Page 83 - DMGT509_RURAL MARKETING

Rural Marketing

Notes 8. The ...................... of raw materials is derived from the plan of manufacture of products,
which use the material.
9. ...................... takes into account the features, which are unique to the product.

10. ............................. are the people who place the requirement of the product before the firm’s
authorities.
11. ....................... are the authorized people who can decide spending of money for making the
purchase.

4.5 Market Segmentation to the Lure Rural Customer

Marketing and communicating to the target market segment, of new innovative product calls
for sustained efforts of advertising, personal selling and word of mouth appreciation of product
over a period of time.
A company may launch its new product to meet the needs and requirements of the rural
customers.
These Consumer based new products are the one’s which the consumers find totally new.
These innovative or the new products are seen by the firm as new to it. The firm may ignore
the fact the product may not be new to the market as competitors may already have introduced
the same.
Product innovation takes into account the features, which are unique to the product. One
refrigerator manufacturer is claiming novel door cooling system, not available in other
refrigerators.
The new product development can be on a continuous basis or on one-off base. Telephone
industry has had both types of innovations.
Consumers look for relative advantages in each product. Also the expense of making change
and product’s compatibility with other products with the consumer too plays an important role
in buying new products. For example, the modem, and printer should be able to work with the
computer before they are purchased.

4.6 Organizational Buying Behaviour

Villages too have manufacturing units either in small sector or even as cottage industry. For
organizations involved in manufacturing goods purchase, raw materials and components needed
in the manufacturing process. They also buy consumables like electricity, water and gasses,
which are consumed, in the manufacturing process. Such purchases by the firms have the following
characteristics:
1. Fewer buyers but large quantity buyers
2. Close supplier and buyer relationship

3. Geographic concentration of buyers
4. Derived demand
5. Inelastic demand/Fluctuating demand
6. Professional purchasing
7. Several buying influences

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