Page 15 - DMGT509_RURAL MARKETING

Rural Marketing

Notes with speedier reach to the market place. They also get into a niche market where their product
has the best acceptance. In their niche market they can communicate with the customers in a
language most easily understood by them.
Competitive understanding should be achieved by a comparison of the market share of
competitors and the status of different players in the industry. Competitive information can be
gathered through market surveys, interaction with channel members and industry publications.
Competitors’ balance sheets too provide information about competition. Such information
collected from different sources should then be collated, analysed and the results disseminated
to the concerned persons.

Market leaders can at times become low profit entities and the second and the third level players
can take the leadership position if they find it attractive enough for their products. These
companies use penetrating pricing policy, attractive promotion plans, low cost production and
product differentiation. However, a cost-benefit analysis must be undertaken before attempting
increase in market shares.
The companies having low market share could be making good profits compared to high share
companies because they are not investing in marketing expenses to that extent. They could be
claiming better-personalized service and tailor-made solutions to their customer’s problems or
product needs. “We are second and we strive harder for your satisfaction should be their punch
line”. These companies could cater to niche markets better as they understand its needs better.

!
Caution Before a company considers entering the rural market, understanding the types of
products and packages that rural Indians typically use is crucial. By taking into account the
low disposable incomes and the unique product and package needs of this market, consumer
products that are designed and packaged for this market have great potential.

1.7 Unique Selling Proposition

Companies do a cost benefit analysis before planning marketing communication as the
advertising, promotion and personal selling revolve around the USP. A single product benefit
well advertised can capture the customers’ imagination and get firmly planted in their psyche.
Attitudes, beliefs and purchase decisions are taken due to such mindsets. However, at times
multi-benefit communication can be used to further focus the product into the psyche. Products
need to be differentiated for achieving distinctive competitive advantage. The differentiation
can be made in product itself, and in the following areas:
1. Product features

2. Service, both sales service and after sales service
3. Quality, both static structure and dynamic specifications
4. Consistency of quality

5. Reliability of product and service
6. Availability of spares and repair facility
7. Customer training in proper use of the product
8. Channel members personnel
9. Advertising campaigns

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