes,tea dust, oil etc.

may be offered on credit.

Weekly Haats assemble on a fixed dayat a particular spot in a specific village.

The commodities include agricultural

products, toiletries, & other essentials

agricultural tools .even livestock.


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Primary wholesaler.

Assembly markets/ Mandis

market place to sell his agricultural

products soon after the harvest

Mandis are well-established markets forselling & buying agricultural products

with number of market functionaries.


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Rural consumer might purchase

consumable items at village shop or

haats

But will purchase consumer durable

items from district headquarters to the

town where the primary/secondarymarkets are located.


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Emerging Distribution Models

Corporate S.H.G. Linkage

Project Shakti

Hub & Spoke

Coke & Pepsi as pioneers Syndicated Distribution

ITCs e-choupal

Barefoot agentsAgri input dealers

Petrol Pumps, Post Offices


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Difference between

Rural & Urban Area:

Agriculture is the main

occupation.

Small Community

Low density of

population.

People are inclinedtowards natural

environment.

People are engaged in

Mfr, trade ,commerce,

administrative& other non

agricultural work

Large Community

High density of

population.

People are more inclined

towards fabricatedenvironment.


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Reasons for this behaviour

Wide variety, quality & many options

pertaining to price.

Perceptions relating to Service

guarantee.

After selling his agricultural produce

money available to purchase the goods.


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Characteristics of Rural

ConsumerPatterns Of Purchase & Consumption

Influence Of Perception & Attitude

Degree Of Brand loyalty


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Patterns of Purchase & Consumption

The buying decisions by the eldest member

of the family the social & religious customs,

prevalence of joint family system.

Bargaining & comparative pricing are the

techniques .

Brisk buying done after the harvesting period.

Main buying is done during the festivals. Many cases the buyer is different from user


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Influence of Perception &Attitude

In order to modify the behavior of rural

consumer, marketer needs to influence

perception & attitudes.

Marketer should be careful in designing

different marketing strategy because of the

difference in perception & attitudes along

with the environment influence.


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The interpretations of rural consumer

differ from those of urban consumer.

Rural consumer are equally quality

conscious but value for money is of

prime importance.

He looks for functionality of the product

rather than frills, appeals to them.


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Degree of Brand Loyalty

Incase of a rural consumer mass media may act

as a reinforcing agent but for conversions

personal influence is most effective.

Once formed, loyalty difficult to dislodgeRural consumer are influenced by information

received & opinion formed from various sources

in making their buying decisions. Source of

information is critical.


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Opinion Leader

. Opinion leaders are those individuals who

happen to be influential icons in approving or

disapproving new ideas &n their application in

the community. Their influence is broadly related to the social

position

Opinion leaders can be influenced favourably

attracted towards the products during theproduct demonstration at any social gathering.


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OPINION LEADER CAN BE

Sarpanch

Rural Student

Rural Teacher

Retailer


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Rural Student

Their word carries lot of weight in familys

buying decision. They are promotional

activities that are carried out in the

schools.

Rural Teacher

The teacher of [primary & secondaryrural schools play a very important role

in moulding buying decisions. They also

play pivotal role in villagers life.


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Nature of Competition-

Incase of rural market has a competition

with all the products that satisfy the same

customer needs.

Competition in rural market can be grouped

as-

Direct Competition

Indirect Competition


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Direct Competition

National Branded Products

Due to increased media exposure

Need to create the brand performancethrough integrated marketing

programmes & highlight the image of his

brand in comparison with other brands in

use.


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Regional Branded Product-

Regional brands are quite popular in

rural market. enjoy

advantage due to their strength ofdistribution. Closeness to retailers

& knowledge of consumer taste is due

to the proximity to the market


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Unbranded Urban Products

Unbranded Products of Village

origin-


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Indirect Competition

Substitutes This is a unique form of competition present in

rural market. The brands have to compete withsubstitute when they enter a market or launch aproduct.

Eg .Substitute for tooth paste/toothpowder isneemsticks, charcoal, and tobacco.

To compete against this form of competitionconsumer education is the most important task


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Positioning

After understanding the competition toits products the foremost decision isregarding the.

Products position is the complex set ofperception, impression & the feelingsthat the consumer has for the productcompared with the competing products.

This is necessary since all thecomponents of marketing mix areinvolved in the tactical details of

positioning strategy.


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Product Development

Focus on identifying the need.

Need to closely observe the habits of

the rural households.Possible Strategies:

Extension of urban product (Extension

Strategy)Adaptation of urban product to rural

conditions (Adaptation.)

Innovate the product (Innovation)


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Extension Strategy

It means introducing the same product,

which is present in urban market into rural

market without any change.

Many marketers do not use this strategy

since they know that rural consumer is

very different set of people.


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Adaptation Strategy

It involves altering the product to meet thelocal conditions or preference

Incase of rural India the product should beadapted to local superstitions & beliefstoo.

Eg.-Colour of Cement Dark shade ispreferred


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Innovation Strategy

It means creating something new .It is a costly

strategy but in the end the pay off is much more

than expected.

Eg. SpacioLower level version of Tata Sumobuilt on 407-truck engine.

Developing specific product for rural market

sometime leads to double benefit for the

marketer.

Eg. Shampoo Sachets.


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Branding

The rural consumer might not rememberthe brand name but definitely rememberthe brand mark ie. Colour , logo, mascot

etc.The rural consumer see brand as a

reliable friend.

He is willing to pay price for brands as forhim/her buying an established brand is thesurest way of reducing the risk

Building Brand Identity in Rural


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Building Brand Identity in Rural

Areas

In order to conduct the brand building

exercise one must consider following

factors;Name

Tagline

Logo

Symbol

Colour


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Name & Tagline

While serving the rural market should, we usesame brand name, which is used in urbanmarket, or we use different brand name.

It depends upon the conscious nature of firmalong with situation &understanding of ruralconsumer psyche.

The important aspect of brand name is that itshould strike the rural consumer

Desired qualities of Rural


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Desired qualities of Rural

Specific brand

It should suggest something about the

product &its benefit.

It should easy to remember, recognize, &

pronounce.

Keep it region specific, if possible keep

brand in prevalent local language.

It should reflect aspirations for

consumers..


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Semiotics

Semiotics is the study of signs & symbols &their interpretation.

Incase of rural market, the identification of

brand identification through visualpatterns.

Logo, symbol & color can be used tocreate strong brand recognition.

Semiotics work best incase of FMCGcategory.


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Packaging

Packaging is very important for rural market.,since consumers in rural area recognize brandsby its packaging comprising of brand mark.

This is because of low literacy rate.

Even when the consumers are not sure abouttheir choice attractive packaging makes lot of

differenceeg. sher chaap paints -Nerolac paints


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Packaging Strategy

In case of rural marketing following factors

should taken in to consideration,

Small Pack

Synchronization with the local culture

Strong Packing

Innovative PackingLabelling

Small Pack


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Small Pack

Due to unsteady source of income,

packing products in small packs can be

used effectively in capturing the market.

Reasons for considering small pack


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Reasons for considering small pack

are-

Affordability

Usage patterns

Trialability

Attractiveness

Storability

Unique needs


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Affordability

Large chunk of rural consumers are daily

wage earner, they have little money to

spend at one go, and due to this they

cannot plan their purchases.The presence of small packs can help

them to choose the product at price

affordable to them.


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Usage Pattern

Usually a family in large quantity

purchases detergents & toothpastes but

shampoos & toilet soaps are purchased in

small packs because of personalpreferences.


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Trialability:

In spite of huge promotional activities

undertaken by the companies, the rural

consumer prefers to go for small packs for

trial use.

Many brands have used its small packs to

penetrate the rural market.


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Attractiveness

Small packs are easy to display, thereby

increasing the appeal they carry. Colors

on small packs look more attractive as

compared to large packs


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Storability: It is one of the main reasons for the success

of small packs in rural market is that they canbe easily stored in rural houses & shops. In

case of shop display can be made more

attractive.

Unique needs:

The rural consumer has distinct application ofcertain products for which it requires mall

quantity of products


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Synchronization with the local culture

The packing of the product should beattractive & should resemble with localculture

. Product name should be written in thelocal language to create moreawareness.

Their proper attention should givetowards regional variation in terms ofcolors & symbols.

Dark colors indicate better quality.

S


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Strong Packaging:

It takes long time for goods to reach

consumers in rural markets.

Retaining the benefits & freshness

products is of prime importance.

Innovative Packing:


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Innovative packing can give a companyan advantage over their competitors.

.Related products together makes moresense for rural consumer.

Eg. Combo pack.

Labelling:The labels for the products in rural

markets should be affixed rather than

inserted in the pack. The direction to use should mention on

the label with help of visuals.


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Brand Loyalty

The most challenging & difficult job is toeducate rural consumers from commodity

to brand & satisfy his needs.

However, once he is satisfied he becomeshard-core brand loyal.

He might convert entire village to that

particular brand.


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Fake Brands/Spurious Products:

Rural markets suffer from the problems of lowpenetration & poor availabity of branded

products.

There is a huge demand for the brandedproducts & channels to make the products

available.

This leads to the growth ofSpurious

products brands.

D fi iti f i


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Definition of spurious

Spurious products are look-alike products withsimilarity in packaging & minor changes inname.

They are divided in to two categories-

Pass off or me too products: thatuse names which sound similar in spelling to thepopular brand

Counterfeits: fakes

which can bear theidentical name, packaging, graphic, colourscheme, & even the manufacturers address.

Th F k M k t


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The Fake Market

The entire range of products available inspurious market can be divided into three

distinct categories

Look alike

Spell-alike

Duplicates

Look alike


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Look alike: In this category, the color scheme on

the packaging materials closelyresembles that of a popular brand butthat pack carries a different name..

Spell alike:They are fakes of original brands

packaged in colors & design similar tothose of the originals but have namesthat are suitably & cleverly miss spelt.


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Duplicates:

Duplicates are the exact replicas of

original brands. The packaging is same as

those of the original brand.

Strategies to Curb down Spurious


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Strategies to Curb down Spurious

Products

Educate the rural consumers on brandquality as well as prime need for quality.

Improve the distribution system.. Make

product available at as many places aspossible including haats.

Create clear brand identification & strongpull from the rural consumers.

Promote rural retail schemes to ensuretrade support.


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Consumer Behavior

inRural India

Need to study


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Need to study

Consumer Behavior

Behaviour perplexing because of lackof groups that are homogenous i.e.-

age, occupation, education,

&income. Influence of caste & religion

undercurrent of power & politics

Factors affecting the


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Factors affecting the

Consumer Behavior

Incase of rural area the like tradition,social customs, caste determine

consumer.

Needs & wants are quite different for

rural & urban India.

Cultural Factors


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Cultural FactorsCulture-Rural India lives in the society, which

is bound by the culture. As the child grows up

in the rural environment, he acquires a set ofvalues, perceptions, preferences & behaviorthrough the family or other key institutioninvolved in each stages of his life.

Collective Social SanctionsOur society is bound by set of norms. These

norms are strongly followed in rural India.Violations of these norms can lead to

embargo.Behaviour in rural Indian society is

governed by these norms.

Traditions


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Traditions These are long standing beliefs, which are

believed to be true & often practiced withoutknowing the reasons. This could lead toacceptance or rejection of tradition & hencethey do not violate them.

CasteCaste influences the behaviour of

community. Difference between lower &upper caste still exists in rural India.

Caste system also influences the location ofhouse. Houses of upper caste are located atone side of the village.

S i l l


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Social class

Social class is defined based onoccupation & education.

In case of the rural India, it is difficult to

define the social class due to different &changing occupations undertaken in

different seasons, which create difference

in the estimation in their incomeaccurately...

Socio Economic Class


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Socio Economic Class

In urban India SEC (Socio EconomicClass) is defined by considering

occupation & education, but in case

of rural India House Types replaces

occupation.

SEC R1 Prefer to buy bulk quantity from


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SEC R1Prefer to buy bulk quantity from

nearby town. This class is variety &

quality conscious.R2 &R3---Buys from haats. Prefers

bargaining.

Changing Behavior-People returning back to rural area who

had shifted to urban area for jobs

Emergence of information technology.

Increased media reach.

Social Factors


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Social Factors

Social factors can also influence consumer.They supplement reference groups likefamily, friends, & opinion leader.

With emergence of professional social workerss in rural India such as,

Anganwadi WorkerAuxiliary Nurse Midwife (ANM)

Member of self help group

Member of Primary Agriculture CooperativeSociety (PACS)

Representatives of Nehru Yuva Kendra(NGO)

Role & Status


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Role & Status

People in urban area acquire role & statusbased on their social ranking & wealth.

Caste system plays an important role indefining status in rural India. Peoplelike-

Sarpaanch

Caste Leaders

Retired Government Employees

Priests

farmer is respected in village, as he is a

man of knowled e

Products & Status Symbol


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Products & Status Symbol

THE STATUS OF A CONSUMER PLAYSAN IMPORTANT ROLE IN THE CHOICE

OF THE PRODUCTS.

Rural consumer looks for ease of

operations rather than added feature in

choosing the products,.

Status symbol is closely linked with position in


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Status symbol is closely linked with position inthe society.

Eg.-Tractor is the status symbol in rural India.

Utility of products is taken into considerationwhile making the buying decisions.

Examples of Status Symbols in Rural

India- Tractor

Pucca House

Telephone Visit to pilgrimage

Sociability


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Sociability

More time spent on an interaction within acommunity due to the availability of spare

time.

Rural people spend more time with their

family as compared to urban people.

In rural area a man may visit /drops at the

house of another only to seek the advice or to

discuss urgent matter or to ask opinion on anissue

Technological Factors


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Technological Factors

The rapid entry of technology has greatimpact on the rural India, which leads tomajor change in terms of opportunities,

products, services, knowledge, & information. Telecommunications has given accessibility

to rural people. Telecommunications hastransferred village in many ways, which are of

interest of marketers. STD &PCO booths have emerged as a new

communications center in village givingchance to exchange of news & views to

villagers.

Introduction of information technology (IT),


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gy ( ),

which is equally supported by government,

has brought the cyber world to rural doorstep.

This created networks in India & abroad. This

gave rise to job opportunities, entertainment,

reaching out to friends & relatives acrosscountry & abroad is becoming popular among

the people.

Media along with IT has become an integral

part of life in rural India. Media not only

informs people but also educates &entertains

people.

Economic Factors


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Economic Factors

In order to understand the ability of ruralconsumer in terms of ability & affordability it isimportant to understand the economicfactors.

Economic environment of rural India has showngrowth due to-

New & improved techniques.

Awareness of education on agriculture.

Higher quality of inputs.

Farmers are supplementing their income withincome from other sources.

Banks have opened their branches in therural areas giving rise to increase in banking

& finance.

Political Factors


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Political Factors

Cooperative sector in rural India heavilyinfluenced by political factors.

It is a most important factor in developing

economy, causing change in socioeconomic order, level of disposable

income creating nouveau riche class

which has emerged as new referencegroups & opinion leaders.

EFFECTS OF OCCUPATION & INCOME ON


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CONSUMER BEHAVIOR

The buying decision pertaining to the

goods & services that are beyond the

basic ones are influenced by occupation& income of an individual.

A farmer faces variation in income

during pre harvest & post harvestseason.

Lifestyle


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Lifestyle

This deals with day-to-day behavior aswell as values, feelings, attitudes, instinct

&opinion of consumers.

Because of the difference in social &cultural environment, values, & mode of

life, there is a difference in the life style of

rural & urban consumers

Dimensions of life style


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Dimensions of life style

Dimensions of life style are-

Activities

Intent

Opinion

Demographics

Information Scales & Perspectives


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Evaluation

Rural consumer gets information from opinionleaders.

He is also exposed to exhibitions & road showsorganized by various agencies where he gets

opportunity of personal interaction. Exhibition & road shows are of prime importance

to rural consumer since he is understands theinformation & its relevance to him.

Demonstrations of products are an importanttool in rural marketing

Stages of buying Process


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Stages of buying Process

Consumer passes through five stages

while making a purchase decisions. They

are-Product recognition

Information search

Evaluation of alternativesPurchase decision

Post purchase behaviour


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Communication StrategyIn Rural Market

Advertising go hand in hand with


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Advertising go hand in hand with

economic growth.

Prior to liberalization, the rural market

was sellers market.

Due to economic liberalization &

increase in rural prosperity, themarketers are interested in informing

rural population about the benefits of

buying & consuming their products &services.

Since rural environment is different from


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urban, hence communicating to potential

consumers in rural India is challenging risk.

In many cases, advertising communication,

which is designed for urban area, is extended

to rural area without considering the values &sensitivities of the audience.

This leads to negative perception in theminds of audience.

A marketer needs to follow a


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communication mix consisting of

specific blend of advertising, salespromotions, personal selling & public

relations

.The communication in rural India goesbeyond these promotional tools.

This is because urbanites who are more

or less similar rural folks differ from

region to region.

Promotion Mix


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Promotion Mix

The promotion mix is the companysprimary communication activity, the entire

marketing mix promotions & product,

price, place mist be coordinated forgreatest communications impact.

Challenges in Rural


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g

Communications

The major features in rural communications,

Low literacy levels

Poor media recall & exposure

Heterogeneous

Diversely spread rural audience

Various language, lifestyle, & culture.

Heterogeneity & Spread


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Heterogeneity & Spread

No communication medium exists incultural vacuum.

Communicating to consumers who are

scattered across the country has posed amajor challenge to the market in rural

area.

This problem is more complicated by theheterogeneous nature of consumers

Characteristics of Heterogeneous Rural


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Market

Large number of villages spread over alarge area. Many are beyond the reach of

conventional media.

Difference in the level of literacy.

Variation in recall of media.

Understanding the Rural Audience


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Understanding the Rural Audience

In order to develop the effective ruralcommunications it is important to understandthe behavior & psychographics characteristics

of rural audience.There are two sets of audience in rural India.

People with low level of literacy, low buyingpower & are difficult to reach through mass

media Educated people from middle class having high

exposure to media & having considerablepurchasing power.

Effective Communication Process


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Effective Communication Process

The process includes,

Identifying the target audience

Decide the communications objectives

Designing the message & ensuring theeffectiveness of message

Selecting the communications channels

Designing the promotional strategies &integrating the communications process

Identifying the Target Audience


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Identifying the Target Audience

Know your customersbasic philosophy

of marketing. This can be achieved by

answering the following questions.Who uses the brand?

Who is my buyer?

Why he buys the brand?Who decides on which brands to be

brought?

After this prep ear the buyer profile


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p p y pbased on

Social class & initiatives

Receptivity

Lifestyles

Buying roles

Purchase needs

Value proposition

Social classes & intention


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Social classes & intention

Buying varies across the income levels.

Poor buys essentials

Rich buys premium products.

Rural buyers focus on the purchasing

the value for the money products &

assets that enhances their incomelevels.

Consumer Receptivity


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Consumer Receptivity

Lower level of literacy & less exposure to

media require a message, which is simple &easy to understand.

Correlate brand by primary colors &

numerals The brand has right chord with masses

e.g. NIRMA

Growing Brand Conscious


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Growing Brand Conscious

Rural buyer is becoming more brandssavvy due to the increase in penetration of

mass media.

Consumers are buying quality brandedproducts.

This also the influence of small towns

surrounding the villages.

Determining Communications Objectives


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g j

After identifying the consumers, the marketermust decide on the communications objectives.

The ultimate response of the communications isthe purchase & satisfaction.

Communicator takes effort to put forward his

message across the consumer so that he

changes his attitude & to get consumer to act

AICDA Model of Communications


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AICDA Model of Communications

Awareness-A

Interest-I

Conviction-C

Desire-D

Action-A

Designing the Message


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g g g

Formulating the message will be answers tofollowing questions-

What to buy? (Contents)

How to say it logically? (MessageStructure)

How to say it symbolically? (MessageFormat

In what context? (Message Association)

Who should say it? (Message Source)

Message Format


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Message Format

Marketer should develop the strategyformat of the message.

Different media provide different

opportunities to format the message. Picture, special voice, & effects, bright

colours have more influence on rural

audience.

Message Source


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Message Source

Message delivered by the attractivesource gets higher attention & recall.The credibility of source is of vital

importance.Sources are categorized as

Likable source -Film stars

Trustworthy sourceFriends, relative,neighbor

Expert source-mechanic mistry

Message effectiveness


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Message effectiveness

Many factors determine the effectiveness ofthe message. Message factors are-

Language

Pictorial presentation

Form of the message

Source of the message

Context association

Deciding the promotional Mix


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g p

Marketers spread their promotional budgetover the promotional tools, which are

Advertising

Sales promotions

Direct marketing

Public relations & publicity

Personal selling

Advertising


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g Advertising can be used to build a

brand & enhance the long-term imagefor the product.

Sales promotions

It involves direct contact with retailer &consumer. This tool is gainingimportance due to increase incompetition. It is a one to onecommunication with consumer orretailer. It is commonly used tool in ruralmarket.

Public relations & publicity


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p y

News items, features appearing in the

media carry more credibility to thereaders than advertisement.

Personal Selling

Most cost effective tool as it involves

one to one contact with the consumers.

Rural Media


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Rural media is broadly divided in to

Conventional mass media

Non conventional mass media

Personalized Media

Media Choices


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Puppetry

Folk Theatre & Song

Wall Painting

Demonstration, Posters

Agricultural Games

If you are trying to persuade people to do something or

buy something it seems to me you should use their languagein which they think

David Ogilvy

Conventional Media


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Conventional Media includes-Television

Radio

Press

Cinema

Outdoor

NonConventional Media


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NonConventional Media includes

Haats & Melas

Folk Media

Video vans

Mandi

Maha Kumbh


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Clients

Unilever , Titan, Medimix, GM Pens, Cavin Care, Anchor, Khaitan,

Maruti, Tata Tea

Achievements

Largest sampling exercise ever done

Fair & Lovely sachets distributed to 4.1 million 25000 packs worth

10560 family photographs taken as incentive

4 million people exposed through large screens

15.8 million people exposed through branding of Prayag railway station

17.4 million people exposed through branding of Naini railway station

18 watches sold per day as against an average sale of 38 watches permonth by the local dealer

Personalized media


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Personalized media includesDirect Marketing

Point of sales

Animation

Word of Mouth

Interpersonal Communications

rural markting

Documents