585 be rural marketing 2

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Infrastructure


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Rural Infrastructure

Transport and communicationRoad connectivity

Good connectivity, particularly in rural areas, between sub-divisional townsand districts headquarters is often the primary means of supplementing public efforts

directed at providing basic health and educational services, as well as infrastructuralsupport for production and trade and commerce at the local village level.

70% of the population continues to live in rural areas and where over 50% ofvillages with population of less than 1,000 have yet to be connected by roads.

Pradhan Mantri Gram Sadak YojnaLaunched in Dec 2000 with the objective of providing connectivity through

good all weather roads to all unconnected habitations with a population of more than500 persons.


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Post offices

India with its 1,55,279 post offices as on 31 march 2002 (1,38,756) postoffices are in rural areas) has a postal network that is largest in the world.

On an average, a post office serves an area of 21.17 sq km. and apopulation of 6,614 persons


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Radio

Six radio stations at the time of independence.

All India Radio today has 208 radio stations.

123 FM channels

Provide coverage to a population of 98.8%% spread over 90% of the country.


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Television

Doordarshan (DD), the national television of India, is one of the largest terestrialnetworks in the world.

Reaches over 87% of the population.

Community television sets have been introduced under various schemesoperated by central and state governments.

Doordarshan has a maximum viewership of 90%, the lowest cost per thousandaudience.

Advent of DTH services


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Press and Print Media

As per the Registrar of Newspapers for India (RNI), the total number ofnewspapers and periodicals published in India in the year 2000 was 49,145,

appearing in 101 languages and dialects.

The reach of newspapers in rural areas is very poor; only15% of the copies ofnewspapers (regional languages) reach rural.


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Telecom Services

By 2004, over 80% of all villages had been connected through 5.4 lakh VillagePublic Telephones (VPTs).

1.42 crore telephone connections had been given in rural areas.

84% villages are now covered by VPTs.

PCOs licences where there is no VPTs


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Mobile Services

Out of 3.6 crore current mobile phone users, nearly 15% are in rural areas

Faced with the prospect that the growth in the mobile phone user base would hita saturation point in big cities, Indian cellular service providers are gearing up to

delve deeper into under-penetrated rural areas.

Mobile Postman Scheme- A scheme by GOI


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Social Infrastructure

Rural Health services

Sub-Centres

Primary Health Services

Community Health services


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Public Distribution System

PDS means the distribution of essential commodities to a large number ofthrough a network of FPS ( Fair Prices shops) on a regular basis ( often referred toas ration shops).

The commodities distributed are wheat, rice sugar, edible oil and kerosene.

PDS with network of about 4.76 lakh FPSs is perhaps the largest distributionnetwork of its kind in the world. Of the total number of FPSs, 80 percent (i.e 3.8lakh) are in rural areas.

As per the norms prescribed by the Government, one FPS caters to 1000population in rural areas


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Agri Infrastructure

Mandis

Mandis are agricultural markets set up by state governments to procureagricultural produce directly from farmers.

Located in highproduction centres of different crops, these markets may becategorized as grain mandis, cotton mandis, soya mandis and so on.

Most agricultural areas with a population of more than 10,000 have mandis andeach mandi on an average caters to 1 36,000 population.


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Marketing Infrastructure

Haats

Despite rapid urbanization and the establishment of permanent shops invillages, haats (Periodic markets) still play an important role in the rural economyas well as in the social life of villagers.

A first-point contact for villagers with the market

A means of distributing local products and exchanging rural surplus.

An opportunity for buying daily necessities as well as farm supplies andequipment

A place for political, social, and cultural contact.


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MelasMelas are gatherings of people away from their residences for entertainmentand for the sale and purchase of goods and services at a particular time.

Melas may be classified on the following basis:

Religious, cultural, or commercial ( commodity, cattle, exhibition)

Local, regional, and national

One day, short duration (2-7) days), or long duration ( more than a week)


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Shops

As per the 2001 census, out of the 1.33 crore shops in India , 55 lakh are in ruralareas.

The types of outlets found in villages include the grocery store, paan shops, flourmills and tailor, barber and cycle repair shops.


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Rural Segmentation

Being a heterogeneous mass of populationon all the demographic variables, it isnecessary to segment rural market.

Unlike the socio-economic classification ofthe urban market, rural markets require othervariables like culture, infrastructure etc.


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Segmentation

Any marketer can target a market with twobroad strategies:

Mass Market Strategy

Market Segmentation Strategy


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Segmentation Variables

Geographic:

Region, state, district, village

Demographic:

Age, gender, occupation, buying power

Psychographic:

Social Class, lifestyle, personality

Product Related Type of usage, amount of usage


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Conditions

Measurable

Accessible

Profitable

Data Availability


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Approaches for segmenting Rural Markets

Based on size of Villagepopulation:

Determines overall potentialdemand

*Hardly any shop

**50% of pop and 60% ofwealth

Population No. ofvillages % of totalvillages

< 200 114,267 17.9*

200-499 155,123 24.3*

500-999 159,400 25.0

1000-1999 125,758 19.7

2000-4999 69,135 10.8**

5,000-9999 11,618 1.8**

10,000 &above

3,064 0.5**


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ORG-MARG has suggested the classificationof the rural belt in 3 categories:

Class I- pop over 5000

Class II- pop between 1000-5000

Class III- pop less than 1000


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Based on size of Farmland

Income is also an important factor which determinesconsumption.

With nearly 55% income in rural areas coming fromagriculture, land holding pattern can be a basis for

segmentation. Following classification is used:

Marginal farmer: holding upto 1.0 hectares

Small farmer: holding 1.0-2.0 hectares

Semi-medium farmer: holding 2.0-4.0 hectares Medium farmer: holding 4.0-10.0 hectares

Large farmer: holding 10.0 hectares and above


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Based on Sociological Characteristics

Proprietors of land

Rich Farmers

Small Peasants or Marginal Farmers

Tenant Farmers

Agricultural Labourers

Artisans & others


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Based on Income

Rural Rich Consumers:

Concentrated Rich Consumers

Scattered Rich Consumers

Rural consumers around urban areas

Rural consumers above poverty line

Rural consumers below poverty line


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Sales Management

planning, direction and control of personal

selling, including recruiting, selecting,equipping, assigning, routing,

supervising, paying and motivating asthese tasks apply to the personal sales

force.

American Marketing Association


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Firm SalesManager

SalesReps

Customer

Value


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Sales Management Process

Formulation of StrategicSales Management Programme

Implementation of StrategicSales Management Programme

Evaluation and Control ofSales Force Performance


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Sales Process

Prospecting

&qualifying

Pre-

approach

Approach

Presentation&

demonstration

HandlingobjectionsClosing

Follow-up

Identify qualifiedpotential customers

Learn as much aspossible about

customer

Make arelationship

Ask for an orderOvercome customer

objections

Tell the product

story & focus oncustomer benefits

To ensure customersatisfaction & repeat

business


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Sales Organization

Organization structure defines relationshipamong jobs and amongst people in anorganization.

The aim is to make sure that the group ofindividuals strive jointly to reach qualitativeand quantitative objectives.


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Types of Sales Organization

Line

Line and Staff

Functional

By Specialization


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Line Organization

Advantages

Clear authority andresponsibility

Simple to understand

Quick Decision making

Low Cost

Disadvantages

Lack of specialization

Dependency on thehead.

Time consuming for thehead.

Deviation from planningand analysis function.


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Line and Staff Organization

Advantages

Better decisions due toassistance of specializedstaff.

Focus on planning by toplevel.

Better salesperformance.

Disadvantages

Higher cost.

Comparatively slowdecision making.

Possibility of conflictbetween line and staffpersonnel.


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Functional Organization

Advantages

High degree ofspecialization

Qualified specialist

guiding the sales force.

Disadvantages

Confusion among salespeople.

Problem in co-ordination.

Very Expensive


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By Specialization

Geographic

Product

Market/Customer


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Setting Sales Organization

Defining the objectives

Determining the necessary activities

Grouping activities into jobs

Assigning personnel to positions

Coordination & Control


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Quotas

Goals set by a company for its sales team for

a certain period of time.

It may be for a region, a branch, or an

individual sales person.

Can be set on sales volume, expenses, profitmargins or combination.


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Setting Sales Quota

Can be set based on

Territory Potential

Past Sales Experience

Total Market Estimates

Executive Judgement

Sales Persons estimates

Compensation Plan

585 be rural marketing 2

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