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Unit 1: Rural Marketing – An Introduction




          branding enables the buyers to be selective in buying a particular brand after comparing it to  Notes
          other brands. It helps sellers in highlighting the virtues of their products to catch more business.
          However, over a period of time even brands become generic names, as Bata is synonymous with
          shoes, Mobil oil with engine  oil, and Dalda with vanaspati ghee. Heavy advertising effort
          establishes the brand though this can backfire too, if the brand gets to be accepted as a generic
          name rather than the brand of a firm. Care needs to be taken in this regard for avoiding such a
          situation.
          Patents and Patent Laws: If the manufacturer is making a product for which he has a Registered
          Patent under the country’s Patent laws, than he can feel secure that other competing firms will
          not be  able to use the same design in their manufacturing process and the firm can  enjoy
          monopoly situation at  least till the expiry of the Patent. However, firms should take care of
          getting the Patents renewed much before the expiry date to avoid any embarrassment on account
          of getting caught by competition that comes with a copied product. Such copies are usually a
          shade better and lower in cost because the firm has not spent any money in developing the same
          except spending on copying costs, which is also known as Reverse Engineering.

          Brands: Any firm, which becomes a market leader normally, has at least one Lead Brand. The
          firm tries to sell its other products under the umbrella of that brand. Sometimes, firms use the
          popular brand to sell other products, either bundled with it or by way of promotion of lesser-
          known product in coordination with the main brand. Computer sellers are known for selling
          bundled products so that they can sell slow moving products  along with fast moving  ones.
          Brand image or brand equity is perhaps one of the two most important aspects of any business,
          the other being market share.
          Once a firm has established one of its brands as a leader it diversifies to include complementary
          products. This helps in increasing turn over, and profits of the firm. However, if the new products
          clash with the existing ones, or their quality can be suspect in the beginning, such products could
          do harm to the established product. It is, therefore, necessary to consider remaining supplier of
          only Specialized Products about which the firm is sure on quality and which enjoy a good brand
          image. Firms can also provide quality service for these special products, which will lead them to
          improve increasing brand image/equity and profitable sales. Thus there is always a dilemma of
          having specialized product or generic mass-produced ones. Today, firms are trying to customize
          mass produced products to gain customer goodwill. For example, you can get a Maruti car from
          the manufacturer with customized seats.

          However, nothing can take the place of good service given by the seller for the product to the
          customer for increasing business and thereby increasing profits. Availability of reliable service
          and genuine spare parts can surely increase business as these ensure longer usage of the product,
          which make them cost effective to the buyers.
          Today in most consumer products, which are not health related, there are three-quality categories:

          1.   Top quality, for the rich and discerning buyers, sold through Super markets and boutiques.
          2.   Second quality for the middle income buyers sold through utility  stores and  bargain
               counters.

          3.   Third quality for the working class buyers sold through bargain stores and small shops.
               These are also considered suitable for the rural markets.
          In case of health related and food products, there are Government regulations, which control the
          quality standards of the products.
          As can be seen, manufacturing function is meant to create a product, which can be used by the
          buyers. It therefore, becomes a conversion process, as there are a number of sub-products or





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