Page 100 - DMGT509_RURAL MARKETING

Unit 5: Rural Consumer

Notes
Figure 5.2: Farmers Usually do their Shopping in the Nearest Haat

A marketer’s response to the influence of cultural and social practices is in the areas of product
and of promotion. Marketers design products to reflect the social and cultural influences.

Perception and its Influence on Product Design and Message

The marketer who seeks to modify the behaviour of the rural consumer needs to influence the
consumer’s perception and attitude. It is here that the marketer has to be careful in designing
products and developing message for the rural market. The decision variables of product and
message are critical to marketing effectiveness in rural markets as the colour, shape and
actions that hold meaning for rural consumers are different from those held by the urban
consumers.

Consumer’s interpretation of product and promotion contribute to creating the position for the
product. The interpretations of the rural consumer differ from those of the urban consumers.
Colours are interpreted differently, so are sizes and shapes. The lower literacy levels in the rural
markets increase the importance of the perceptual influences. In interior markets, brand
identification is through visual patterns—a red soap cake signifies Lifebuoy soap. The strong
influence of perceptions on rural consumers provides a good reason for the marketer to develop
separate marketing strategy for the rural market.

5.7 Attitude to Quality and Price

Conventional wisdom on rural marketing believes that the villager craves, but can’t afford the
products his city cousin consumes. As a result, companies usually try to reduce the prices of their
products either by creating smaller pack sizes, or by compromising on quality. This works
sometimes, and with some products. Small pack sizes get acceptance in markets that can pay
only a small price because of the nature of income receipts. A landless labourer may get a small
sum of money every day, so he buys his provisions daily and does not have a big sum to spend.
He will therefore buy something that has a small unit price. The introduction of the sachet pack,
for instance, led to a boom in shampoo sales during the Eighties. Hindustan Lever (now known
as Hindustan Unilever Limited) found that retailers in villages were cutting its large 100 gm
soap into smaller pieces and selling these, so it introduced a small 75 gm soap ( Joshi, 1991).

The rural consumer is a very careful buyer. He is very conscious about getting value for money.
He does not like to pay extra for frills he cannot use (Rajan, 2005). However, it is not true that
only cheap brands sell in rural markets. Usha found that the sale of its economy models was

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