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Rural market segmentation and Targeting & Rural Marketing Research
1. Submitted To Submitted By
Sanmeet Sidhu Arsh Koul
Navpreet
Manish Mehra
2. The right product, in the right place, at the right time,
and at the right price.
According to Kotler “Marketing is the social process by
which individuals and organizations obtain what they
need and want through creating and exchanging value
with others”.
3. Rural marketing involve delivering manufactured or
processed inputs or services to rural producers or
consumers.
Rural Marketing is also defined as any marketing
activity in which one dominant participant is from a
rural area.
Rural marketing is a two- way marketing process that
includes the flow of goods and services from rural to
urban areas and the flow of goods and services from
urban to rural areas as well as the flow of goods and
services within rural areas.
4. A market segment is a classification of potential private
or corporate customers by one or more characteristics,
in order to identify groups of customers, which have
similar needs and demand similar products or services
concerning the recognized qualities of these products,
e.g. functionality, price, design, etc.
Segmentation is the process of dividing a
heterogeneous market into several sub- markets or
segments, each of which tends to be homogeneous in
all significant aspects. The division is based on the
premise, that different people have different
preferences.
6. Segmentation on the basis of geography is done
depending on various factors such as
Region: North, South, East and West.
˃ Proximity to the feeder town:
Density: The number of people per sq. km
Climate: Moderate, rain fed or dry with scanty rainfall.
Level of Irrigation: Whether good, moderate or scanty.
7. Demographic segmentation calls for grouping of their
demographic characteristic
It is based on the population, age group, literacy level
and income of the rural consumer.
8. Such segmentation which is done using variables such
as Lifestyle of the people, (whether rigid, traditional or
changing), Occasion, (whether on a regular day or a
special occasion), Benefits sought from the product
(such as Quality, Price and Service), and Loyalty to
brands (whether Low, Medium or High.)
9. It takes into account the specific behavior of a
consumer related to occasions, benefits, user accounts
etc.
10. In practical terms it is very difficult for a marketer to
depend on a single variable for segmenting the market.
It is a complex function since it depends on multiple
factors that define market dynamics. In order to
identify smaller, well defined, meaningful target groups
marketers use several variables.
11. Untapped rural potential
6,27,000 villages across the country account for 70% of
population
60% of national demand for various product categories
comes from rural areas
41 million kisan Credit Card have been issued
12. Once segmentation has been done the marketer needs
to evaluate each segment to decide which segment to
target.
Targeting involves evaluating various segments and
selecting how many and which one to target.
14. While evaluating market segments two broad factors
are considered
1. Overall attractiveness of each segment
2. Company’s objective and resource competencies.
15. While evaluating segments in rural one should not be
impressed by size alone. This is because in rural the
size of market may be big but purchasing power on
people in rural area is limited. Therefore the growth of
rural markets for different product categories should be
evaluated while targeting the market.
16. Marketers should evaluate the segment opportunity
with reference to their short term and long term
objectives. If a company’s objective is to achieve long
term sustainable sales volume by expanding its
customer base then it has to go rural instead of
expecting consumers to come to urban markets to
purchase the products and services.
18. Undifferentiated Marketing takes into consideration what
is common among consumers and tries to include it in
offer. It majorly relies on mass distribution and mass
advertising. Only one product line keeps down the cost
of research and product management. Due to low cost
incurred in production and distribution the company can
afford to set its price low.
19. Differentiated marketing strategy investigates and
identifies differences between segments and tries to
match the market offer to desires and expectations of
each segment.
This strategy results in:-
Strong identification of company in product category.
More costs but higher sales and profitability.
More loyal consumers.
20. Due to small number of consumers in each segment,
targeting only one segment would spread marketing
efforts thinly over a vast area. As companies invest a
great deal of time, effort and money to reach rural
markets, it is important that they should have a multi
segment strategy rather than single segment strategy to
ensure adequate returns on investment.
21. In the case of single segment there is a risk of change in
the preference if consumers although there is a lower
risk of this in rural, as the pace of change in preference
if consumers is slower. This is also known as niche
marketing. EG HLL dominates the mass market in rural
with a series of niche brands each aimed at small
section of consumers. With brands like LUX, LIRIL etc
HLL targets different consumer segment in rural
market.
22. Research is the guidepost to laying the
foundations of a successful marketing
program, it must be planned, keeping in
mind what is the objective of conducting
research. It must also be designed in order to
get maximum inputs, on an accurate and
authentic framework, in order to yield the
right results.
23. Marketing research is a function which links the
consumer, customer and public to marketer through
information. Information used to identify and define
marketing opportunities and problem, generate refine
and evaluate marketing actions, monitor marketing
performance and improve understanding of marketing
as a process.
25. Primary data are collected especially to address a specific
research objective. A variety of methods ranging from
qualitative research to surveys may be employed.
Some of the sources are
1. Retail shops
2. Tea stalls
3. Schools
4. Melas
5. Influence groups
26. These are the readymade sources of information that a
marketer can use for his or her research. This kind of
data can be collected from government publication
websites, research agencies.
Some best sources from where marketer can get
information are
1. Government Websites
2. Private Bodies
3. Publications
