Page 133 - DMGT509_RURAL MARKETING

Rural Marketing

Notes Market segmentation is a process through which businesses identify if different market groups
seem to be good ventures. It looks at whether these groups are:
1. Easily identifiable

2. Measurable
3. Accessible
4. Responsive
5. Can be sustained

If you have any product that has more than one customer, then you have the potential to
implement successful market segmentation strategies. Doing so means that you need to have a
means of tracking your customers, identifying information about them - like their interests,
how often they buy, whether they are loyal to your product, etc. You also need to be able to
predict that they will remain customers and will be interested in the marketing information or
new products that you try to peddle to them. One of the best ways to do this is through customer
surveys and consistently strong customer service review techniques, during which you can
gauge the degree of interest and loyalty your customers have for your new products and your
business in general.
The requirements for effective market segmentation are as follows:
1. Measurable: The size, needs, purchasing power, and characteristics of the customers in the
segment should be measurable. Quantification should be possible.
2. Divisible: The segments should be differentiable. There must be clear-cut basis for dividing
customers into meaningful homogeneous groups. They should respond differently to
different marketing mixes. There should be differences in buyer’s needs, characteristics
and behaviour for dividing in groups.

3. Accessible: The segment should be reachable and serviceable. It should be accessible through
existing marketing institutions, such as distribution channels, advertising media and sales
force. There should be middlemen to distribute the products.
4. Substantial: The segment should be substantial. It should be large enough in terms of
customers and profit potential. IT should justify the costs of developing a separate
marketing mix.
5. Actionable: It should be actionable for marketing purposes. Organizations should be able
to design and implement the marketing mix to serve the chosen segment.

Task Explain different rural market mapping databases available to guide the selection
of target market in the rural areas.

7.3 Approaches for Segmenting the Rural Market

7.3.1 Based on Size of Village Population

The size of population residing in a village is a significant factor which determines the overall
potential demand for a product or service in that village

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