Page 23 - DMGT509_RURAL MARKETING

Rural Marketing

Notes As for each product there is a distinct customer group, they need different types of selling
efforts. The common factors remain as given below:
1. Knowledge of market segment

2. Knowledge of competition
3. Business environment
4. Product life cycle
Manufacturing units are established for making those products, which can be sold by the sales
department, and therefore manufacturing and sales need to work in close coordination. In
actual practice, most manufacturers are essentially assemblers of components, which they
purchase.
Sales organization is designed to sell the products made by the manufacturing unit. However, it
is found that once the sales set up is in place, they can sell a lot more products, which have
common customers. Bata sells shoes and besides they also sell shoe polish, brushes, laces and
socks as these products complement the sale of shoes. They also sell track suits, cardigans,
T-shirts and a host of other clothing. Hence manufacturing plans of firms differ quite a lot. These
depend on the market situation as also on the following points:
1. Plant location
2. Competitive strength
3. Availability of finance

4. Access to raw materials
5. Access to the distribution channels
When a new entrepreneur wants to set up a competitive plant, these factors provide entry
barriers to him.
The success of any venture depends on the marketability of its products. Hence, it is of utmost
importance that before selecting the product for manufacture and sale, thorough Marketing
Research is conducted.
Imagine a firm, which has the best of technology, location of the factory, financial resources,
manpower but no market/sales. You can imagine the fate of such a firm. Sooner than later, there
will be big lock on its doors and it will go into liquidation.
Production in a one-man shop is ideal as it is hand crafted and made exactly to customer
requirements. It is like tailor-made suit. In such a case, the production is limited to the capacity
of one person. Handicraft, expensive jewelry, and designer clothes belong to this category of
products.
In order to reach a large number of customers, Mass Production Techniques are used, like the
Assembly line production. This was introduced by Henry Ford in his car-manufacturing factory
and has since become the well-tested technique for large-scale manufacture.
The latest trend however is of fast changing customer needs. It is therefore necessary to have as
much flexibility built in the manufacturing process as possible to take care of changing trends
and demands of the customers. This is more important in areas where the rate of obsolescence is
high and cost of replacing the product with other not so high.
Branded and Generic Products: Most marketers want to sell branded products. Even
commonplace items like wheat flour; salt and sugar have become branded products now, as

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