a peer reviewed international journal - icmrr.org mkt 2013.pdf · rural marketing in india –...

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SR. NO. P A R T I C U L A RS PAGE NO.

1.

RURAL MARKETING IN INDIA – PROSPECTS & PROBLEMS

PADMAAVATHY.PA S.BRINDHA

1-11

2.

COMMUNITY RADIO SERVICES IN INDIA: A SOCIETAL

PERSPECTIVE

MAHESH MOHAN Dr.R.JUBI

12-15

3.

A STUDY ON SUSTAINABILITY AND CUSTOMER SATISFACTION

Dr. SUSAN ABRAHAM

16-22

4.

E-MARKETING TO M-MARKETING: GROWTH AND DEVELOPMENT

JASPAL SINGH

23-33

5.

IMPACT OF SALES PERSONS ON THE SALES OF MOBILE PHONE

HEADSETS

DAVID WINSTER PRAVEENRAJ D Dr.J.ASHOK

MS. SUNITHA DIVAKAR

34-42

Volume 1, Issue 5 (July, 2013)

INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW

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A Peer Reviewed International Journal

IJMRR


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RURAL MARKETING IN INDIA – PROSPECTS & PROBLEMS

PADMAAVATHY.PA1 S.BRINDHA

2

1 Research Scholar, GRD Institute of Management, Dr.G.R.D.College of Science, Coimbatore.

2 Associate Professor, GRD Institute of Management, Dr.G.R.D.College of Science, Coimbatore.

ABSTRACT

Rural Marketing is defined as any marketing activity in which the one dominant participant is from a rural

area. This implies that rural marketing consists of marketing of inputs (products or services) to the rural as

well as marketing of outputs from the rural markets to other geographical areas. Rural marketing can be

defined as a function which manages all those activities in asserting, stimulating and converting the

purchasing power of rural people into an effective demand for specific products and services and there by

achieving the goals of the organisation. Rural marketing is promotion of a company’s products in the

rural markets by using strategies which differ from that of urban market. The rural market more price

sensitive but it has preference quantity.

Key words: Strategies, Factors, Rural Markets

INTRODUCTION

Marketing is the process used to determine what products or services may be of interest to customers, and

the strategy to use in sales, communications and business development. It generates the strategy that

underlies sales techniques, business communication, and business developments. It is an integrated

process through which companies build strong customer relationships and create value for their customers

and for themselves. It is a function which manages all the activities involved in assessing, stimulating and

converting the purchasing power to effective demand for a specific product and service. This moves them

to the rural areas to create satisfaction and uplift the standard of living.

Rural Marketing is defined as any marketing activity in which the one dominant participant is from a rural

area. This implies that rural marketing consists of marketing of inputs (products or services) to the rural as

well as marketing of outputs from the rural markets to other geographical areas. Rural areas of the country

or countryside are areas that are not urbanized, though when large areas are described country towns and


IJMRR


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smaller cities will be included. They have a low population density, and typically much of the land is

devoted to agriculture.

MARKETING STRATEGIES

Marketing strategies that worked for urban markets do not necessarily work for the rural ones. There are 7

differentiators identified in Why the rural market is different,

1. Intra community influences are relatively more important than inter-community ones. Word-of-mouth

in close knit communities is more powerful.

2. Scarcity of media bandwidth. Rural individual's access to media channels is limited and in the case of

broadband the comparable upload and download speed may be slower. Online shopping is seen as a

solution by many but will be dependent on broadband speed.

3. Slow to adopt brands. Slow to give them up. Rural consumers will be slower to pick up trends or

brands but will remain loyal when accepted.

4. Expenses are year long; income is seasonal. Many rural areas rely on seasonal tourism peaks when

income will be high and to a lesser extent agricultural incomes from seasonal crops. This means there will

be more disposable income at certain times with rural businesses and employees.

5. Information hungry; but entertainment starved. Isolation from entertainment centres has led to

companies trying edutainment to get their message across.

6. Higher receptivity to experience advertising. Retail outlets in rural areas have many demonstration

areas along with markets for tasting.

7. Commercially profitable; and socially acceptable. Brands with demonstrable local, rural, environmental

and/or social credibility stand a better chance.

Why Different Strategies?

Rural markets, as part of any economy, have untapped potential. There are several difficulties confronting

the effort to fully explore rural markets. The concept of rural markets in India is still in evolving shape,

and the sector poses a variety of challenges. Distribution costs and non-availability of retail outlets are

major problems faced by the marketers. The success of a brand in the Indian rural market is as

unpredictable as rain. Many brands, which should have been successful, have failed miserably. This is

because most firms try to extend marketing plans that they use in urban areas to the rural markets. The

unique consumption patterns, tastes, and needs of the rural consumers should be analyzed at the product

planning stage so that they match the needs of the rural people. Therefore, marketers need to understand

the social dynamics and attitude variations within each village though nationally it follows a consistent

pattern. The main problems in rural marketing are: -

Understanding the Rural Consumer

Poor Infrastructure

Physical Distribution

Channel Management

Promotion and Marketing Communication

Dynamics of rural markets differ from other market types, and similarly, rural marketing strategies a real

so significantly different from the marketing strategies aimed at an urban or industrial consumer.

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Strategies to be Followed:

Marketing Strategy

Marketers need to understand the psyche of the rural consumers and then act accordingly. Ruralmarketing

involves more intensive personal selling efforts compared to urban marketing. Firms should refrain from

designing goods for the urban markets and subsequently pushing them in the rural areas. To effectively

tap the rural market, a brand must associate it with the same things the rural folks do. This can be done by

utilizing the various rural folk media to reach them in their ownlanguage and in large numbers so that the

brand can be associated with the myriad rituals, celebrations, festivals, "melas", and other activities where

they assemble.

Distribution Strategy

One of the ways could be using company delivery van which can serve two purposes - it can take the

products to the customers in every nook and corner of the market, and it also enables the firm to establish

direct contact with them, and thereby facilitate sales promotion. However, only the bigwigs can adopt this

channel. The companies with relatively fewer resources can go in for syndicated distribution where a tie-

up between non-competitive marketers can be established to facilitate distribution. Annual "melas"

organized are quite popular and provide a very good platform for distribution because people visit them to

make several purchases. According to the Indian Market Research Bureau, around 8000 such melas are

held in rural India every year. Rural markets have the practice of fixing specific days in a week as Market

Days (often called "Haats') when exchange of goods and services are carried out. This is another potential

low cost distribution channel available to the marketers. Also, every region consisting of several villages

is generally served by one satellite town (termed as "Mandis" or Agri-markets) where people prefer to go

to buy their durable commodities. If marketing managers use these feeder towns, they will easily be able

to cover a large section of the rural population.

Promotional Strategy

Firms must be very careful in choosing the vehicle to be used for communication. Only 16% of the rural

population has access to a vernacular newspaper. So, the audio visuals must be planned to convey a right

message to the rural folk. The rich, traditional media forms like folk dances, puppet shows, etc., with

which the rural consumers are familiar and comfortable, can be used for high impact product campaigns.

HLL started 'Operation Bharat' to tap the rural markets. Under this operation, it passed out low-priced

sample packets of its toothpaste, fairness cream, Clinic plus shampoo, and Ponds cream to twenty million

households. ITC is setting up e-Choupals, which offers the farmers all the information, products and

services they need to enhance farm productivity, improve farm-gate price realization and cut transaction

costs. Farmers can access latest local and global information on weather, scientific farming practices as

well as market prices at the village itself through this web portal - all in Hindi. It also facilitates supply of

high quality farm inputs as well as purchase of commodities at their doorstep. BPCL introduced Rural

Marketing Vehicle (RMV) as their strategy for rural marketing. It moves from village to village and fills

cylinders on the spot for the rural customers. BPCL considered low-income of rural population, and

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therefore introduced a smaller size cylinder to reduce both the initial deposit cost as well as the recurring

refill cost.

RURAL MARKETING

Rural marketing can be defined as a function which manages all those activities in asserting, stimulating

and converting the purchasing power of rural people into an effective demand for specific products and

services and there by achieving the goals of the organisation.

RURAL AREAS

Rural areas are large and isolated areas of an open country with low population density a country side

refers to rural areas that are open.

Meaning of Rural Marketing:-

Rural marketing is promotion of a company’s products in the rural markets by using strategies which

differ from that of urban market. The rural market more price sensitive but it has preference quantity.

Nature of Rural market:-

1. Large, diverse and scattered market:-

Rural marketing in India is large, and scattered into a number of regions. There may be less number of

shops available to market products.

2. Major income of rural consumers is from agriculture:-

Rural prosperity is tied with agriculture prosperity. In the event of crop failure, the incomes of masses is

directly affected.

3. Traditional outlook:-

Villages develop slowly and have a traditional outlook. Change is a continuous process but rural people

accept change gradually. This is gradually changing due to literacy especially in the youth who have

begun to change the outlook in the villages.

4. Standard of living and rising disposable income of the rural customers:-

It is known that majority of the rural population lives below poverty line and has low literacy rate, low

savings etc. Today the rural customers spends money to get value and is aware of the happening around

him.

5. Rising literary levels:-

It is documented that approximately 45% of rural Indians are literate. Hence awareness has increase and

the formats are well informed about the world around them. They are also educating themselves on the

new technology for a better life style.

6. Diverse socio economic background:-

Due to differences in geographical areas and uneven land fertility, rural people have different socio

economic background, which ultimately affects the rural markets.

7. Infrastructure facilities:-

The infrastructure facilities like warehouses, communications systems and financial facilities (or)

inadequate in rural areas physical distribution is a challenge to marketers who has found innovative ways

to market their products.

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SCOPE OF RURAL MARKETING

1. Large population:-

According to 2013 census, rural population is 72% of total population and it is scattered over a wide

range of geographic area.

2. Rising rural prosperity:-

Average income level has unproved due to modern farming practices, contract farming industrialisation,

migration to urban areas etc.

3. Growth in consumption:-

There is a growth in purchasing power of rural consumers. The average per capita house hold expenditure

is 382 Rs

4. Change in life style:-

Life style of rural consumer changed considerably.

5. Market growth rate higher than urban:-

The growth rate of fast moving consumer goods [FMCG] market and durable market is high in rural

areas. The rural market share is more than 50% for products like cooking oil, hair oil etc.

6. Life cycle advantage:-

The products which have attain the maturity stage in urban market is still in growth stage in rural market.

7. Rural marketing is not expensive:-

To promote consumer durable inside a state costs 1 crore Rs while in urban areas it will costs in millions.

MEANING OF RURAL MARKET

On account of green revolution, the rural areas are consuming a large quality of industrial and urban

manufactured products. In this context a special marketing strategy namely rural marketing has emerged.

But often rural marketing is confused with agricultural marketing – The letter denotes marketing of

produce of rural areas to the urban consumers or industrial consumers, were as rural marketing involves

delivering manufactured or processed inputs or services to rural producers of consumers.

Importance of rural market:-

1. Large market:-

Approximately 75% of Indian’s population resides around 6,38,365 villages of India spread over

32,00,000 Sq. kilometre 41% of Indian’s middle class resides in rural areas. The Indian rural consumer

leaves in 6,00,000 villages across the country and they account for over 70% of population of the country.

For several product categories, rural markets account for over 60% of the national demand.

2. Higher purchasing capacity:-

According to “NCAER”[National Council for Applied Economic Research]. As per NCAER study there

are many middle income and above households in the rural areas. As there are in the urban areas there are

almost twice as many lower middle income households in rural areas as in the urban areas. Because of

this purchasing power of rural people is on rise.

3. Market growth:-

“Hariyali kissan bajar” was set up by sri ram consolidated limited to facilitates scale of agriculture inputs

such as fertilizers, pesticides forming equipment, seeds etc. Shakti- though the state governments and

NGO’S involved in microfinance women entrepreneurs in villages are identified to act as local

distribution and sales point for HUL products.

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4. ITC:-

Itc’s internet enabled rural interface to help scale of agricultural outputs is presently operational in 6 states

market is growing at a rate of 3-4% p.a.

Differences between rural marketing & urban marketing:-

Although rural marketing offer immense potential marketers used to recognise the fact that there are

considerable differences in many aspects including the nature, characteristics, buying patterns &

behaviours of rural consumer when compared with their urban counter parts. While the urban economy

thrives mainly on secondary and territory activities such as manufacturing &service, the rural economy is

driven mainly by primary activities such as agriculture, fishing & forestry. The consumer demand and

consumption patterns also differ across rural and urban areas, in many products rural consumption now

accounts for a large share then urban. In in washing soaps the rural share is over 60%. In popular both

soaps it is more than 50% and in batteries it is more than 56% similarly is the case with packed tea & hair

oil’s. Rural marketing is similar as simply marketing. Rural marketing differs only in terms of buyers

here, target market consists of customers living in rural areas. Thus rural marketing is application of

marketing fundamentals {concepts, principles, theories etc} to rural marketers.

Problems of rural marketing

The problems of rural marketing are continuing in spite of efforts to improve in a 9th five year plan. The

position is improving but slowly the rural marketer has many challenges. But the vast & expanding

markets call for good marketing strangers to create win situations to all parties in the chain of rural

marketing.

The problems of rural marketing are as follows:-

� Under developed people

� Under developed market

� Improper communication facilities

� Many languages

� Vastness & uneven spread

� Low per capita income

� Poor infrastructure facilities

� Seasonal demand

� Less distribution channel

1. Under developed people:-Rural society is found by tradition, old customs, practices etc. The impact of

modern science & technology has made very less impact of the old beliefs are still continuing.

2. Under developed market:-Rural markets are not developing because of inadequate banking & credit

facilities. Rural market needs banks to enable remittance, to transact on credit basis and to obtained credit

support from the bank. At present every 48th village in India only has bank.

3. Poor or improper communication facilities:- Most villages even today largely depends on telegrams

and phones for their communication needs print media and visual media[Television cinema] etc reaches

only about 20% of rural Indians.

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4. Many languages:- India is a country of many languages. Language becomes a barrier in effective

communication in the marketing efforts. The languages vary from state to state, place to place, district to

district there are now 18 schedule national languages.

5. Vastness & unevenly spread:- India is a vast time & major approximately 3214km from North to

South & 2933 km from East to West. Rural market consists of approximately 75 cores rural consumers

spread across approximately 6,38,365 villages. Despite the urban migration, the rural areas continue to be

the place of living for a vast majority Indians.

6. Low per capital income:-Most farmers has small lands and many villages are brought prone, this

result in low per capita income. Low per capita income Results in low consumption pattern as compared

to the urban population. The marketers faces challenges in rural marketing to decide about quantities,

frequency of distributions, package size etc. due to the low per capita income of the rural people.

7. Poor infrastructure facilities:- Infrastructural facilities like roads, ware houses, powers etc. are

inadequate in rural areas. Infrastructural cost are very high and impact adversely in the rural market

activities.

8. Seasonal demand:- Rural economic is seasonal, rural people have two seasonal namely khariff & rabi.

Villages have money mostly in this seasons. As village income are seasonal demands are also.

Rural marketing environment An environment is that which surrounds an organization. It was sum total

of externalfactors and made up of tangible and intangible factors /both controllable and uncontrollable.

Rural marketing is basically focused marketing activity of a organization. The environmentout lines

threats and opportunities of the market. The Rural marketing environment is complex and is changing

continuously. The marketing organization should foresee and adopt strategies to change in requirements

in the market. One which doesn’t change perishes. An adaptive organization can stand competition or

have a modest growth. An organization which makes its effective marketing plans and its own strategies

or a creative one will prosper and creates opportunities in the change in environment. Rural marketing

environment changes will be in the area of

a) Social changes

b) Economic changes

c) Ethical changes

d) Political changes

e) Physical changes

f) Technological changes

1. SOCIAL CHANGES:

The social factor consists of three factors,

a) Sociological factor:-Consumer society or the community is important. The consumer life style is

influenced by the social setup. The social constitution and changes influence customer habits, taste, and

lifestyles.

b) Anthropological factors:-The reasonable cultures and subcultures and living patterns influence

advertising sales promotion, selling strategies and packing. The consumers in east India have different

taste.

c) Psychological factors:-Consumer behavior attitudes personality and mental make ups are unique. The

study of behavior is vital to evolve marketing mix.

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2. Economic factors:-

a) Competition:-A good and healthy competition brings in good and overall improvement in economic

activities. It also brings good quality, good quantity and price.

b) Consumers:-The consumer today is quite knowledgeable and choosy. His progress and well being

should be the aim of any economic activity.

c) Price:- Pricing is a delicate issue where it should be market friendly, not too high or to little. The

marketers has to keep in mind to get descent returns on investment and effects of producers and

marketers.

3) Ethical forces:- Business minus ethical values brings degeneration. In the long run it brings problems.

No standardization, exploitation and falsification are main ethical values in such organization.

4) Political forces:-The government polices towards trade and commerce, internal taxation and

preferential treatments have a influence on the marketing strategies. The marketing environment has to

meet the political frame work in which a government is made to work.

5) Physical forces:-The infrastructure availability for movement and storage of goods play an important

role in the physical distribution of goods and reaching the consumers. Efficient and cheaper logistics

helps the market in a big way.

6) Technological force:-The fast changing science and technology gives a cutting edge to the marketing

of products. The changes warrant changes in marketing, inputs and strategies. Faster and efficient

communication and transport systems have speeded up marketer. The capital is made to work faster and

harder .So in the case with the marketer, He has to use these new marketing tools and facilities in

designing and implementing his marketing strategies which are adaptive to the change in environment and

ensure success.

Factors influencing rural consumer behavior

The various factors that affect buying behaviour of in rural India are:

1) Environment of the consumer:- the environment or the surroundings in which the consumer leaves

has a very strong influence on the buyer behavior. E.g.:- electrification, water supply effects demand for

durables.

2) Geographic influence:- the geographic location in which the rural consumer is located also speaks

about the thought process of the consumer. For instance, villages in south India accept technology quicker

than in other parts of india.Thus, HMT sells more winding watches in the north while they sell more

quartz watches in the south.

3) Influence of occupation:- The land owners and service can buy more of category2 & category3

durables than agricultural laborers.

4) Place of purchase:- Company’s need to access the influence of retailer on both consumers at village

shops.

5) Creative use of product:- The study of product and provides indicators to the company on the need

for education and also for new product ideas.

6) Brand preference and loyalty:- the people in rural market will not give preference for brand products

but they give importance for loyalty of the product.

FACTORS INFLUENCING OR CONTRIBUTING CONSUMER BEHAVIOUR:-

a) Environmental

b) Cultural

c) Social

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d) Personal

e) Psychological

a) Environmental :-

I. Economic factors:- The agricultural and rural development has enabled our country to achieve self

sufficiency in food production and we are now exporting a variety of agricultural commodities to foreign

countries. Favorable monsoons during the last 10 years have let to increase in crop yields and rural

income. In addition, diversification of a agriculture, development of village industries, migration of rural

people into cities, remittance of money, family members settled abroad have increased income level and

buying power of villagers.

II. Political factors:- The government have taken initiative for economic development of rural areas and

have invested heavily in agriculture, irrigation, electricity, khadi and village industries and infra structure

facilities such as roads, communication, hospitals, school, and banking. The initiatives certainly let to

rural prosperity and opportunities for the marketers.

III. Technological development:- The rapid expansion of telecommunication facilities and mobile phone

has provided opportunities for rural people to keep in touch with men and markets. Development of TV

networks and reasonable channels has enabled the marketers to pass on message about product and

services to rural people. In rural areas especially in large villagers and villagers near to towns and cities,

children and youth have accused to information such as job opportunities, national news, weather

conditions, bank loans etc..IT and internet are sure to spread up exchange of information in rural India

though at a slower rate compare to urbanmarket

IV. Legal :-The government has come out with legislative measures to protect the interest of consumers

some of the important ones are:-

a. Money lenders:-The money lenders advance long term loans against security of land over period of

time manipulate the records and seize the land. The government protects the assets of farmers from

money lenders.

b. Consumer protection act:-

Consumer protection act provides protecting the rights and interest of consumers and we have a quasi

judicial machinery operating at 3 levels i.e. district forum, state and national forum.

V. Cultural factors:-

a) Culture and sub culture :- Culture represents an overall heritage a distinctive form of environmental

adaption by whole society of people culture is a system of shared beliefs and customs that influence the

behavior of consumers. Traditional life, traditional occupation, traditional beliefs are the features of rural

life. Culture provides people with a sense of identity and an acceptable behavior with in a society.

Technological advances education and travel have considerable influence on culture and change the rural

life style. Culture offers direction and guidance to the members of a society in all facets of life. It provides

methods of satisfying physiological, personal and social needs.

b) Sub culture:- It exists within the dominant culture, with its own set of values, beliefs and attitudes and

behavior pattern. The pattern of behavior would vary between north and south even in rural areas.

c) Social class:-Consumer behavior is determine by social class to which they belong and is determine by

a combination of factors like education, occupation, income and assets. It is seen that over a period of

10years there has been considerable reduction in the per culture of destitute and increase in other social

classes in rural areas. This is a positive indication of the growing rural market in our country.

VI. Social factors:-

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a) Family:-Family is a group of persons related by blood, marriage or adoption who reside together. It is

basic social group and consists of individual known as members. The 3rd generation family is very

common in rural areas. The head of the family provides economic security to family members. The

members of family play different roles such as influencer, decider and purchaser is the buying process.

Personal values, attitudes and buying habits have been shaped by family influences. Family life cycle also

influences.

b) Reference group:- It includes family and friends with whom an individual interacts on a face to face

basis. Word of mouth communication is a process by which the messages are passed within group from

one member to another member. The consumer develops positive opinion towards a product or service

based on admiration (cricket players), aspiration (film stars) or empathy.

VII. Personal factors:-

a) Age and life cycle:-Life cycle of a person began with child birth, move to infancy, teenage, adult,

middle age, old, and then ends with death. Under each stage buying behavior is different.

b) Occupation:- About 500 millions of population depends upon agriculture for a living. Income from

agriculture is a seasonal and therefore demand particularly consumer durables is high during post

harvested period and festivals. Many farmers have diversified into fish culture and small scale industries

in order to reduce their dependence on forming and to ensure regular income. This leads to increase the

demand for consumer durables.

c) Economic circumstance:-- Rural income is seasonal compare to an urban consumer who receives

regular income regarding saving habits, traditionally rural people prefer to invest in jewelry and fixed

deposits in banks and posts offices. A farmer would like to invest these funds for development of

agriculture and buying lands. Another interesting observation is that for the same income level, a rural

consumer has relatively high disposable income.

d) Life style:- Life style studies how people spend their money and time in day to day activities. The life

style dimensions are activities and demographic features such as age, gender, occupation, education, and

income. Rural consumes prefer to spend, spare time, in activities. Such as visiting meals i.e. commodity

and religious fairs, company’s can use such meeting places for product promotion.

e) Personality and self concept:-Personality is a unique combination of different individual

characteristics. We find that many individuals are similar in terms of one or more characteristics, but they

are not alike in all characteristics. Personality is a combination of factors such as sociability, self

confidence and dominance. Personality influences in many ways.

VIII. Psychological factors:-

a) Motivation:- When a buyer purchases a product or service, he has a reason. Motive is a strong felling,

desire or emotion that makes the buyer to take decision to buy every human activity is a result of

motivation. Each person is motivated by his needs and satisfaction of one need shows that rural

consumers are satisfied by meeting the needs i.e. physical and security need, where as urban consumers

would like to satisfy social and needs .Motives can be also classified as psychological and psychogenic

motives. In rural areas there exits large population consisting of agricultural laborer, small and marginal

farmers, petty traders who have very limited income and their needs are very basic i.e. food clothing and

shelter.

b) Perception:- All consumers are not alike; they see the world in their own special ways. For instance,

all the members of the family have viewed a particular advertisement in different ways. This is because

needs, wants, values attitudes and personal experience vary from person to person. Similarly, consumer’s

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perception means what he thinks about the product, producer or the brand. Consumer’s action, buying

habits, consumption habits are based on perception and therefore the motor should have good

understanding of perception of consumers.

c) Learning:- It is a process of acquiring knowledge about products, product benefits, method of usage

and maintenance and also disposal of the products considering low literacy, low awareness, the marketers

have to educate the consumers through rural- specific promotion media and methods.

d) Beliefs and attitudes:- In general attitude is a state of mind or feeling. Attitude indicates our feeling

about a product, service, brand and shop whether we are positively or negatively disposed towards the

object or class of objects. Consumer attitudes or composed of beliefs, feelings and behavior intentions

towards a product, brand or store. Belief may be positive, negative or neutral. The belief that consumer

hold need not be correct. Consumers also hold certain feelings towards product and these feelings are

based on the beliefs.

CONCLUSION

Thus, looking at the challenges and the opportunities, which rural markets offer to the marketers, it can be

said that the future is very promising for those who can understand the dynamics of rural markets and

exploit them to their best advantage. A radical change in attitudes of marketers towards the vibrant and

burgeoning rural markets is called for, so they can successfully impress on the 230million rural

consumers spread over approximately six hundred thousand villages in rural India.

BIBLIOGRAPHY

BOOKS

C G Krishnamacharyulu, Lalitha Ramakrishnan, Rural Marketing, Pearson, 2012.

Habeeb Ur Rahman HPH, 1/e, 2004

Pradeep Kashyap, Rural Marketing, 2nd

edition, Pearson, 2012.

Richard Kohls and Joseph N. Marketing of Agricultural Products, Oxford, 2007.

SukhpalSingh,RuralMarketing,VikasPublishers

Tej K Bhatia , Advertising & Marketing in Rural India, 2nd

Edition, Macmillan Publishers, 2007.

WEBSITES

http://en.wikipedia.org/wiki/Rural_marketing

http://en.wikipedia.org/w/index.php?title=Rural_marketing&oldid=547939071

http://www.coolavenues.com/marketing-zone/rural-marketing:-challenges..

JOURNALS

Rural Marketing: Marketing to the Rural, Poor or Disadvantaged Consumers , International

Journal of Rural Management October 1, 2011 7: 83-102.

Holistic Rural Marketing International Journal of Rural Management April 1, 2012 8: 121-132

http://en.wikipedia.org/wiki/Rural_marketing

http://en.wikipedia.org/w/index.php?title=Rural_marketing&oldid=547939071

http://www.coolavenues.com/marketing-zone/rural-marketing:-challenges

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COMMUNITY RADIO SERVICES IN INDIA: A SOCIETAL PERSPECTIVE

MAHESH MOHAN1 Dr.R.JUBI

2

1Research Scholar, Karpagam University, Coimbatore

2Director, MarThoma Institute of Information Technology,Ayur, Kollam, Kerala

ABSTRACT

Community Radio Services introduced in our country is a staunch step towards the setting up of an

effective platform for the communication of content aimed at the social upliftment of the local community

and creating awareness among them on various essential living parameters around them. CR effectiveness

could be directly proporational to the societal awareness on parameters of the civic importance if CR is

well structured by the policies laid down by Government and monitoring bodies as CEMCA. Community

Radio drafted need to be sustainable binding the parameters of societal importance from all perspectives.

Key words: Community Radio, local community, Audience Measurement.

INTRODUCTION

Community Radio Services introduced in our country is a staunch step towards the setting up of an

effective platform for the communication of content aimed at the social upliftment of the local community

and creating awareness among them on various essential living parameters around them. An analysis of

the CR stations in India will clearly give as the essential points to be noted so that the monitoring of the

designed purpose of the communication format is met.They key focus area of the CR is to define the STP

and effective positioning of the content through activations with sustainability in its ideals at every step

enabling the projected CR aims.

Key focus areas

Primary target has to be local community

Civic aspects of the region need to be given priority

Interactiveness among the community and the CR functionaries on challenges

Participation of the local community on the CR

Audience Measurement at every step and an authorized measurement annually

Sustainability of the project among the listeners


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Societal roles by various CR (Selected national CRs)

(Soured from Compedium 2011- CEMCA)

Deccan Radio @ 107. 8 MHZ

The CRS is having the major focus for the social upliftment through various conventional and innovative

programmes. This is more focused on the slum areas of Old Hyderabad city. Programmes are knitted

around various verticals. Pls find few below:

Education and literacy

Public Health and Hygiene,

Social Issues

Environmental and Ecological issues

Micro Finance

Recruitment Programmes

Sports Informations

Other current happenings in the area.

All the happenings of the project is routed towards the promotion of Hyderabadi culture which is one of

the elegant across the country. They have interactive phone- in programmes, language programmes,

experience based programmes and a lot, better marketed through SMS services. They are efficiently

running with ideals of CR.

Delhi University CR @ 90.4 MHz

CRS from the School of Open learning Delhi University which is having a large canvass to its credit on

the projects implemented. They extend to various verticals. Pls find few major areas:

Music, literature

Motivational speeches

Health programmes

Filmworld updates

Different interactive programmes

They have also an innovative format of need based content development specifically giving importance to

the happenings of DU. The informations of the DU are gven in different formats at all levels.

Micavaani CR @ 90.4 MHz

A well structured CRS with effective programming and more research findings drawing conclusions from

their local community funded by the prestigious MICA (Mudra Institute of Communication,

Ahemedabad). The programmes followed by relevant audience measurements make the system bring out

right results for the Community Radio. Few of the findings officially published by the last survey include:

1) Average age of marriage of girls among the local dwellers is 12-13 while it is 17-19 for boys.

2) Youth is not clear about the options of higher education and thus prefer not to study.

3) Parents are vary of sending their kids outside the village hence most of the village kids study

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only in the village school which offers only till 8th standard.

Community Radio Services in Kerala scenario

Benziger CR @ 107.8 MHz

The Community Radio Benziger has been working for safeguarding rights, promotion and development

of marginalized communities of Kollam. The Community Radio Benziger has undertaken the

responsibility to sustain community radio movement for increasing people’s awareness about alternative

ways of communication and access to information, stimulating democratic participation, protecting public

interest, respecting human rights and promoting good governance. Community Radio Benziger’s

programmes function as an integrating tool making people appreciate the way of life of other people and

to develop tolerance between each other enriching the societal harmony. Social participations presented

through discussions and debates help the community to be better informed and interested in public issues.

They uplift the local culture in turn creating a paradigm shift in the local community.

Radio DC @ 90.4 MHz

CRS focus majorly on the community, primarily women and children of the fisher-folk community. The

programmes by the CRS are well designed for the focused platform. Development projects to the target

community have various societal impacts where the local talents are also incorporated. Radio Alaikal – A

series of programmes based on fishing community and with participation from a local fishing community

has its impacts on the listenership of the CRS. Educational institutions from the target area are invited for

presenting various programmes on education, cultural and entertainment. School students are brought to

the station and programmes which include maths, puzzles, quiz and lot other progrmmes are recorded.

Other topics that are discussed in this segment include computer technology, IT, research developments in

various phases. Radio DC endeavors to maintain proximity to the community by airing programmes

based on the topic related to the civic and cultural activities and of immediate relevance to the local

community.

Radio Macfast @ 90.4 MHz

Radio Macfast a unique initiative, which envisions bridging the knowledge gap, is looking forward to

valuable contributions to make this a highly successful venture within a short span of time. People from

all walks of life participate and contribute towards its efforts to bridge knowledge gap by production of

programmes, letting know people’s expectations, forwarding suggestions, voluntary work as reporter,

script writer, promotion of radio literacy in a new place and contributions to the charities.

Radio Mattoli @ 90.4 MHz

CRS focusin on the local tribal community has various unique programmes for their upliftment and

upgradation of their lifestyle to the societal basic standards. Clubs by the CR open up avenues for school

children to express their concerns, hopes, aspirations and talents. Jan Vani programmes help the neglected

and the victims heard aloud and compel the duty bearers for interventions. Daily broadcasts on historic

importance of the day (Dina Vrithantham) and special programmes on national and international

commemoration days/weeks are widely listened by the commuity. Letter Box is a fortnightly episode that

broadcasts feedbacks received from listeners. Vanitha Mattoli is a programme of women prepared by

women from local community. There is a daily programme in indigenous dialects prepared and

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broadcasted by Adivasi volunteers themselves. Cultural diversity and rich experiences of Adivasis are

given prominence in this.

Conclusion

CR effectiveness could be directly proportional to the societal awareness on parameters of the civic

importance if CR is well structured by the policies laid down by Government and monitoring bodies as

CEMCA. Community Radio drafted need to be sustainable binding the parameters of societal importance

from all perspectives.

References:

Edited by Alessandro Bazzi, ISBN 978-953-307-091-9, Hard cover, 712 pages, Publisher:

InTech, Chapters published April 01, 2010 under CC BY-NC-SA 3.0 license

Practical wireless telegraphy: A complete text book for students of radio communication (c1917).

Websites:

http://www.communityradiotoolkit.net

mib.nic.in/writereaddata/html

www.communityradioindia .org/

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http://creativecommons.org/licenses/by-nc-sa/3.0/

http://www.communityradiotoolkit.net/

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A STUDY ON SUSTAINABILITY AND CUSTOMER SATISFACTION

Dr. SUSAN ABRAHAM

Associate Professor, SCMS School of Technology and Management, SCMS Campus, Muttom,

Aluva - 683106- Kerala

ABSTRACT

In recent years, a key global challenge faced by the human race is to address climate change and

reduce green house emissions. As many of the environmental protection strategies are short term in

nature, it becomes essential to have a long term perspective to save the resources today for the future

generations. Business organisations have now adopted various measures under the term „green

initiatives‟. Beyond the marketing efforts, when a business considers economics, ecology and equity in

decisions, it becomes a sustainable one. The advantages earned by such sustainable organisations are

enhanced reputation, cost savings, tax deductions and improved employee morale.

This article attempts to describe the sustainability efforts of a company making carpet tiles with

operations in America, Europe, Asia Pacific and, Middle-east and Africa. The objective of this article is to

know the impact of the sustainability efforts of the organisation on customer satisfaction. Primary data

was collected from 23 engineers of the clients of the organisation using a questionnaire and secondary

data was collected from the organisation. Results showed that the customers valued the sustainability

efforts of the organisation and they preferred to buy their products in comparison to the competitors.

Correlation results showed that there was moderate relationship between sustainability and customer

satisfaction. Implications of the study indicate that the organisation has to enhance its efforts to educate

the prospective customers about the certification of its processes and advantages of its products and

services.

Key words: Sustainability, Customer satisfaction, Carpet tiles manufacturing, Engineers, Correlation.

INTRODUCTION:

Business organisations have realized the need to be socially responsible. Corporate Social Responsibility

(CSR) or corporate sustainability refers to the balanced integration of social and environmental

considerations in business strategy and operations. It is about maintaining economic success and

achieving commercial advantage by building reputation and gaining the trust of people that work with or

live around the company (Strandberg Consulting, 2009).


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The issue of sustainability has gained importance due to legislation on pollution and environmental

protection, investors and NGOs insisting on CSR performance indices and, the need to develop

competitive advantage and brand reputation in the market (India 2011: Key sustainability drivers for

Indian corporate).

A sustainable business operates in an environmentally responsible way. Its products and business

processes do not have a negative environmental impact as a result of their existence. Daft (2008) defines a

sustainable business as an economic development that generates wealth and meets the needs of the current

generation while saving the environment for future generations. These companies aim to reduce their

environmental footprint through initiatives such as reducing on waste generation and unethical

environmental practices. A sustainable business enjoys better reputation, improved employee morale, cost

savings and benefits to the environment.

A report published by WWF and CII highlights sustainability practices of five Indian companies. Among

these, ITC‟s efforts in scaling up internal processes and market initiatives as drivers for sustainability has

led to the company gaining sustainability benefits across SBUs due to integrated material and competence

flows. Also, L&T has identified sustainability driven opportunities and has technology, products and

services delivery in place.

THE STUDY ORGANISATION AND THE PURPOSE OF THE STUDY:

The organization taken for the study is the undisputed world leader in carpet tiles with operations in

America, Europe, Asia Pacific and, Middle East and Africa. In the mid-1990s, the organisation shifted its

strategy to redirect its industrial practices to include a focus on sustainability without sacrificing its

business goals. Presently, the organisation is simultaneously pursuing sustainability on three paths –

innovative solutions for reducing environmental footprint, new ways to design and make products and an

inspired and engaged culture. It has third–party Environmental Product Declaration (EPDs) on its

products.

The present study is focused on the organisation‟s residential product division located at Bangalore. This

division designs and markets an innovative system of 50cm carpet squares in various colours and patterns

that can be customized according to the customer‟s requirements. The products are manufactured in

sustainably focused facilities. In the wake of increased sales over a period, the management wanted to

know the awareness level about its sustainability efforts and the acceptance of its products among the

customers.

OBJECTIVES OF THE STUDY:

1. To know the importance of sustainability and its influence on product purchase decision making among

the customers.

2. To know the satisfaction of customers with the sustainably focused carpet tiles manufactured by the

organisation.

3. To ascertain the relationship between sustainability and customer satisfaction.

METHODOLOGY:

The aim of the study is to know the relationship between sustainability and customer satisfaction with the

organisation‟s residential product. The period of the study was January 2013. For this purpose, a

questionnaire was designed with the assistance of the company management. The questions were closed

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ended and data was collected using survey method. Primary data was collected from 23 engineers

(considered as customers for this study) of the clients of the organisation and secondary data was

collected from the organisation manuals and other research journals. The respondents to the study were

selected using Convenience sampling technique. The data was analysed using descriptors, percentages

and correlation. Implications and future research directions are also stated at the end of the paper.

LIMITATION:

The number of engineers who provided the data was limited by the clients as they were widely dispersed

on project sites.

REVIEW OF LITERATURE

A few studies are reported here to support the relationship between Sustainability and customer

satisfaction. An 11-year study of corporations by Harvard University, which emphasized stakeholder

management, found socially responsible and sustainable corporations had sales growth 4 times and

employment growth 8 times that of “shareholder first” companies (KPMG, 2001) Among the various

sustainability drivers that made various companies opt for strategic sustainability measures, the most

influencing factor was Customer requests or Preferences. (KPMG, 2010) A study used longitudinal data

to find the link between CSR and firm market value. Data were taken on Fortune 500 companies from

2001-2004 This study looked at how customer satisfaction provided the link between CSR and market

value. The results stated that when firms are innovative and have good product quality, CSR improves

customer satisfaction, increasing financial returns. A firm‟s CSR, coupled with innovation and quality,

make customers feel connected to it, which leads to customer loyalty (Luo and Bhattacharya, 2006) Many

Authors believe that customers have a high level of involvement regarding environmental issues as a

consequence of growing environmental consciousness. [Kinnear, 1974, Cope, 1991, Hopfenbeck, 1993,

[Swenson and Wells, 1997]. Studies have shown the significant influence of environmental knowledge

and consciousness on consumer environmental attitude [Hines et al., 1987, Stone et al, 1995].

Consequently, companies that communicate their „green product‟ in their packaging, advertisement or

manufacturing process, gain satisfied customers.

The above paragraphs point to an important aspect that corporate sustainability has become an essential

determinant in customer satisfaction.

ANALYSIS AND INTERPRETATION:

The primary data collected has been analysed and the results have been presented below.

Table 1: Table showing the importance of sustainability among the respondents

Factors Mean score (% of respondents)

Importance of sustainability 4.30 (96%)

Importance of sustainability related certification 3.74 (68%)

Importance of being part of a sustainable supply chain 4.17 (77%)

Top management encourages socially responsible buying (on a scale of 2) 1.91(91%)

Importance of sustainability in increasing the goodwill of customers 4.00 (82%)

Willingness to pay more for a sustainable product (on a scale of 3) 2.39 (42%)

Importance of Life Cycle Analysis 3.96 (66%)

Source: Primary data

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The above table 1 shows that 96% of the respondents (M = 4.30) opined that sustainability is important in

any business, implying that they supported the cause and efforts towards sustainability in any business

The certification of the business for its conformance to standards of sustainability is expected and valued

by the customers (M = 3.74) They value the sustainability of their suppliers as well as their customers (M

= 4.17). It is also necessary to have support from top management in socially responsible buying which is

one of the most important factors influencing the purchase decision and also an important source of

support to a sustainable supplier (Mean = 1.91). The respondents also opined that sustainability is an

important factor in increasing the goodwill of customers (M = 4.00). The customers of the clients are

willing to pay more for a sustainable product, implying that they perceive some utility in the sustainability

of the product (M = 2.39). At the same tome 58% of the respondents opined that they cannot make the

decision as it depends on the willingness of their customers and; these respondents do not make the

financial decision. Life Cycle Analysis LCA) of the product is important for the respondents (M = 3.96).

They are of the opinion that such a written form of LCA should be given for every product so that the

customers know exactly the effect the product has on the environment and society.

Table 2: Table showing sustainability factors that have an influence on purchase decision making of

the respondents

Sustainability factors influencing purchase decision making Mean score (Percentage of

respondents)

Life cycle analysis of the product 3.91 (73%)

Importance of sustainability of the product purchased 3.83 (77%)

Importance of sustainability efforts of the company 3.74 (72%)

Importance of Carpet Take back program as an offering by the company 3.52 (60%)


Among the factors that influence purchase decision, importance given by the organisation to LCA is the

most important one (M = 3.91), followed by sustainability of the product purchased (M = 3.83),

sustainability efforts in manufacturing (M = 3.74) and carpet take back program (M = 3.52) (Table 2).

Table 3: Table showing the satisfaction of the respondents with the sustainably focused carpet tiles

manufactured by the organisation.

Satisfaction of the respondents with the sustainably focused carpet tiles Mean score (percentage

of respondents)

Satisfaction derived from the sustainability efforts of the company 4.04 (76%)

Satisfaction from provision of tac-tiles 4.57 (81%)

Level of the quality of products and services 4.61 (94%)

Products and services increased the sustainability of customers (on a scale of 3) 1.78 (92%)

Products helped in increasing the market share (on a scale of 3) 1.70 (42%)

Products and services of the organisation helped in increasing the customer

goodwill (on a scale of 3) 1.83 (73%)

Sustainability efforts of the organisation helped in increasing the customer

goodwill (on a scale of 3) 1.96 (46%)


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According to the above table 3, 76% of the respondents are satisfied by the sustainability efforts of the

organisation (M = 4.04). Those who have purchased the products of the company are satisfied with the

quality maintained by the organisation. This is evident in 81% of the respondents (M = 4.57) being

satisfied with the provision of Tac-tiles. Tac-tiles are innovative products to facilitate lesser use of

Volatile Organic Compound (VOC) emitting glue usually used by the customer community. This

satisfaction shows the acceptance of the innovation by the customer community. This high rating shows

that the organisation‟s product is one of the best products available in the market presently (M = 4.61).

Among the benefits that the respondents rated, 46% of the respondents opined that the sustainability effort

of the organisation increased the customer goodwill of its customers (M = 1.96). This was followed by

73% of the respondents (M = 1.83) opined that the Product and Services of the organisation did help in

increasing the customer goodwill of its customers. The products and services of the organisation have

increased the sustainability of the respondents‟ customers (M = 1.78), but the products did not have much

contribution in increasing their market share (M = 1.70).

CORRELATION ANALYSIS

The third objective of the present study is to find out the correlation between sustainability and customer

satisfaction.

The hypothesis is as follows:

Ho: - There is no correlation between sustainability and customer satisfaction

Ha: - There is correlation between sustainability and customer satisfaction

Table 4: Table showing correlation between sustainability and customer satisfaction

Customer Satisfaction

With sustainability efforts of the

organisation

With benefits of sustainable

products made by the

organisation

Pearson‟s „r‟ Sig Pearson‟s „r‟ Sig

Sustainability 0.690** (0.000) 0.665** (0.000)

**Correlation is significant at 0.01 level (2-tailed)


The above table 4 shows the correlation between sustainability and customer satisfaction. Customer

satisfaction is explained with sustainable efforts and benefits from purchasing sustainable products of the

organisation. Satisfaction with sustainable efforts of the organisation has 69% relationship with the

overall score of sustainability and satisfaction with benefits had 66.5% relationship with sustainability. As

the p – value is less than 0.01, the null hypothesis is rejected and the alternate hypothesis is accepted.

FINDINGS

The results revealed that sustainability consciousness has been increasing among the customers

and that sustainability of the organisation as well as the sustainability of the products increased the

goodwill of the customers was supported by the fact that customers preferred sustainable products. The

customers also preferred authorised and authentic Life Cycle Analysis of the product they were

purchasing.

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The sustainability efforts of the supplier company was closely watched by the customers as they

were aware of the efforts of the organisation and had opinions and suggestions. The customers derived

satisfaction from the sustainability of the product as they preferred a sustainable product than a product

that did not have any credentials on that respect. Also, it has been found that the customers derived

satisfaction from the sustainability efforts of the organisation besides the sustainability in the products

that they purchased. The customers also referred the products to their customers because of the products

sustainability attributes.

It has been found that there is a positive correlation between sustainability and customer

satisfaction which shows that the sustainability of the company influences the customer satisfaction of the

organisation`s customers. This positive correlation was further supported by the fact that majority of the

customers associated some utility with the sustainability of the product since they were willing to pay

more for a sustainable product.

IMPLICATIONS:

The following are the implications of the study.

Implementation of an authenticated LCA (Life Cycle Analysis) report for the product of the

organisation would aid its customers in claiming the sustainability of the products purchased. More

presentations and seminars for sharing information with the customers are necessary to increase their

awareness and improve their goodwill towards the organisation.

The organisation can make efforts to introduce better products available globally in the Indian

market also in order to increase the goodwill of the existing customers, especially those products having

high sustainability attributes. Applying for government aid towards subsidising these highly sustainable

products can reduce the overall cost of the product which can help in promoting these products among

other products.

The organisation must make its sustainability efforts known in India which can help in promoting

itself. This would also help in drawing the other players in the market to do the same which in turn would

have significant effect on the whole marketing philosophy of the state and the country as a whole.

CONCLUSION

The success of any organisation lies in maintaining its customer base by retaining its existing

customers and also by market expansion and penetration into the market. In the case of B2B marketing

the proposition offered by the company need to be such that it provides the customer with a competitive

advantage as well as one that satisfies the needs of their customers in turn. The study organisation has

done this effectively in being the first to take the whole idea of being sustainable in one‟s business and

applied it across every activity of its business from manufacturing, to procurement, administration to the

final stages of the product. This has led not only to the increase in profits of the company in terms of cost

savings due to reduction in wastages of resources but also the increase in customer goodwill of its

customers. The presence of a correlation between sustainability and customer satisfaction supports the

efforts of the organisation.

REFERENCES:

Cope, D., Winward, J. (1991), "Information failures in green consumerism", Consumer Policy Review,

Vol. 1(2), 83-86.

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Daft, R.L. (2008), The New Era of Management, 2nd edition. United States: Thompson Southern

Western.

Hines, J.M., Hungerford, H.R., Tomera, A.N. (1987), "Analysis and synthesis of research on responsible

environmental behavior: a meta-analysis", Journal of Environmental Education, Vol. 18, 1-8

Hopfenbeck, W. (1993), Dirección y Marketing Ecológicos, Ediciones Deusto, Madrid,

India 2011: Key Sustainability Drivers for Indian Corporates retrieved from

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environmentally responsible consumers”, Psychology & Marketing, Vol. 12(7), 595-612.

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Swenson, M.R., Wells, W.D. (1997), "Useful correlates of pro-environmental behavior", in Goldberg,

M.E., Fishbein, M., Middlestadt, S.E. (Eds), Social Marketing, Theoretical and Practical Perspectives,

Lawrence Erlbaum, Mahwah, NJ, .91-109.

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E-MARKETING TO M-MARKETING: GROWTH AND DEVELOPMENT

JASPAL SINGH

Assistant Professor, Bhai Gurdas Institute of Engineering and Technology, Sangrur, India

ABSTRACT

The growth of direct marketing has been attributed to rapid advances in technology and the changing

market context. The fundamental ability of direct marketers to communicate with consumers and to elicit

a response, combined with the ubiquitous nature and power of mobile digital technology, provides a

synergy that increases the potential for the success of direct marketing. The aim of this paper is to provide

an analytical framework identifying the developments in the digital environment from e-marketing to m-

marketing, and to alert direct marketers to the enhanced capabilities available to them.

Key words: E-Marketing, M-Marketing, website, consumer

Introduction

Traditionally, direct marketing has been understood as a marketing system that builds up relationship with

customers driven by a well-developed, audited and updated database. More recently the growth of direct

marketing has been attributed to rapid advances in the technology and the changing market context.

Environmental threats, such as the impact of the anthers scare on postal mail, provide further impetus to

shift to virtual communication delivery. It is argued that direct marketers have always been required to

have a strong understanding of customer habits, Customer patterns of behavior and data segmentation in

order to elicit the necessary level of response. This fundamental ability to communicate directly with

consumers and to gain a response can be markedly enhanced because of the ubiquitous nature and power

of mobile digital technology. Used strategically, mobile technology can provide a synergy that will

increase the potential for the success of direct marketing. Therefore, it is proposed that direct marketers

have exciting new possibilities with m-marketing and need to become more familiar with the application

of marketing to the mobile environment of smart phones, mobiles phones and personal digital assistants.

As with any new academic field, research in this emerging area is pre-paradigmatic. Bertle has identified

the research, thus far, as located in three domains within the marketing/business perspective. Specifically,

these domains include: evaluation of the role of mobile Internet applications for mobile network


IJMRR


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operators; user-centered studies that focus on consumer responses to early product offerings; and studies

that review technological and market evolutions to forecast potential new applications and their

effectiveness. This paper contributes to both in PC-based and mobile internet environment. Secondly, it

develops a comparative framework that alerts direct marketers to enhanced capabilities available to them

and highlights the key dimensions by which direct marketers can develop effective interactive marketing

strategies in the evolving digital environment.

Around the world, the online population has increased markedly with the number stated to be up to 533m.

Internet access in PC and use are predicted to continue increasing globally to 2013 with expectations that

internet users has shown a revolutionary rise. At the same time, developments in 3G technologies and

revolutionary growth in cellular connections worldwide present enormous opportunities for marketers to

build new markets based on mobile devices. M-Marketing encompasses this new millennium of

interactive marketing.

What is M-Marketing?

M-Marketing should be considered within the context of M-Business and M-Commerce. Emerging from

recent developments in communication technology, M-business represents ‘Mobile’ business and ‘refers

to the new communication and information delivery model created when telecommunications and the

internet coverage’.

M-Commerce combines the power and speed of the internet with the geographic freedom of mobile

telephony in terms of receiving and transmitting data and, importantly, the ability to conduct transactions.

The emerging capacity to communicate with any individual, from any place, over any network, and to any

device, regardless of time or geographical location provides enormous potential for marketers. For this

reason, the impact on marketing strategies for direct marketers needs to be addressed. The various short

message service (SMS) campaigns provide an illustration of this potential. e.g. by utilizing the 24/7

Media Europe opt-in SMS database and using a text message to alert a specific demographic group,

Adidas was able to increase brand awareness and to drive users to watch the Adidas television

advertisements.

In this paper, m-marketing is defined as the application of marketing to the mobile environment of smart

phones, mobile phones, personal digital assistants (PDA) and telematics. M-marketing is characterized by

both the undeterred interaction with World Wide Web (www) and location-specific context which

enhances communication and delivery of information. Marketing communication and information can be

delivered to mobile devices via voice-activated portals, text applications such as SMS, using e-mail, and

via web-mediated delivery using the 3G or 4G spectrum. These applications provide ideal opportunities

for innovative direct marketing, but it must be recognized that the databases need to be developed in

tandem with this new technology to ensure that customers receive welcome information at a time and in a

place that they desire. The key is more to do with understanding how individual consumers will want to

interact with their selected brand or content via m-marketing rather than simply using the technology. The

“Time2Flirt” case provides a good example of an m-marketing application that uses the technology

appropriately to meet the target market needs.

In Australia Time2Flirt is an SMS product of Carbon Partners in clubs. Upon entering the pub or club

customers send a text message containing a key word to a designated central number. They are then given

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a unique identifier number for the night. Armed with this, they can go to promotional people on the floor

and claim their Time2Flirt badge, a bright easily identifiable number for sticking on their clothes. At this

point people in the bar send each other a text message through the central Time2Flirt number such as: ’27

u look like babe, cm c me on d dance floor 56’. The pub’s or club’s patrons benefit by having their needs

for fun met in an enhanced format. Venues benefit by bringing more people to the pub or club for this

added service and by building a database of clients. Equally importantly, they can communicate special

offers to their customers on the night or in the future and begin to build an interactive dialogue.

Realizing the potential of m-marketing should be high on the direct marketers despite of the initial

indications that consumers may be slow to adopt the new mobile enhancements. Many mobile phones are

connected to networks that enable the phone to send and receive messages (SMS). More than GSM and

CDMA text messages are send per month. Given the popularity of SMS from the last decade, marketing

applications that are built on it, are able to access an extremely large customer base without the need for

more technically sophisticated networks and mobile devices, such as WAP phone and Bluetooth enabled

devices that can access the internet. Direct marketers have always been incorporating e-marketing

applications in their strategies in that they have accessed user groups via Internet and employed

interactive website banners effectively to reach their target audience and enable them to target business. It

is, however, important to clarify the concept of m-marketing in contrast to traditional e-marketing to

enable marketers to develop innovative strategies that target consumers at evolving technology/consumer

interfaces.

For instance, Mobliss (the parent company of Reaxion and PressOK Entertainment, two strongholds in

the mobile development and publishing world) was able to run a campaign with contact lens retailer 1-

800-Contact (Leading direct marketer of contact lenses located in Salt Lake City) using entertainment via

cell phones to the call centre. They provided a game called Jumble where a new puzzle was provided

every 60 seconds. In the case of a contact lens retailer these jumbled words might include ‘vision’ and

‘focus’ and ‘clarity’. This was followed by the presentation of a graphical or text advertisement to the

player, but only after they had already answered the puzzle and were awaiting the next one. In this way

they were not detracting from the game experience, but the consumers could order directly by clicking a

button and becoming connected with the advertisers call centre.

Traditional E-Marketing VERSUS M-Marketing

It has been claimed that the Internet is revolutionizing marketing and advertising as the movements of

every customer are tracked and matched with numerous databases to yield ‘infinite permutations’ of

customer profiles. With the development of e-marketing which uses the capabilities of the Internet to

access customers primarily through the destination website and e-mail, customers were required to find

the marketer and be lured to websites (‘drive-to-site’). The use of web for e-marketing shifted the onus

onto the customer to help themselves to information, products and services that they wanted. This set up a

lengthy and often haphazard process whereby customers had to first find the website, be engaged by its

attractions and perceived value, perhaps revisit the site and eventually be convinced to do business.

Consequently, the imperative for marketers to know and understand the needs of their customers

escalated, and they required information in terms of on-line search behavior and online attitudes such as

immediate reaction to on-line advertising. New Internet-enabled metrics afforded marketers the capacity

to track, in real time, click through, page views and leads generated.

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A key issue in e-marketing has been the expenditure involved in maintaining a high Web profile that

inspires potential Web consumers to visit the site and encourages them to do business. To be viable

economically, a destination website must not only attract repeat visits, but gain increasingly more

information about every customer’s profile with each visit. Some researchers argue that firms using the

destination model struggle to add enough value to induce customers to repeat their visits and find it even

more difficult to encourage them to disclose intimate information. They suggest that the concept that a

website is equivalent to a marketing strategy must be discarded, and that there is a mismatch between

using the destination website as the fundamental model for e-commerce because it fails to suit the needs

of most firms and customers. M-commerce, on the other hand, combines the benefits of mobile telephony

in terms of receiving and transmitting information and conducting transactions with the internet. Thus,

strategy for M-marketing is to use the power of timely and relevant information, the enhancements

provided by the Internet and consumer location information to reach consumers at the point where and

when they are ready to do this business. In practice, effective M-Marketing depend on the ability to

acquire mobile phone numbers to establish a point of conduct. Efforts to obtain customer information by

E-marketing are important to facilitate m-marketing, as well as the potential to access mobile users by the

mobile network providers. Gathering data from mobile phone can be done by utilizing other media such

as TV/radio. e.g. some TV programs encourage their audience to send SMS to answer a quick quiz for the

opportunity to win prizes.

Quadrant 1

PC based search/Online

transactions

Quadrant 2

Mobile Devices/ Online

transactions

Quadrant 3

PC based search/Offline

transactions

Quadrant 4

Offline transactions

From ‘sit and search’ to ‘roam and receive’

M-marketing has become an important part of ‘a pervasive electronic presence that senses and responds

not only to who the customer is, but where she is and what she’s doing’. It is clear that adding value to the

consumer experience will require that organizations anticipate and meet the needs of customers not only

based on psychographics, demographics and behaviors, but also on their real-time personal physical

location, and to travel alongside the customer to provide them with tailored messages and information at

the point of need. This reorientation in the way that marketers must attempt to reach their target market

fits well with the tradition of direct marketers and their strong customer relationship focus.

In this paper it is proposed that this shift from the PC-based website to mobile applications is

characterized by a concomitant change in consumer behavior from ‘sit and search’ to ‘roam and receive’.

Marketers have focused on reaching their consumers in a virtual environment via a website. It is now

imperative that they expand their focus to a more contextually sensitive real environment. These ideas are

encapsulated within the e-marketing or m-marketing matrix which highlights the three dimensions of

connections, consumer behavior and environment. Specifically, it displays on-line/offline connections,

‘from ‘sit and search’ versus ‘roam and receive’ behavior and virtual versus real-world environment.

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Quadrant 1 exemplifies the e-marketing/e-commerce scenario where consumers sit and search for

information, products and services and buy, trade or make financial and other transactions without leaving

home. An example of this type of consumer interaction is the situation where an individual uses his/her

home computer to both search for and purchase products.

Quadrant 2 denotes the m-marketing/m-commerce scenario where the user is able to roam with a mobile

device, receive messages pertaining to a potential product and service and is then able to purchase online

via their mobile device. This represents the mobile Internet with consumers searching, interacting and

purchasing in virtual space. In some senses, consumers are travelling in a virtual bubble while physically

navigating the real world.

Quadrant 3 depicts the consumer’s use of a PC to search the Web in order to obtain information about

products or services, and following up this activity by going out to purchase offline in the ‘real world’.

This behavior is becoming more widely recognized by ‘brick-and-click’ organizations and their web-page

developers with applications that add location specificity to custom Web applications to assist customers

in accessing the physical setting for offline purchases.

The final quadrant, describes m-marketing or more specifically location marketing (l-marketing). In this

case, the location of the individual is known via their mobile device and appropriate messages can be sent

at a time where he/she is able to act upon the information to purchase a product or service. This quadrant

describes the most innovative applications of enhanced digital technology whereby direct marketers have

enhanced potential for interactivity through the use of consumer location information.

Business and marketing strategies have in the past focused on quadrant one whereas a great change has

been found for marketers to expand their strategies into quadrants 2 and 4. These two quadrants epitomize

the new m-marketing space, and provide marketers with opportunities to use innovative strategies in their

goal to communicate interact and transact with consumers on the move.

If m-marketing, as depicted in quadrants two and four is to be successful, it is essential that the

applications meet the Ovum’s (www.ovum.com) three Cs of convenience, (low) cost and compulsive to

use. In this paper, however, it is argued that a fourth ‘c’, relating to contextual sensitivity, is central to m-

marketing. Mobile technology has enabled an individual to be enmeshed simultaneously both in the real

and virtual world, and marketers need to develop context responsive applications to optimize m-

marketing’s effectiveness.

First, convenience is a key advantage for consumers who can use their mobile device to gain information

about a product or service at the time that they are making a buying decision while shopping at physical

locations. Indiamart, e.g., has provided a new service to make it easier and convenient for anyone with a

mobile device to with advertisements instantly and in any medium. With this service, advertisements in

the traditional media have a short string of number that a consumer is able to dial from any mobile phone

to initiate an interactive session. It therefore has the convenience of the traditional numbers and make m-

internet mainstream and makes it simple for consumers to act an impulse sparked by an advertisement,

For instance, sending an SMS to 56767 etc. If a teenager sees a magazine advertisement for a movie such

as ‘Fast Five’, he/she should dial *111FAST# to access more information and promotions, purchase

tickets, or play movie related games on the mobile device

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Secondly, while mobile costs can be significant, lowered costs can be enjoyed by consumers who take

advantage of facilities such as ‘opt-in’ messaging. For example, discounts off call bills can be provided on

the basis of acceptance of advertising messages. Way2SMS, a large mobile Internet portal, took the

opportunity to boost text messaging for thousands of students, teenagers and schoolchildren with free

designed Father’s Day greetings. The low cost, instantaneous delivery of text messages is attractive to

young people and this service allows a last-minute, personal message within an interactive medium.

Thirdly, the compulsion to use mobile phones currently exists for social communication to use mobile

phones currently exits for social communication. It is envisaged that as digital tools become smaller,

faster and cheaper, they insinuate themselves into each corner of life. An SMS voting application is used

in TV reality shows such as Indian Idol, where spectators can vote for their favorite artist, so as to make

him/her win the competition, thus building the social communication and mobile community.

Finally, to be contextually sensitive, applications must be responsive to location, customer needs and

device capabilities. For example, time and location-sensitive applications, such as travel reservations,

cinema tickets and banking will be excellent vehicles for mobile-based promotions. Consumers can go to

the Web and build preferences with the different restores they are interested in. They can also customize

directly using their mobile phones. Then they can have text-message or e-mail snow alerts sent to their

phone or use to search the phone four resort areas for snow reports. So, via a phone a skier can receive

information about snow conditions then link to the travel agency to book a discounted trip to that resort or

connect to a call centre to speak to a ski-travel agent.

Transactions via the mobile phone should appeal to direct marketers for a number of reasons. Mobile

technology offers personalized consumer interaction often resulting from consumers opting in to the

enhanced information environment, customer-location information and the possibility of continuous

Internet. With the proliferation of mobile devices, user liberation and technological divergence, direct

marketers can link to customers to develop new, stronger relationships and interactions that will provide

them with enhanced prospects for investment return. As with e-services, the employment of these

strategies by direct marketers plays an important role important role important in raising value for

consumers.

For the technical interface factor, the focus of marketing is on the destination website as facilitative mode,

a personal computer equipped with a Web browser as access point and interfacing using standard

connectivity. In contrast, M-Marketing focuses on the mobile device as a facilitative mode, with access

through a plethora of points, which can include mobile phones(cell phones), smart phones, WAP

phones/PDAs, e-wallets, interactive television and telematics and using multiple interfaces.

Implications for practice include the need to have varied services adapted to the level of sophistication of

the access point. In the PC-based Web environment, sites are set up to recognise the interface

configuration of users who will be presented with a quick and appropriate upload. In the mobile

environment, this will be even more crucial to ensure that convenience and compulsive use are possible.

A further important issue is that marketers consider data rather than solely voice communication in the

mobile environment.

A key aspect of the distinction between E-Marketing and M-Marketing lies in the different enabling

technologies. Most notably, the facilitative mode for traditional E-Marketing, the PC, has been a

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relatively large and cumbersome device that is probably deskbound and equipped with a Web browser

through standard connectivity. Even when configured as a laptop, it is not conductive to ease of

movement. E-Marketing issues relating to the speed of download, cable modem or phone line access are

all directed towards accessing the one type of interaction of interaction framework and in using the Web

or using the e-mails. M-Marketing is faced with the challenge of developing capabilities in a much more

diverse technical context, albeit within the single framework of mobility. Mobile devices currently vary in

terms of the network to which the are connected- the European standard, the Asia-Pacific standard or the

North American standard. The mobile device may be a simple cellular phone or may be value added with

WAP or GPRS enhancements. Rapidly emerged and emerging innovations will deliver the possibility of

smart phones able to use product bar codes to access product-related information and phones able to act

as e-wallets, as either a pre-paid card for small purchases or a fully functioning credit/debit card unit.

Telematics applications are also of growing importance. The challenge to practice is to master technology

to be able to deliver desired services across all interfaces and vary services depending on the level of

technical sophistication of the mobile device.

Table 1: E-Marketing v/s M-Marketing

Key Factors E-Marketing M-Marketing

Technical Interface

Facilitative Mode Destination website The Mobile Device

Access Points PC equipped with web browser Mobile Phone, PDA, Smart

Phone, e-wallet

WAP Interface Standard Connectivity Multiple Interfaces

Content

Information exchange to

customer Limited to customer Expanded to customer

Interaction with Product/service Virtual Interaction Real Interaction

Content/context High Content High Context

Strategic Mandate

Strategic Mandate

Build on destination Website.

Personalise web pages. Wait for

customers to show up.

Develop information and

interactivity enhanced mobile

devices. Be there when and

where the customer is ready to

buy

M-assisted shopping/retailing applications are another area where information, rather than simple

communication, can provide an important marketing tool for customer service. Shopping applications

include the built-in ability to swipe bar codes and receive direct marketing information about products

and comparative prices to enable a more informed shopping decision to be made in real time. Other M-

shopping applications must include a smart card that allows purchases through the mobile, in a face-to-

face or remote application.

Allied a key technical differences are important variations in information type and information exchange

with the user. Particularly useful for direct marketers will be the ability to relate information to

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individuals in a geographic context. For entertainment or shopping purposes customers could receive

information on entertainment or shopping options that might include films showing and film times,

bargains and specials in particular shopping categories, including restraints, in a particular geographic

area. One model for this located information option involves identifying the individual specifically

through a location device in a phone. This has safety advantages in the event of need for emergency

services, but more obviously there are privacy questions that are perhaps insurmountable in this model.

Other options involve broadcasting information through mobile base stations to all mobile devices in the

area at a particular time. As the mobile user pays per individual call and per minute or part thereof,

however, this broadcast option still has problems. One way of overcoming this might be for users to opt-

in to receiving this information from direct marketers. The junk mail and unwelcome phone solicitation

issue has been a perennial for the direct marketing industry, and it is likely that consumers would react

more favourably if approached their permission.

The type of permission marketing will play an even more crucial role in the mobile digital environment.

In the Web-based environment, permission marketing requires the consent of consumers before a website

can track them with cookies or sell their data. For both PC-based and mobile devices, it involves gaining

permission before sending e-mail. As an enticement to opt in, consumers may gain monetary rewards,

discounts or prizes, which assist them to reduce their own costs in using their mobile device. A further

incentive for mobile users to register for electronic customised alerts, which notify them of deals from on-

line or off-line merchants, is the saving on shopping categories relevant to their needs and wants. It is

essential that permission marketing communicates value to consumers in view of importance for

marketers of gaining access to and using location data to customise promotions and implement other I-

commerce or m-commerce applications.

Despite efforts to encourage consumers to opt-in, little progress will be made if the visual and audio

formats associated with mobile devices are inadequate. The dominant information mode for the PC is

visual information with some important user- initiated exchanges of audio information. For the mobile

phone, delivered information has primarily been audio, with capacity to deliver information and

communication while visual attention is directed elsewhere, for example to driving or walking or

interacting with the service and product environment. The large screen capacity of the PC allows superior

visual information where the small screen of digital assistants, even enhanced ones, is still limited. The

challenge for practice, therefore, is to develop audio and visual services to a level where they meet

consumer demands for convenience, cost effectiveness, compulsiveness and contextual sensitivity.

The final factor that of the strategic mandate, also differs from the e-marketing to the m-marketing

situation. E-marketing has dominated, correctly or incorrectly by the destination Web page. The m-

marketing mandate, however is posited to revolve around connectivity, responsiveness and the context

embed. The ‘m-assistant’ and the ‘personal concierge’ terminology go someway towards capturing the m-

marketing mandate that lies in their seamless and integrated facilitative relationship between the

consumer and the mobile device. While direct marketers have long used the telephone, they are

challenged to understand more clearly the relationship between the consumer and their mobile device. For

example mobile phone users are generally reluctant to make their phone number widely known and may

restrict the listing of their number in formal and informal directories. Users have adopted the mobile

phones and in effect taken it into their personal space for the simple reason that they find a personal,

mobile communication device valuable and useful. The challenge to direct marketers is to develop the

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potential of m-marketing around providing relevant information, being with the user, and being

responsive to needs while being determined not to impose unsolicited or unwelcomed information.

Strategists need technical and managerial solutions that enable them to identify when they are needed, to

become a partner to the access, use and management of information to enhance consumers’ real-world

embedded experience with direct m-marketing.

IMPLICATIONS AND RECOMMENDATIONS

This paper has presented two key frameworks to identify how the transition to the m-marketing era

impacts on consumer behaviour and influences the drivers shaping marketing strategies for the future.

First, consumers are no longer tethered to their PC in virtual space. The e-marketing/m-marketing matrix

shows that mobile technology has freed both the consumer and marketer to roam in tandem to

communicate and transact in both the real and virtual environment. The second framework provides a

comparison of the key drivers associated with e-marketing and m-marketing. The value of this framework

for direct marketers is the tabulation of the critical differences in the technical interface, the content and

the strategic mandate that have evolved in the transition from e-marketing to m-marketing. Building on

this foundation, they may be able to move more confidently and competently into the m-marketing era.

It is recommended that direct marketers develop more adaptive business models as m-marketing customer

will only accept approaches, or attempt to access information, that is vital, that conforms with the Cs of

convenience, (low) cost and compulsive to use together with contextual sensitivity. It is anticipated that

viral marketing will mutate, and it is recommended that direct marketers develop the ability to tap into

these communication networks. As people communicate more seamlessly on mobile phones than on

computer, it is likely that there will be more opportunities for direct marketers to get their message

disseminated at little cost to themselves and with higher credibility and readership. The youth market, in

particular, is providing direct marketers with rich prospects for connecting into a communication

evolution via mobile digital technology. For example, the low cost SMS text-messaging, interactivity,

personalisation and environmental friendliness of m-marketing links well with youth lifestyle. Marketers,

however, must also be aware that language used in messages will be of utmost importance in the success

or failure of the advertising messages. It is recommended that the style of mobile users’ grammar, spelling

and colloquialism be mimicked to take advantage of the connection. Failure to keep abreast of rapidly

changing cyber-colloquialism will endanger the relationship between marketer and consumer.

There is further potential for direct marketers to add to their customer profiling by segmenting the market

with regard to mobile device used and to employ communication strategies that address the particular

segments specifically. Using a device segmentation base as part of techno graphics is recommended that

message format more appropriately to the technical capability of the devices being used. Not all devices

will support elaborate communication strategies, but as stressed previously, opportunities still exist for

marketers to use simpler technology such as SMS effectively. It is probable that slogans will become

more important in view of the lack of screen size, and the fact that they are more in keeping with

conversational models that is appropriate to the mobile phone milieu. Finally, as highlighted throughout

the paper, mobile marketing enables distribution of information to the consumer at the most effective

time, place and in the right context. This suggests that m-marketing, via mobile devices, will cement

further the interactive marketing relationship.

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Finally, it is recommended that direct marketers need to put m-marketing high on their agenda because as

more applications are developed m-marketing is likely to deliver the responsiveness and targeting that

other media have only promised. M-marketing requires direct marketers to rethink their strategies to tap

into already existing communities, such as sports fans and time-context communities such as spectators at

football/cricket matches, festivals and location-sensitive communities such as gallery visitors and mail

shoppers and develop ways to get them to opt-in to value-added experiences through m-marketing, as for

example in the Time2Flirt application that enhances a night at a pub or club.

CONCLUSION

The future of m-marketing is already developing in tandem with the rapid advances in mobile technology.

Direct marketers need to confront the implications for strategies and practice presented by m-marketing if

they are to succeed in this rapidly changing technological environment. This paper has attempted to alert

direct marketers to the significant developments in mobile technologies and provide them with an

analytical framework to identify potential opportunities to enhance their interactive strategies.

DEDICATION

This Research Paper is lovingly dedicated to my respective parents and other family members who have

been my constant source of inspiration. They have given me the drive and discipline to tackle any task

with enthusiasm and determination. Without their love and support this project would not have been made

possible.

ACKNOWLEDGEMENT

I would like to acknowledge the contributions to Dr. Amrish Dhawan, Principal, RMC, Patiala, whose

encouragement, guidance and support from the initial to the final level enabled me to develop an

understanding of the subject. To my truly great friends, Sukhwinder Sharma and Shaukat Ali, who has

made available their support in a number of ways. Lastly, I offer my regards and blessings to all of my

students (Ramzina Begum, in particular) who supported me in any respect during the completion of the

project.

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[3]. Armstrong, R.W. “The Relationship between Culture and Perception of Ethical Problems in

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[8]. Brown,S., “Marketing and literature: the anxiety of academic influence”

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[10]. Clemons, E.K. and Bardley, S.P., “Strategic uncertainity and the future of online consumer

interaction”

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[11]. Costa, J. (1998), “ Power tools for multicultural marketing researchers”

[12]. Decision Analyst. http//www.secisionanalyst.com/online/acop.htm

[13]. Dutka, A., Competitive Intelligence for the competitive edge, NTC Business Books, Lincolnwood

[14]. Fassino,M. “Neural Networks; using the past to forecast the future”

[15]. Godin, S., Permission Marketing, Simon and Schuster, New York, NY

[16]. Kotable, M. and Helson, K., Global Marketing Management, John Willey and Sons, New York, NY

[17]. Richards, L. Using NVivoin Qualitative Research, Sage Publication, Thousand oaks, CA

[18]. SCOLARI, http//www.scolari.com

[19]. Slater, S.F. and Narver, J.C. “Market oriented is not enough; build learning organization” , in

Deshpande, R.(Ed.), Developing a Market Orientation, Sage Publication, Thousand oaks, CA

[20]. Vitell, S. and Ho, F.N. “ Ethical Decision Making in Marketing; a synthesis and evaluation of

scales measuring the various components of decision making in ethical situations”

[21]. www.12Manage.com

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IMPACT OF SALES PERSONS ON THE SALES OF MOBILE PHONE HEADSETS

DAVID WINSTER PRAVEENRAJ D* Dr.J.ASHOK** MS. SUNITHA DIVAKAR***

*Assistant Professor (Senior Grade) School of Management Studies, Bannari Amman Institute of

Management Studies, Sathyamangalam, Tamil Nadu, India

**Professor, School of Management Studies, Bannari Amman Institute of Management Studies,

Sathyamangalam, Tamil Nadu, India

***Student of II MBA, School of Management Studies, Bannari Amman Institute of Management

Studies, Sathyamangalam, Tamil Nadu, India

ABSTRACT

The growing number of research studies on in-store marketing reveals the importance of awareness about

the impact of in-store marketing on purchase behaviour of buyers. Sales persons are important

components of the in-store marketing elements. Their role in influencing the purchase decisions of the

buyers is inevitable. This paper examines the impact of sales persons in creating sales and building brand

image for various mobile phone accessories.

Key words: Sales persons, Marketing, hands-free.

I. INTRODUCTION

The purchase decisions of buyers are no more influenced only by marketer controlled elements.

Marketing experts talk about the growing influence of in-store marketing on the purchase decisions of

buyers. In-store marketing refers to any and all efforts that are made within the boundaries of a store to

attract customers and to persuade them to purchase a given product. As the name suggest, In Store

Marketing is mainly performed within a store. It includes techniques like merchandising, displays,

sampling, media advertising promotions, coupons as well as influencing shoppers through encounters

with the stores’ sales persons

The face of sales and the role of sales persons in businesses are changing. Sales people are no longer

expected to be an expert in just products or solutions. Now, sales people must have a better grasp of key

business issues affecting a company. Plus, they also need to be able to offer insights and ideas on how to

solve or manage those issues.


IJMRR


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The role of sales persons in in-store marketing is vital. The job of a sales person includes but not

limited to Sales promotion, Product demonstration, Customer care, Making customers aware about the

discounts offered by the store, Taking care of displays, Regular up gradation of stocks and many more

else. The job is indeed a serious one and the fate of the store or the business also depends upon these sales

persons to a great extent. If the sales person will not be able to perform his/her duty in the proper manner,

you can suddenly find loss in business. Buyers may not show interest to visit your stores if they are not

treated well and assisted by the sales persons.

Sales persons are duty bound to make sure that the buyers will visit their stores again and again and

leave the store happily. The motto of this in-store marketing strategy is not only to make the existing

customers happy but also to grab the attention of the new buyers and maintain a regular flow of traffic to

the store.

Having said about the importance of sales persons in creating sales there is a need to investigate if

buyers who visit the store get influenced by the sales persons in making purchase decisions. Thus this

study is taken to find out the impact of sales persons on the purchases of mobile phone headsets by the

buyers.

II. INDUSTRY PROFILE

Headsets have found new headroom in India. The hands-free mobile revolution seems to be

revolutionizing the use of Bluetooth-enabled headsets in the country, as the category is now coming out

of the clutches of the accessories market and establishing a niche of its own.

Established branded mobile handset players are today actively looking at making headsets part of

their package offering to customers. India is a major IT hub and it comes as no surprise that the Indian

Bluetooth headset market is expected to grow at a compound annual growth rate (CAGR) of 74% as

against 48% of China.

According to a recent Frost & Sullivan report, the professional headset market in India is

expected to grow at a CAGR of 21% over the next five years, which will be driven by the contact centre

and IT enterprise segment through addition of new seats and replacement of handsets by headsets. The

growth in the mobile headset segment is also going to be driven by the ongoing revamp and restructuring

of the retail sector, which is making way for new retail formats that include departmental stores,

supermarkets, specialty stores and hypermarkets, backed by the strong GDP growth in the next five years.

One of the key drivers of headset market growth is the explosive growth in the Indian mobile

telecommunications industry, with around 8-10 million new subscribers being added each month. "With

the rapid convergence of telecommunication and entertainment (e.g., music) on mobile handsets and other

mobile entertainment devices, Indian headset market is expected to grow about four times in the next 3-4

years," says KPMG Advisory Services director Jaideep Ghosh. The Denmark-based GN is leading the

hands-free charge and consumers are taking to the new technologies quickly and in increasing numbers.

According to IMS Research, the worldwide market for Bluetooth headsets in 2012 was approximately

53.5 million. That is expected to reach 68.4 million in 2013 and top the 199-million mark by 2014.

"The APAC region will see the fastest growth rate in adoption of Bluetooth headsets in India in the

coming years. The Indian Bluetooth headset market is expected to grow at CAGR 74% as against 48% of

China. Moreover, the Indian market is expected to surpass the combined market size of the Australian

continent in the next two years alone," states the IMS survey. GN brand Jabra manufactured 29-million

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headsets, which work out to around 50 units every minute of the year, or roughly half the total number

sold.

"The response to our headsets has been overwhelming. Mobile headset business has achieved over

200% volume growth, contributed largely by organized retail format. We have strengthened our India

presence through the appointment of a dedicated sales team and are now targeting presence of the Jabra

brand in over 2,200 POS by year-end," says Shaz Khan, president, Asia Pacific, GN.

The Smartphone market in India is also witnessing a tremendous growth. India overtook Japan to

become the world’s third largest Smartphones market by volume for the first time ever in the first quarter

of this year with Samsung, Micromax and Apple among the major brands leading the market.

According to the latest research from Strategy Analytics, an independent research firm, around 10

million Smartphones were shipped in India during the first quarter, almost tripling from 3.8 million units

a year earlier. The market is led by China and the US right now. India is growing four times faster than

the global average. Worldwide Smartphones shipments expanded 39 per cent year-over-year, compared

with 163 per cent year-on-year across India, during the period.

India is the new China. It is a low-penetration, high-growth market that no Smartphone vendor,

component maker or apps developer can afford to ignore. Apart from the foreign firms such as Samsung

and Apple, domestic players such as Karbonn and Spice are growing between 200 and 500 per cent on an

annual basis, apart from Micromax.

The market leader Samsung has focused on consumer needs and brought in devices that have catered

to those needs. Their R & D centres in India are helping them customise their offering by way of the

applications or the hardware itself.

III. IMPORTANCE OF THE STUDY

The salesperson does play a strategic role in achieving long-term sales from an established customer.

By improving the buyer's motivation to continue the relationship, the salesperson can secure the

continuity of the buyer-seller relationship.

A study conducted among the buyers found that the salesperson has substantial influence on the

buyer's motivation to continue the relationship, and thus on the long-term sales from these customers. In

addition to the direct effect of perceived salesperson performance on buyers' motivation to continue the

relationship, there is a strong indirect effect through the salesperson's influence on the perceived

reliability of the supplier. The salesperson also affects the perceived value of supplier services, which

differentiates that supplier from competing suppliers.

From the buyer's perspective, a high-performing salesperson is one who can foster an ongoing

personal relationship with the buyer. A good personal relationship facilitates communication and mutual

understanding. Skilled salespeople also manage conflict well and mediate planning information between

the two organizations. So the implication is that management should redefine the sales function as a long-

term marketing tool within established relationships. The salesperson's role is shifted from selling

individual products to "selling" the relationship with the supplier. This implies, among other things, that

the salesperson becomes responsible for coordinating internal functions and routines that will influence

the reliability of the supplier and for orchestrating various value-adding services.

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This is why this study is taken to understand the impact of sales persons on sale of products and what

attributes the buyers expect from a salesperson.

IV. OBJECTIVES

To study the influence of sales persons on the purchase decisions by the buyers.

To find out how the visitors of the store assess the sales persons on various parameters.

To study the convincing capability of sales person to change the brand decisions by the buyers.

V. REVIEW OF LITERATURE

1. Hamida Skandrani, Norchène Ben Dahmane Mouelhi, Faten Malek, (2011) "Effect of store

atmospherics on employees' reactions", International Journal of Retail & Distribution

Management, Vol. 39 Iss: 1, pp.51 – 67

The paper by Hamida Skandrani, Norchène Ben Dahmane Mouelhi and Faten Malek aims to better

understand the effect of store atmospherics on the employees' cognitive, affective and physiological

responses. It tries to build on store atmospherics literature to gain more insights on how these store

atmospherics – often handled to produce positive outcomes among consumers – affect employees'

attitudinal and behavioural reactions. The study reveals that employees could adopt avoidance behaviours

because of the environmental factors. Specifically, it suggests that the lack of variation in the musical

program, incongruence of music genre – salespersons musical preferences, long exposure to the same

rhythms, task complexity, crowding, might affect the employees' attitudinal and behavioural responses. In

addition, the relationships between the sales force team are found to influence employees' reactions.

2. Josée Bloemer, Ko de Ruyter, (1998) "On the relationship between store image, store satisfaction

and store loyalty", European Journal of Marketing, Vol. 32 Iss: 5/6,

pp.499 – 513

In their article Josée Bloemer and Ko de Ruyter had examined the relationship between store image, store

satisfaction and store loyalty. A distinction is made between true store loyalty and spurious store loyalty

and manifest and latent satisfaction with the store. The authors hypothesized that the positive relationship

between manifest store satisfaction and store loyalty is stronger than the positive relationship between

latent store satisfaction and store loyalty. Furthermore, the authors hypothesized a direct as well as an

indirect effect through satisfaction of store image on store loyalty. Second, the relationship between store

image and store loyalty is mediated by store satisfaction. The study did not find evidence for a direct

effect of store image on store loyalty.

3. Gillian Naylor and Kimberly E. Frank, (2000) "The impact of retail sales force responsiveness on

consumers’ perceptions of value", Journal of Services Marketing, Vol. 14 Iss: 4, pp.310 – 322

The extant research by Gillian Naylor and Kimberly E. Frank suggests that salespeople can significantly

impact consumers’ outcome perceptions. The study examines the importance of initial contact with

salespeople on consumers’ perceptions of value and the impact of salesperson service failure on

perceptions of value among non-purchasers. An exit survey of shoppers was conducted to realistically

study these issues. Results show that outcome perceptions were significantly lower when either there was

no contact with salespeople, or the consumer had to initiate the contact. The retailer that had the highest

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percentage of salesperson initiated contact, earned the highest perception ratings and also had the highest

ratio of buyers to browsers. Furthermore, non-purchasers that experienced service failures (slow service

or offended by a salesperson) discounted not just the perception of that retail visit, but also overall value

compared to other retailers. These results of the study suggest that retailers must encourage their sales

staff to initiate consumer contact.

4. Ruoh-Nan Yan, Jennifer Yurchisin and Kittichai Watchravesringkan, (2011) "Does formality

matter?: Effects of employee clothing formality on consumers' service quality expectations and

store image perceptions", International Journal of Retail & Distribution Management, Vol. 39 Iss:

5, pp.346 - 362

Ruoh-Nan Yan, Jennifer Yurchisin and Kittichai Watchravesringkan had conducted a study aimed to

understand whether and how sales employee clothing style would influence consumers' perceptions of

store image through their expectations of service quality and to uncover how fashion orientation would

influence the aforementioned relationship. Results indicated that formality of employee clothing (i.e.

formal business, moderate, or casual attire) served as a cue in the retail environment for consumers to

make inferences about the service quality expected to be provided by the sales employee. Furthermore,

formality of employee clothing both directly and indirectly influenced consumers' perceptions of store

image. The authors suggest retailers to pay attention to the design of their salespeople's clothing because

different clothing styles draw forth different evaluations from customers about the service quality

provided in retail stores.

VI. RESEARCH METHODOLOGY

A) Research Design

There are two types of research design. They are exploratory and conclusive research. Among these

two research designs, Conclusive research is used in this study. Conclusive research provides information

which helps the manager decide on a correct decision, conclusive research consists of formal research

procedures including clearly defined goals and needs. Usually, a questionnaire is designed in conjunction

with a sampling plan. There must be a clear link between the alternatives in the evaluation and the

information that is to be collected. This line of research can include simulation, surveys, observations and

experiments.

B) Sampling Design

The population size is 50. Since the study is conducted among the buyers who visit the store simple

random technique is used to select the samples from the population. Simple random sampling is a basic

type of sampling, since it can be a component of other more complex sampling methods. The principle of

simple random sampling is that every object has the same possibility to be chosen. The population

consists of the buyers who visited the store for purchase on a particular day

C) Tools of Analysis

The data has been analysed using Friedman test, Mann- Whitney U test and Kruskal Wallis test

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VII. DATA ANALYSIS AND INTERPRETATION

The data collected from the buyers were tabulated using frequency tables. Hypotheses were framed and

tested using tools like Friedman test, Mann- Whitney U test and Kruskal Wallis test. The tests were run

using SPSS. Some of the output tables are listed below.

FRIEDMAN TEST

Ranking by the buyers on the various attributes of the Sales persons

Test Statisticsa

N 50

Chi-Square 77.551

Df 16

Asymp. Sig. .000

Ranks

Particulars Mean Rank Rank

Physical appearance of the sales person 9.15 10

Communicative ability of the sales person 9.44 8

Product demonstration made by the sales person 10.24 2

Response to customer query 10.03 5

Knowledge about the product 11.18 1

After sales service 10.19 3

Selling ability of the sales person 10.10 4

Patience maintained by the sales person 9.98 6

Attitude of the sales person 8.35 13

Willingness to spend time to customers 9.25 9

Listening to the needs of the customers 8.80 11

Technical knowledge 9.80 7

Purchase decision influence by the sales person 6.87 17

Consideration of sales person at the time of

purchase

7.25 14

Preferred brand rather than switching brands 6.98 15

Buying behaviour of the customers with the opinion

of sales person

6.88 16

Convincing capability of the sales person 8.51 12

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The test revealed that the asymptotic significance is below 0.05. Hence the alternative hypothesis (H1)

“The ratings various factors used to measure the satisfaction level of buyers based on the behavior of a

salesperson are significantly different” is accepted. The interpretations based on the rankings by buyers

on the various attributes are presented in the Findings.

MANN-WHITNEY TEST FOR TESTING THE DIFFERENCES IN RATINGS BASED ON

GENDER

Overall rating on sales persons based on gender

Gender of the

respondent N Mean Rank Sum of Ranks

Overall Male 24 22.56 541.50

Female 26 28.21 733.50

Total 50

Test Statisticsa

Overall

Mann-Whitney U 241.500

Wilcoxon W 541.500

Z -1.371

Asymp. Sig. (2-tailed) .170

a. Grouping Variable: Gender of the respondent

The above test shows that the asymptotic significance is above 0.05. Hence the hypothesis stating

that irrespective of the gender of the respondents their on the sales persons are same is accepted.

VII. FINDINGS

This study aims to find out how the buyers rate the sales persons on various attributes. The data was

collected through survey method with the help of a questionnaire. The data was analyzed using the

statistical tools like Friedman test, Mann- Whitney U test and Kruskal Wallis test. The findings of the

study are presented below.

The difference in ratings by the buyers on the various attributes of a salesperson which determines the

satisfaction level was tested using Friedman test. The test result revealed that the asymptotic

significance is below 0.05. Hence it is inferred that the buyers have rated the various attributes they

look for in a sales person differently. The high mean ranks given for the attributes like Salespersons’

knowledge about the product, Product demonstration made by them, After sales service provided,

Response to customer queries and the patience of the salespersons indicate that the sales persons

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posses adequately these traits and the buyers are satisfied with the salespersons in these attributes.

Low mean ranks for the attributes like Attitude of the sales person, Consideration of the opinion of

the sales person at the time of purchase, Convincing capability of the sales person indicate that the

sales person should improve on these areas and develop themselves.

Mann-Whitney Test revealed that the ratings on the attributes of the sales persons by male buyers and

female buyers are not significantly different.

Kruskal-Wallis Test revealed that irrespective of the age group they belong to the buyers have rated

similarly the sales persons on the various attributes.

Most of the respondents are satisfied with the physical appearance of the sales persons of the store

taken for the study

Many respondents are ready to accept the brand suggested by the sales person than going for the

brand choice they had made.

Many respondents are willing to consider the opinion of the sales persons in deciding their brand

choice.

The buyers have rated high the technical knowledge, listening skills of the sales persons.

VIII. SUGGESTIONS

It is explicitly known from the study that the buyers consider the opinion of the sales persons. They

also expect some traits to be possessed by the sales persons. Based on the interactions with the buyers at

the store some suggestions to improve the behaviour so sales persons are presented below.

Sales persons must have the ability to communicate well to the buyers based on the buyers’ level of

understanding.

Sales person should not be in a hurry to close the sale. Rather they should first try to understand the

needs of the buyers.

Sales person must have the convincing capability to convince the buyers that they are making a right

choice.

Sales person must have the right attitude and should always try to make a long standing relationship

with the buyers.

The behavior of a sales person must make the customer feel that they are given importance and due

consideration.

Sales person must be bold and brave enough to face any sort of problem and issues that the buyers put

forth.

The sales person must learn how to attract the first time buyers and convert them to customers.

Sales person must be able to comprehend the perception of the buyers and deal accordingly.

Sales person must not be arrogant to the buyers at any point of time.

The sales persons should understand the greater role they play in purchase decisions and increasing

the store traffic

IX. CONCLUSION

Sales persons form the core strength of any entity. Thus it is important to ensure that they are

groomed properly they are fed with the traits that the visitors expect. The study reveals some important

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findings like consideration of the opinions of the sales persons by the buyers in making purchase

decisions. So, the dealers should train, motivate and equip their sales persons accordingly.

The scope of the study can be extended to study the impact of other in-store marketing elements on

the purchase behaviour of buyers. Studies can also be undertaken to know the impact of sales persons on

purchase decisions of the buyers across different product categories.

X. SUGGESTIONS FOR FUTURE RESEARCH

This study may be extended to find the impact of sales persons in the purchase decisions of other

product categories.

This study also provides scope for the study of impact of other in-store marketing elements like

store atmospherics, in-store promotions.

REFERENCES

[1]. Harald Biong and Fred Selnes, 1996, The Strategic Role of the Salesperson in Established

Buyer-Seller Relationships, Marketing Science Institute: 96-118

[2]. Hamida Skandrani, Norchène Ben Dahmane Mouelhi, Faten Malek, (2011) "Effect of store

atmospherics on employees' reactions", International Journal of Retail & Distribution

Management, Vol. 39 Iss: 1, pp.51 - 67

[3]. Julie Johnson-Hillery, Jikyeong Kang, Wen-Jan Tuan, (1997) "The difference between elderly

consumers’ satisfaction levels and retail sales personnel’s perceptions", International Journal

of Retail & Distribution Management, Vol. 25 Iss: 4, pp.126 – 137

[4]. Jae-Eun Kim, Jieun Kim, (2012) "Human factors in retail environments: a review",

International Journal of Retail & Distribution Management, Vol. 40 Iss: 11, pp.818 – 841

[5]. Gillian Naylor and Kimberly E. Frank, (2000) "The impact of retail sales force responsiveness

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