session ii- rural marketing

8/4/2019 Session II- Rural Marketing

1/13

Session II

Xavier Institute of Management, Bhubaneswar

Segmentation, Targeting & Positioning in

Rural Markets


2/13

Orientations to the Market

y Selling orientation - Product orientation - Marketing orientation

y C K Prahalad and V Ramaswamy Co- creating value with

customers

yMarket as a target to Market as a forum

y The contribution revolution

y Customer is the king/ queen

y Understanding the customer is vital

y The Mahatmas words at railway stations

y Foundation of the STP process


3/13

The STP Process

Marketing Decision Marketing Actions to be Undertaken

Segmenting Identifying and developing profiles of

market segments

Target Evaluating segments and deciding the

market coverage strategy

Positioning Identifying , selecting and

communicating competitive

advantages

Source: The Rural Marketing Book- Khasyap. P & Raut. S


4/13

Heterogeneity in Rural IndiaVariable Example

Socio Cultural Differences Caste Based Habitations inVillages

Population Size & Density KeralaVs Andhra Pradesh

Difference in Infrastructure BIMARU statesVs Karnataka

Media Exposure levels KeralaVs Orissa

Literacy Levels Himachal PradeshVs Bihar

Income levels & patterns Farmers & Daily Wage Earners

Family Structure Joint Families & Nuclear Families


5/13

Segmentation: Issues & Options

y Measurability- Accessibility- Differentiability & Profitability

y Is it easy to measure segments in rural areas?

y What are the issues in accessing rural markets?

y Is it necessary to segment underdeveloped markets? ( needfor differentiation)

y What is the appropriate pay back period by focusing on a

segment?

y What should be the appropriate market targeting strategy?

y Mass Segment Niche Micro approaches


6/13

Basis & Approaches to SegmentationSegmentation

Criteria

RelevantVariables ( Indicative)

Geographic Region & SCRs

Village Size and density

Climate

Demographic Age

Gender

Income: ( NCAER )

Landownership

Education ( SEC Classification)

Occupation ( SEC Classification)

Type of home ( SEC Classification)

Psychographics Lifestyle Rural, Urban & Rurban

Personality

Behavioral Occasions

Benefits sought

Loyalty & usage status / rate


7/13

Demographic SEC Classification

y MRUC and IRS

y Three variables Education of chief wage earner durable

ownership- type of house


8/13

Multi Attribute SegmentationThompson Rural Market Index Mica Rural Market Ratings

1. Developed by HTA

2. 26 variables

3. Demographics,agriculture,

electrification and banking

facilities

4. Weights are given to variables

5. Data from 383 districts collected

6. Classification into A, B, C, D and E

markets

1. 42 socio economic indicators

for ranking districts

2. Linear combination of six

variables for measuring marketpotential of districts

3. Classification into A, B , C , D & E

markets


9/13

Contd

y Rural market ratings by RK Swamy BBDO

y Lincompass by Linterland ( Lintas IMAG)


10/13

Effective Market Targeting

y Segment attractiveness must match company objectives and

resources

y Undifferentiated marketing- Coca Cola

yDifferentiated marketing Tractor Marketing

y Single segment concentration

y Deciding the appropriate coverage strategy

y Coca Cola An arms length from desire


11/13

Positioning

y A distinctive place in the mind of the consumer

y Identifying the unique features of the product/ service

y Differences with respect to competition

y Selecting differences having a greater competitive advantage

y Communicating the best advantage to the consumer


12/13

Issues in Positioning

y Attractiveness-Distinctiveness-Pre-emptive -Affordability -

Communicability

y Under positioning over positioning confused positioning


13/13

Close of Session

Thank You

session ii- rural marketing

Documents