Page 85 - DMGT509_RURAL MARKETING

Rural Marketing

Notes Environmental factors are also major influencers in organizational buying as follows:
Environm ental factors Organizational Interpersonal Individual Business
factors factors buyer
Level of dem and Objectives Interests Age -do-
Econom ic outlook Policies Authority Incom e education -do-
job position
Interest rate Policies Authority -do- -do-
Risk of technical Procedures Status Personality -do-
changes
Political and regulatory -do- -do- Attitude for risks -do-
developm ents
Com petitive Organizational Empathy -do- -do-
developm e nts structure
Social System s Persuasiveness Culture -do-

Environment factors like market demand of the product influences the quantity of purchase as
also purchase frequency.

Economic outlook of the country gives the information on the money supply situation, interest
rates for leasing and it has influence on purchase decisions.
If the firms know that a new technically superior product is going to be available in the near
future, they would not risk large purchased of materials.
Political environment deals with the political will which allows or restricts trading, like the
anti-dumping laws of the USA.
If the market is swaying towards a better competitive product, the firm may make only cautious
purchases.
If the sociological changes force the market towards decline then also purchases get reduced.
With the availability of packed wheat flour no one is buying wheat and getting it ground in a
mill.
Organizational policy changes, changes in hierarchy levels, promotions, procedural changes
and systems could alter the purchase pattern of the firm.

Factors connected to individual members of a firm like inter-personnel relations, people’s
authority, personal interests, empathy with suppliers and persuasiveness of marketers are
important for purchase decisions.

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Caution The rural market is a fast growing one and has a huge population with a great
level of disposable income. To encash this, products have to be specifically developed to
meet the needs of rural markets. Sometimes, existing products might have to be modified
to suit these markets too accordingly.

4.7 Consumer Behaviour — Positivism and Interpretivism

Attitudes play an important role in purchase actions and it is necessary to understand as to how
they are formed.
1. Direct experience from using the product, “The soap is to hard.”
2. Influence of family and friends, “Son, buy only Honda motorcycle, it is the best value for
money.”

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