Page 234 - DMGT509_RURAL MARKETING

Unit 12: Principle of Innovation

relevant to the rural consumers whose product use environment is very different from urban Notes
consumers.

12.2.3 Price Innovation

Conserving resources is the mantra; the product meant for rural market must eliminate or
reduce, the various recurring costs and thus should reduce resource intensity. The option of
reuse, refill and recycle are critical principles in product development for rural market as they
reduce the overall cost of the product. India is a value for money society- while the value may
range from a few rupees to millions, the basic instinct remains the same. Market strategies must
ensure the prices of the product are reduced either through re-engineering, cost saving in
operations, reduction in pack sizes, deletion of frills from the core product, etc. but this reduction
price should not be at the cost of quality and service. Organisations have to focus on price
performance of the product.

Self Assessment

Fill in the blanks:
1. ....................... markets are characterized with huge potential for marketers.
2. ....................... of yesteryears are entering into the rural market as first time buyers for a
large number of products in a large numbers.
3. The ....................... and practices of innovation to be adopted in rural market have to take
into consideration: needs, lifestyles and consumer behaviour of the rural population.
4. ....................... must focus on building a logistics infrastructure, including manufacturing
that is in accordance with the prevailing conditions and can deliver solutions in a cost
effective manner.
5. One of the key issues taken up by the ....................... is the creation of micro business
enterprises.
6. Marketing, especially in today’s globalised world, plays a crucial role in any .......................
enterprise.
7. ....................... is an example of a product market where NGO involvement has been extensive
and has taken a number of forms.

8. ....................... must ensure the prices of the product are reduced either through re-
engineering, cost saving in operations, reduction in pack sizes, deletion of frills from the
core product.

12.3 Role of Government and NGO’s in Rural Marketing

The role and functions of Non-Government Organisations (NGOs) have increased manifold as
they have diversified their work areas and today, address almost all issues concerning man’s
social environment. Their presence has been especially marked, all over the country, because of
several developmental initiatives. Realizing their need/s and potential, the Government of
India has assigned them a place of prominence in the implementation of development
programmes.
One of the key issues taken up by the NGOs is the creation of micro business enterprises,
especially in rural areas. It has, however, been observed that in such enterprises, marketing
comes forth as a major problem. As a result, stock of finished goods piles up. In case of perishable

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