Session II- Rural Marketing
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Transcript of Session II- Rural Marketing
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8/4/2019 Session II- Rural Marketing
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Session II
Xavier Institute of Management, Bhubaneswar
Segmentation, Targeting & Positioning in
Rural Markets
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Orientations to the Market
y Selling orientation - Product orientation - Marketing orientation
y C K Prahalad and V Ramaswamy Co- creating value with
customers
yMarket as a target to Market as a forum
y The contribution revolution
y Customer is the king/ queen
y Understanding the customer is vital
y The Mahatmas words at railway stations
y Foundation of the STP process
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The STP Process
Marketing Decision Marketing Actions to be Undertaken
Segmenting Identifying and developing profiles of
market segments
Target Evaluating segments and deciding the
market coverage strategy
Positioning Identifying , selecting and
communicating competitive
advantages
Source: The Rural Marketing Book- Khasyap. P & Raut. S
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Heterogeneity in Rural IndiaVariable Example
Socio Cultural Differences Caste Based Habitations inVillages
Population Size & Density KeralaVs Andhra Pradesh
Difference in Infrastructure BIMARU statesVs Karnataka
Media Exposure levels KeralaVs Orissa
Literacy Levels Himachal PradeshVs Bihar
Income levels & patterns Farmers & Daily Wage Earners
Family Structure Joint Families & Nuclear Families
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Segmentation: Issues & Options
y Measurability- Accessibility- Differentiability & Profitability
y Is it easy to measure segments in rural areas?
y What are the issues in accessing rural markets?
y Is it necessary to segment underdeveloped markets? ( needfor differentiation)
y What is the appropriate pay back period by focusing on a
segment?
y What should be the appropriate market targeting strategy?
y Mass Segment Niche Micro approaches
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Basis & Approaches to SegmentationSegmentation
Criteria
RelevantVariables ( Indicative)
Geographic Region & SCRs
Village Size and density
Climate
Demographic Age
Gender
Income: ( NCAER )
Landownership
Education ( SEC Classification)
Occupation ( SEC Classification)
Type of home ( SEC Classification)
Psychographics Lifestyle Rural, Urban & Rurban
Personality
Behavioral Occasions
Benefits sought
Loyalty & usage status / rate
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Demographic SEC Classification
y MRUC and IRS
y Three variables Education of chief wage earner durable
ownership- type of house
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Multi Attribute SegmentationThompson Rural Market Index Mica Rural Market Ratings
1. Developed by HTA
2. 26 variables
3. Demographics,agriculture,
electrification and banking
facilities
4. Weights are given to variables
5. Data from 383 districts collected
6. Classification into A, B, C, D and E
markets
1. 42 socio economic indicators
for ranking districts
2. Linear combination of six
variables for measuring marketpotential of districts
3. Classification into A, B , C , D & E
markets
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Contd
y Rural market ratings by RK Swamy BBDO
y Lincompass by Linterland ( Lintas IMAG)
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Effective Market Targeting
y Segment attractiveness must match company objectives and
resources
y Undifferentiated marketing- Coca Cola
yDifferentiated marketing Tractor Marketing
y Single segment concentration
y Deciding the appropriate coverage strategy
y Coca Cola An arms length from desire
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Positioning
y A distinctive place in the mind of the consumer
y Identifying the unique features of the product/ service
y Differences with respect to competition
y Selecting differences having a greater competitive advantage
y Communicating the best advantage to the consumer
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Issues in Positioning
y Attractiveness-Distinctiveness-Pre-emptive -Affordability -
Communicability
y Under positioning over positioning confused positioning
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Close of Session
Thank You