Page 210 - DMGT509_RURAL MARKETING

Unit 10: Distribution Strategies for Rural Market

Bundling of Products: Where a product selling less is given alongside a fast moving product at Notes
a reduced price.
Discount Stores: These are coming up for several manufacturers. Products, which, have some
small defect are sold at a discount at these shops. Manufacturers use these stores to fight
competition. While heavy discounts can be offered on practically good products, no price war
can be started on this basis.
Franchise Operations: Manufacturing company or service company can give legal right to a
business organisation to run their business, by using their trade name. Mc Donalds is one such
example.
Retailers: These are now using the latest electronic products like computers for billing, inventory
control, building customer database, and electronic anti-theft and surveillance devices. Bank
retailing has gone to the extent of salesman less sales through Automatic Teller Machines or the
ubiquitous ATMs.
Shop-less Shops: They sell products to customers through television shows, computer advertising
and telephone marketing. Television has time slots during which products are shown and their
use demonstrated.
Super Store Chains: They have come up to provide the same range of products, at the same
prices and similar selling techniques. Normally, the customer has one such store near his house
and he does not have to travel long distance to his super market for shopping.

10.9 Review Questions

1. Discuss the role of wholesalers, distributors and retailers in India Rural context.
2. What are the best distribution methods for rural markets?
3. Discuss the role of retailing in rural India.

4. Describe the Multiple Product Manufacturers.
5. Explain the Leasing and Hire Purchase.
6. What do you mean by catalogue sales?
7. Explain the term “Web Marketing”.
8. Define the term Product Bundling.

9. Explain the term “Agency Operations”.
10. Explain the distribution pattern for consumers and Industrial Goods.

Answers: Self Assessment

1. independent 2. catalogue
3. marketing 4. Agents

5. Stockists 6. Sales
7. True 8. False
9. False 10. True
11. True 12. (b)

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