Page 29 - DMGT509_RURAL MARKETING

Rural Marketing

Notes  Rural electrification and roads have been given priority in the government’s planning
process.

 Infrastructure continues to be a challenge in rural India.
 Companies must plan to have a covert intelligence network that is legal and yet provides
them with competitive information.

1.13 Keywords

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.
Cost Leadership: Product manufacturing cost have a major bearing on how well it can be sold in
the market. If all competitive products are equally acceptable to the customers, the firm with
lower cost will gain advantage over competitors.

Differentiation: As customers are always looking for products, which are different from other
similar products, sellers try to give a little modification in the product or service, or distribution
to make a marked change from the run of the mill operations.

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.

Payment Collection: The majority of the rural population is still unbanked. Clearly, non-cash
collection becomes rather unlikely. Cash collections, on the other hand, are messy and difficult
to monitor, especially since cash cards or technology-enabled centralized POS have still not
reached rural areas.
Quality Standards: Firms, find out through market surveys the correct specification of the
product they plan to make. These specifications are then converted to manufacturing standards
and firms have to keep meeting these specifications for each unit produced by them.

1.14 Review Questions

1. What are the nature and characteristics of Rural Market?
2. Discuss the Business Environment in Rural India.
3. What do you know about product promotions in Rural Market?
4. Describe the challenges in Indian Rural Market.

5. Explain the Unique Selling Proposition.
6. Explain the product promotion in Rural Markets.
7. Describe the Rural Markets.
8. Describe the challenges and opportunities in Rural Market.

9. What do you know about cooperative service organizations?
10. Describe the marketing relativity through competition.

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