Page 199 - DMGT509_RURAL MARKETING

Rural Marketing

Notes 3. Service facility needed by the product and its availability with the channel
4. Number of products available from one manufacturer for the channel
Customer Reach: Sales orientation of the first half of twentieth century was mainly on manufacture.
Once the product is in the market it was sold. Competition was almost absent in most products.
In some products there was total monopoly and the manufacturer could set his terms of sale. In
majority of products however, there were a few manufacturers. In other words there was
oligopoly and the manufacturers could join hands and control market prices. Later on in order
to avoid the situation of cartel formation the Government of India set up Monopolies And
Restrictive Trade Practices Commission (MRTPC).
Today in the beginning of the twenty-first century, manufacturers are facing severe competition
in practically all the products and the manufacturer who can place his product within easy reach
of the buyer definitely gains advantage over other competitors.

Taking this view Eureka Forbes has started personalized selling of their products, which include
Consumer durables like Vacuum Cleaners, Water Purifiers. The sales are made by firm’s
salespersons visiting the homes and offices of prospective customers with sample of the product,
when they can give live demonstration to convince the customers and obtain an order.
Many retailers have resorted to home delivery systems, including for consumer durables. The
customer can buy a product by telephone order or through Internet purchase and the product is
delivered to his home. Such purchases are paid for by either cash or through credit cards.

Did u know? Rural India is sparsely populated and so it is obvious that the distribution
costs are high. Here, one needs to deploy innovative approaches in order to bring down
the costs.

10.2 Customer Convenience Buying

In every residential locality Convenience stores or retail outlets have come up. These shops
keep stocks of a variety of products of daily needs, which the residents buy. As the shops keep
competitive products they sell the products as per the following plan:
1. Brand as per customers demand.
2. Brand on the basis of sales commission they get from the firm. If the customer has no
choice the shopkeeper will try to sell such a product where he gets maximum profit.
3. In case the shop does not have the customer demanded brand it will try to convince the
customer first to buying the brand in stock.

No manufacturer can afford to avoid the retail shops, which cover the convenience criteria for
the customers.

Sales with Service

Several consumer durable products require service to be provided to the product on either
periodic basis like automobiles or once in a while basis like air-conditioners. Retailers who can
provide such service should sell all such products, which need regular service. Maruti car dealers
are selected only on the condition that they can provide proper service to the sold cars. In fact
Maruti provides technical training to the engineers of their dealers. The dealers have to maintain
stocks of spare parts and accessories, which enables them to provide timely proper service.

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