Page 12 - DMGT509_RURAL MARKETING

Unit 1: Rural Marketing – An Introduction

4. Services like, health clinics, water supply, electricity, eateries, inns Notes
5. Housing
Pricing in rural markets is tricky because the companies spend more on transporting the products
as compared to transporting them to the cities. However, the paying power in rural areas is
much less. Companies can, therefore, plan to have low cost packaging with a bit of attractive
glitter while keeping the product unchanged in most cases. The companies can work out the
rural customers MTBP (Mean Time Between Purchase). They will find that the rural customer
will stretch the purchase time much longer. This would be true for most FMCG products. Food
items, however, would be needed as per household requirements. The business, however, will
snowball because of the sheer numbers of buyers in villages.

1.5 Product Promotion in Rural Markets

Products are kept for sale at the grocers’ shops, diesel/kerosene dealers, and tractor repair
shops. Besides, companies sell through mobile vans that cover the villages mostly on the days
of their weekly markets. These vans carry advertising materials, audio-visual equipments for
showing movies besides company’s advertisements and the products for sale, and also samples
like shampoo sachets for test marketing of the products.
Product promotion in rural markets is done through the vans. Besides, the radio, which has a
wide coverage as it covers the entire country geographically, is used. Television reach has
increased of late and with better electricity availability it has become a good option, more
especially because of its universal appeal. Pamphlets, loudspeaker announcements during weekly
markets, mostly on roaming rickshaws, and banners on elephants and camels are used in many
areas.
Villages need schools, as the literacy levels are still low. Technical and computer education is
becoming increasingly important even in villages. There is a great need for libraries, bookstores
and newspapers, magazines in local languages.
Income levels in the rural India can be described as follows:
1. High in certain areas for rich land owning farmers

2. Low for farmers with small lands
3. Very low for farm hands and migratory farmers
Village industries, specially cottage and small scale industries, handlooms, milk farming, and
sheep rearing need governmental support or infusion of cooperatives in these areas. The Amul
example must be replicated in other parts of the country. The village Bania, who has been the
proverbial loan shark, is fast disappearing as a tribe and yet the rural banking needs much more
thrust. A number of banks have started branches in villages, though they are affected by non-
availability of collaterals for giving loans to farmers. Farm insurance would go a long way in
settling this problem it is hoped. Bad crops further derail the interest payments leading to bad
debts that retard the progress for which the banks have been setup.

1.6 Strategic Challenge – Understanding Customers Needs

Customers have needs, which are obvious, like the need for food, clothing, and shelter. Some of
these needs are explicitly mentioned like the need of a house. However, what is real is the need
of the house in a locality close to the farm, school and shopping area. Besides, the unstated need
could be of a pucca brick house.

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