CU-BBA-SEM-III-Rural Marketing

for marketing exercises. Due to lack of these infrastructural offices, an advertiser entering the rural market has got to incur extra use or compromise on the quality in either case it is the rustic client who endures, within the frame of higher costs and destitute quality. d. Costly channel of Distribution – A long channel naturally implies an expensive channel as an expansive no of agents are to be given their commission, moreover, bigger the channel, bigger the number of authoritative problems. e. Heavy reliance on middle people – As distant as provincial marketing is concerned there's exceptionally small or no scope for the producers to approach the clients straightforwardly. Hence they have no choice but to depend upon the intermediaries. f. Feeble practicality of retail outlets – Rural markets are scattered, as such a huge number of retail outlets are required to cover these markets. In addition the rural areas are much more daintily populated as compared to urban ranges. In this way these retail outlets are not commercially practical. Include to this a expansive number of mediators, the picture at that point is anything but rosy. g. Non-availability of merchants – One of the major issues faced is the non-availability of merchants within the provincial advertise. The producers have no choice but to form do with the accessible dealers. h. Non-availability of keeping money and Credit offices – Retailers require credit offices in case they are to extend credit to their clients. In the event that this office isn't accessible it'll result in restricted stock carrying and constrained commerce. This fundamental office is additionally not accessible within the provincial areas. i. Getting sales representatives to work in rural areas – Those sales representatives will be fruitful within the rustic zones that will mix and blend with the rustic populace. Not only is this an awfully troublesome errand for the urban sales representatives, but few urban business people are willing to move to the rustic areas. j. Matching with cultural contrasts – The rural market itself may be a different overlap of different cultures. It is exceptionally troublesome for any business people to master the diverse social heritages existing within the diverse rustic areas. k. Command over nearby dialects – Within the tremendous rustic zones of India a number of distinctive dialects is talked. This moreover makes a problem for the salesman. l. More prominent imagination – The work of a nation deals agent gets to be more troublesome since various a times the things that he must offer are totally modern to the rural customer. Along these lines it requires a more noteworthy imagination on his parcel in case he is to perform his work of making needs, needs and desires. Barriers emerging 51 CU IDOL SELF LEARNING MATERIAL (SLM)

out of rustic showcase structure – The rural market structure is such that it is exceptionally different, scattered and full of individuals with distinctive dialects and societies. In this way no advertising or limited time writing can be made accessible in any one dialect for the complete rural market. A number of nearby dialects ought to be utilized. Encourage the rate of lack of education within the rural market is exceptionally tall and hence the printed communication has small or no effect on the rural markets. m. Barriers emerging out of accessible media – Indeed in spite of the fact that media such as radio, TV, cinema, print and open air publicizing are accessible within the rural areas, none of these incorporates a add up to scope of the whole country zone. Indeed in spite of the fact that radio covers 90% of the country zones its real listenership is very lower. TV covers 27%, cinema as well has its share but not more than 35%, while print media covers 20% of the rural populace. Open air promoting has its possibilities. In this way the genuine issue here is that of selecting the proper media mix. n. Classification & Division: Market segmentation in rural showcasing is more critical than maybe indeed in urban marketing. Typically since there's an incredible sum of differing qualities within the different country markets. They are by no implies homogeneous. Advance distinguishing and developing provincial markets requires a colossal sum of speculation and thus due significance ought to be given to this angle. There are different bases on which a rural market can be segmented. o. Quality versus amount, esteem recognition: A rural customer just like the urban customer needs quality at a lower price. In this way this perspective must be borne in intellect. Be that as it may, the country client features a moo acquiring power and constrained capacity capacity and subsequently favours to purchase in little parcels and little bundles. Hence this angle should be given due consideration. As the rural customer is poor it would pay the company to come out with cheaper items for this specific advertise. Indeed in spite of the fact that the rural customer is by presently utilized to branded items he is more carried away by the cost figure. Assist he gives more significance to territorial or nearby brands. In this way whereas taking a decision to present a specific item within the rural market; these contemplations ought to be paid consideration to whereas choosing upon the changes to be made within the item. 2.3 COMPONENTS OF RURAL MARKET • The average salary for male representative in rural area was the most elevated amid the months of April to June 2019 at approximately 13.7 thousand Indian rupees. Female 52 CU IDOL SELF LEARNING MATERIAL (SLM)

laborers gotten lesser compensation than male laborers, the male laborers earned about 1.4 to 1.7 times the profit of a female laborer. The normal compensation drawn by female laborers was the most noteworthy within the months of October to December 2018. As per IMRB (Indian Showcase Inquire about Bureau) and NCAER “(National Chamber for Connected Financial Investigate) rural consumers profile is: • Literacy: 23% of country Indian population is literate and individuals are getting included to this list year after year. There are still a few towns which are immature. Greatest instruction is essential school or in a few cases tall school. To this gather the marketing special strategy to be received is exhibit of item highlights and focal points. Print media and blurbs don't make any affect. • Income: An average rural customer encompasses a much lower income than his urban partner. The expendable salary has expanded within the later a long time to significant degree. In show disdain toward of this, the common characteristics of country buyers are moo obtaining control, moo standard of living, low per capita wage and low financial and social positions. • Density: Rural population is scattered over 7 lakh towns. This infers that rural demand is scattered and urban request is concentrated. • Influencers: There are many reference bunches in a town. These incorporate educator, specialist, panchayat individuals, wellbeing laborers, bank chief and co-operative board laborers. These influencers have to be kept in intellect when an advertiser chooses on rural marketing. • Occupation: Main occupation is farming. The measure and possession of arrive decides the premise for separation and utilization designs. • Culture: Rural consumers are conventional in their viewpoint. They relate quicker with messages that coordinate their social behavior. • Language: English isn't a dialect of rustic India. Thus an advertiser ought to aim for communication within the nearby language. • Media Propensities: Tv, radio, video and theater are a few of the conventional media that a rustic shopper distinguishes with 2.4 CLASSIFICATION The rural marketing structure isn't uniform in all parts of the nation. The sort of structure prevalent in a specific State or Locale depends on various factors just like the state of advancement of agriculture, condition of transport and communication offices, obtaining control of population, etc. 53 CU IDOL SELF LEARNING MATERIAL (SLM)

Rural markets of India can be broadly categorized into three types. They are: Type # 1. Periodic Markets: Periodic markets are the vital characteristic highlight of the rustic promoting in India. In show disdain toward of urbanization and advancement of retail stores, intermittent markets are moreover playing an imperative part in rustic economy as well as in social life of the rural masses. The intermittent promoting work is performed by two teach, viz., fairs, and week after week markets. A reasonable signifies a gathering of individuals who assemble at standard interims in certain settled places—generally around sanctums or other devout educate. In spite of the fact that, by distant the biggest number of fairs have a devout foundation, there are a few which owe at that point beginning to absolutely financial considerations. A common concept with respect to Motel is that they are essentially an event for the amusement of provincial people. These fairs give an opportunity for rustic individuals for annually and half-yearly, some of the time be-biennial or once in 12 a long time like that of Kumbha-Mela, Godavari Pushkarmas, etc. The buy and deal of merchandise, etc. The vital fairs draw individuals not as it were from surround-ing tracts, but too from exceptionally removed places. There are approximately 1700 fairs organized in several parts of the nation involving produce conjointly livestock. There are many fairs which are attended by a number of lakhs of population and there are others which are gone to by a couple of thousands. On an normal, the participation per reasonable works out at almost 16,000. The periodicity of reasonable changes from one reasonable in one state with that of another in other States too from one locale to another inside the State. The time plan of a admission may shift between 1 day to 7 days. The various types of fairs include: i. On the basis of Primary Purpose: (a) Religious fair, (b) Commercial fair, (c) Commodity fair, (d) Cattle fair, (e) Exhibition fair, and (f) Mixed fair. ii. On the basis of the periodicity: (a) One-day fair, (b) Short- duration fair, and (c) Long-duration fair. iii. On the basis of their importance or area of influence: 54 CU IDOL SELF LEARNING MATERIAL (SLM)

(a) Local fair, (b) Regional fair, (c) Inter-regional fair or national fairs Now-a-days universal fairs are too organized by the Governments. Celebrations of India, organized by the Government of India in vital cities of a few nations like USA, France and Germany, etc., have a place to this category. Be that as it may, with the alter in rustic economy, the design of shopping in fairs has moreover been changed. The improvement of lasting shops in rustic regions and simple contact with towns have moreover changed the shopping hone of the provincial individuals. But the significance of fairs is still the same, due to behavioral design of provincial individuals who continuously hold up for the buy of numerous things. The State Governments are too making a difference in popularizing the fairs. Paintings, caps, shandies, bazaars are diverse names utilized in different parts of the nation to assign periodical markets held more often than not once or twice a week and in a few cases indeed regularly. They are commonly known as week by week markets. Be that as it may, there's slight qualification between these terms. For illustration, the term paints, is utilized in joined together territory to indicate a periodical advertise managing more in rural deliver than in animals, though in a cap the invert is the case. As the merchandise and administrations of every day advertise or lasting shops are not accessible in inaccessible rustic zones, most of the towns are not associated with all-weather streets. Included to this, the state of agriculture is subsistence, laborers got to arrange their pitiful surpluses on one hand and need to buy restricted fabricated goods on the others made out of this circumstance in provincial zones are week by week markets, and to buy their everyday utilization merchandise. An occasional advertise could be an open gathering of buyers and dealers of commodities assembly an named or standard area at standard interims. In spite of the fact that the time shifts between diverse districts, in most of the cases these meet once in a week. The number of caps or week by week markets held in different parts of the nation are evaluated around 22,000. These markets are found in more prominent numbers (80%) within the eastern and north eastern districts of the nation comprising Assam, Bengal, Bihar, Joined together Territories and Central Province. Out of the States, Hyderabad State involves the primary position with as numerous as 1,000 caps. Gwalior, Travancore, Mysore and Bhopal taken after with 300,225, and 200 caps respectively. Most of the week by week markets serve an range inside a span of 8 to 16 kms. In a few States like Maharashtra and Tamil Nadu, these markets serve a bigger zone whereas in northeastern states these serve a littler zone. Exchanges are generally on cash premise in spite of the fact that the bargain framework is still in practice. The volume of deliver exchanged, commodities exchanged, number of towns and the populace served by the week after week markets contrast significantly from State to State and 55 CU IDOL SELF LEARNING MATERIAL (SLM)

from showcase to advertise inside the same State. For case, the number of towns served shifts from 27 within the case of markets in Andhra Pradesh to 277 in case of markets in Bihar. In terms of the populace served, the variety is 40,000 in regard of a showcase in Andhra Pradesh to 1,83,000 within the case of showcase in Gujarat. However, the week after week markets at the town level are by and large destitute of most of the advertise offices. The shoppers are subjected so numerous misbehaviors reveled in by the dealers both in purchasing ranches deliver from the rustic masses additionally in offering their required customer merchandise to them. In show disdain toward of this, these markets serve as an imperative promoting institution in rustic ranges. Most of the rural work who get their compensation once in a week visit these markets and buy their utilization goods. Type # 2. Mobile Traders: There's another critical organization known as mobile dealers to fulfill the limited needs like vegetables, natural products, dress, utensils, makeup, flavors, toiletries etc. of country buyers. The practice of mobile trading isn't a unused one, but indeed in antiquated India this marvel was common. The portable dealers are those merchants who move from one put to another, from one house to another in arrange to offer those commodities which are often required by rural masses. Because it is properly watched by Stine, vital reason for the presence of versatile dealer is that when the most extreme run is littler than the threshold prerequisite of the firm, the firm either ceases to operate or else it gets to be mobile. Indeed in those towns where there are changeless shops and week after week markets, there's a stage for mobile traders since of behavioral design of provincial masses. Mobile dealers move from one town to another on foot or bike or buses, bullock carts, etc. They visit the towns once or twice in a week. In some cases, they visit those towns which are on the way of week after week markets in return course after going to these week after week markets. While moving from one house to another inside the town they loudly report the title of the product which they offer such as chadar, (bed sheet), pandlu (natural products), gajulu (Bangles), palu, perugu (drain and curd), etc. There will be as well such wheeling and dealing in cost obsession. The installment is made either in cash or in kind within the frame of nourishment grains. Some of the time these dealers amplify credit up to periods harvests. Mobile traders move in bunches or 3 to 5 people carrying distinctive sorts or comparable sorts of articles. They move as it were in those parts of the town, they have chosen at the time of the passage. Female mobile traders are moreover found essentially managing in beauty care products, utensils, toiletries, plastic products, flavors, etc. During gathering season, the recurrence of visits by versatile dealers is more. Most of these dealers have a place to certain castes like Poosala in Andhra Pradesh. These versatile traders are an necessarily portion of the rural marketing system. Type # 3. Permanent Retail Shops: 56 CU IDOL SELF LEARNING MATERIAL (SLM)

Lasting retail shops are created as the populace of towns expanded, their livelihoods made strides, the request for merchandise which as well on day by day basis expanded. The conventional fairs, week by week markets or sellers were not able to meet the circumstance and this driven to the rise and development of lasting shops. Permanent shops were set up as a result of the request of the country inhabitants fundamentally of the same town. The number of shops, their different shapes generally depends upon the measure of the populace of the town, their earnings, obtaining control, their inclinations, etc. In the Indian setting, the foremost modern sorts of retail outlets comparable to that of western nations are found in metropolitan cities, whereas in country ranges (with populace less than 10,000), as it were the conventional free common stores or small-scale retailing are prevailing. In rural areas, as it were conventional strategies of dissemination, i.e., distributer and retailers are working as normal. The advanced strategies of conveyance, such as chain stores, super markets and establishment shops are not existing in provincial regions since of little measure of towns and lower pay of provincial folk. 2.5 SUMMARY  Rural Markets in India are tremendous, geologically scattered and assorted. With the development in rustic earnings and the higher obtaining control exuding from the same, rustic markets have developed as the unused goal of marketers curious about progressing their market offers. The opportunity, be that as it may, isn't free from a few overwhelming challenges.  It is well caught on that as a generally undiscovered domain, the markets would compensate the early participants, particularly those who move in with a few understanding of the provincial shopper and markets. Moreover, the change in rural transport and warehousing and capacity offices ought to be concentrated impressively as to require max men advantage of rural division by applying most recent strategies of marketing. 2.6 KEYWORDS  Economic environment: The economic environment alludes to all the economic variables that influence commercial and shopper behaviour. The economic environment comprises of all the outside variables within the quick commercial center and the broader economy. These variables can impact a trade, i.e., how it works and how fruitful it might become.  Market environment: The showcase environment or business environment could be a promoting term and alludes to variables and powers that influence a firm’s capacity to construct and keep up effective client connections and over which firm’s has no control. 57 CU IDOL SELF LEARNING MATERIAL (SLM)

2.7 LEARNING ACTIVITY 1. Compare the marketing mix of the products being sold in the rural fairs with the ones being sold in urban areas. What do you observe? ___________________________________________________________________________ ___________________________________________________________________________ 2. How are rural fairs, haats, melas promoted? ___________________________________________________________________________ ___________________________________________________________________________ 2.8 UNIT END QUESTIONS 58 A. Descriptive Questions Short Questions 1. Who are barefoot agents? 2. What are periodical markets? 3. What is the value perception of rural consumer? 4. By what names do rural consumers refer to periodical markets? 5. Is the distribution system same for rural and urban markets? Long Questions 1. What are different factors affecting rural marketing in India? 2. Critically analyse the present state of rural marketing in India. 3. Discuss the Business Environment in Rural India. 4. Describe the challenges in Indian Rural Market. 5. What are the nature and characteristics of Rural Market? B. Multiple Choice Questions 1. The literacy rate is on the ..................... in the rural areas. a. increase b. decrease c. average CU IDOL SELF LEARNING MATERIAL (SLM)

d. low 2. ……….. is the process of creating distribution chains of goods and services in the rural areas for the customers in the rural areas, and trying the sales promotion and meeting the needs of the people there? a. Urban marketing b. Semi-urban marketing c. Rural marketing d. Marketing 3. A feature of rural marketing is the large and ……….. market. a. attractive b. neat c. limited d. scattered 4. Rural marketing leads to direct agricultural production to ……….. areas. a. rural b. social c. urban d. semi-urban 5. ………… are unique types of temporary periodical markets available in rural areas. a. Haats b. Melas c. Mandi d. All of these Answers: 1-a, 2-c, 3-d, 4-c, 5-d 2.9 REFERENCES Textbook Reference 59 CU IDOL SELF LEARNING MATERIAL (SLM)

 Principles of Marketing: Marketing and Salesmanship–II Dr. Mahesh Kulkarni, Dr. Pramod Biyani.  http://indianresearchjournals.com/pdf/APJMMR/2013/September/7.pdf 60 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 3: CLASSIFICATION OF RURAL MARKETS Structure 3.0 Learning Objectives 3.1 Introduction 3.2 Generic classification based on ownership 3.3 Consumer market 3.4 Industrial market 3.5 Service market 3.6 Difference between Rural and Urban Market 3.7 Summary 3.8 Keywords 3.9 Learning Activity 3.10 Unit End Questions 3.11 References 3.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Explain the underlying marketing concepts with reference to the Unit topic  Apply generic marketing concepts to rural market context  Get familiarized with variables peculiar to a rural market 3.1 INTRODUCTION The Rural Marketing comprises the agricultural produce marketed from rural areas and durable and nondurable consumer goods produced in rural as well as urban areas along with services. Indian economy is rural economy. Therefore, India has a lot scope for rural markets. The Indian economy can be classified into rural and urban sector. Rural sector again can be classified into agricultural and non-agricultural sectors. Crop cultivation, animal husbandry, dairying, fisheries, poultry and forestry are coming under agricultural sector. Industry, business and services come under non-agricultural sector. Rural markets have certain unique features. Low literacy, seasonal income, less organized, low level of exposure, joint family system, more restrictions in the life styles 12 and decision making are some of the important features of rural markets. There is a vast difference between rural markets and urban markets. The purchasing power of people in the rural market is comparatively low. They are more 61 CU IDOL SELF LEARNING MATERIAL (SLM)

conventional and hesitant to receive alter. Individuals within the urban markets are just opposite of individuals within the provincial markets. Be that as it may, medias are presently diminishing the contrasts essentially. Indeed rustic individuals get get to many electronic media. This increments their mindfulness additionally presently a part of changes have taken put in their way of life. 3.2 GENERIC CLASSIFICATION The study on ownership of goods indicates the same trend. It segments durables under three groups: (1) Necessary products - Transistors, wristwatch and bicycle, (2) Emerging products – Black and White TV and cassette recorder, (3) Lifestyle products – Colour TV and refrigerators. Marketers need to depend on rural India for the primary two categories for growth and measure. Indeed in way of life items, provincial India will be critical over next five a long time. The price-sensitivity of a buyer in a village is something the marketers ought to be lively to. It is very troublesome to set up a request design in rural markets as the disposable pay is dependent on monsoon. Classification of Markets The various basis on which rural markets may be classified are: 1. Frequency On the basis of the frequency at which the markets are held, they can be classified as daily, weekly, fortnightly, etc. 2. Types of products traded Different markets deal with different items. Whereas a few might bargain with all items, some markets might specialize in a few items. On the premise of the sort of item exchanged, they can be named as Grain markets, Cotton markets, Natural product & Vegetable markets, etc. It is important to quote ‘gur mandi, twelve mandi etc.’ in Ludhiana and Amritsar. They specialize in one single product as it were, in spite of the fact that now-a-days they are dealing with other items also. 3. Types of transaction On the premise of their exchanges, the rural markets can be classified as spot and forward markets. The spot markets embrace those exchanges as it were in which the trade is influenced at the current costs; whereas within the forward markets, the commodities are traded for future conveyance. End of the markets take after with the longer term trading system of stock market. 62 CU IDOL SELF LEARNING MATERIAL (SLM)

4. Area Served Depending upon the sort of area served, the agrarian markets can be classified as Nearby, Central, etc. The neighborhood markets cater to the requirements of as it were the neighborhood population, whereas the central markets are found within the city center and cater to desires of the complete city or the region. The latter are much greater in estimate and zone of operation. Other bases of classification It may, in any case, be famous that there's no rigidity in these classifications and one classification covers the other. Be that as it may, for our discourse, let us classify agricultural markets into essential, auxiliary and terminal markets. (1) Primary Markets These are periodical markets locally known as ‘Haats’. They are for the most part held once or twice a week. The days on which these markets meet are settled so that dealers can visit the region. They are for the most part held within the open and along roadsides in imperative or centrally arranged localities. These markets are arranged within the creating zones and commodities created within the encompassing tracts are basically sold in them. A portion of the deliver is obtained by the little retailers who, advance, offer it to the non-farm rural populace. Amid the incline season, a portion of the create could be sold back to the cultivators themselves. The rest of the deliver is obtained by middle people and finds its way to the wholesale market. Other than agricultural produce, a number of other articles required by rural folk such as salt, tobacco, oils, gur, natural products and vegetables, flavors, cloth, hosiery items and decorations of cheap metals are too sold in these markets. These markets as a rule serve an region of 10 kms sweep but it may be more, extending from 10 to 50 kms, depending upon the accessibility of communication and transportation offices, nature of commodities dealt with and the area of the market with regard to other markets. The fundamental work of these markets is to serve as amassing centres for the nearby create but they too work at the same time as distributive centres for nearby utilization. In spite of the fact that, these markets are unorganized, they do, serve the valuable reason of giving a common assembly put for buyers and sellers. In show disdain toward of being arranged in provincial zones, the costs administering in these markets are influenced by those winning within the discount markets. (2) Secondary markets These markets, moreover known as ‘Mandis’, are normal discount markets and give a lasting put for day by day exchanges. The work begins in them early morning and proceeds till all exchanges are over. These markets are for the most part arranged within the towns, locale, and important exchange centres. More often than not they are arranged close railroad stations. Shops or ‘Arhats’ are built in these markets. Postal, Keeping money and phone offices are accessible at such places. (3) Terminal Markets 63 CU IDOL SELF LEARNING MATERIAL (SLM)

A terminal market is the put where the deliver is either at long last arranged of to the shopper or to the processor or gathered for sends out. Such markets are ordinarily arranged in metropolitan cities like Delhi, Bombay, Madras and Calcutta etc. In these markets, vendors were well organized and utilize modern marketing methods. (4) Regulated markets A controlled market is set up beneath the law either for a particular product or a bunch of commodities. These markets are set up beneath the APMC Acts of State governments. This market is managed by a showcase committee which comprises of agent of the State Government, the lawful bodies (just like the Area Board), the dealers and the agriculturists themselves. The committee is named by the government for a settled period for administration of the advertise. The committee fixes the advertise charges just like the commission etc. it guarantees that no ‘dalal’ speaks to either the buyer or the seller. The committee anticipates unauthorized derivations from the cost paid to the agriculturist and guarantees that redress weights and measures are utilized. The committee is dependable for the permitting of brokers and weigh men and is engaged to rebuff anybody found blameworthy of unscrupulous and false hones. It listens all the complaints and in case of debate, it arranges for arbitration. The chairman and Vice-Chairman of the Committee are from the cultivating community. The controlled market framework has demonstrated a great source of producing pay for the promoting sheets and this wage is utilized for making rustic foundation. Directed markets prevail in regions where commercial or non-traditional crops are developed. Cooperative marketing and conveyance and managing an account are too connected with the controlled markets. At show, about 80 per cent of agricultural produce is sold in directed markets. Controlled showcase is discount advertise where buying and offering is directed and controlled by the state government through the market committee. It points at the disposal of undesirable and corrupt hones diminishing marketing charges and giving offices to makers and venders within the advertise. The destitute guidelines of essential and auxiliary markets where maker change over their deliver into cash. The predominance of different malpractice's such as short-weights, intemperate showcase charges, unauthorized conclusion, contaminated of deliver and the absence of apparatus to settle debate between sellers and buyers were recognized as the most preventions in agricultural marketing. These defects and misbehaviors can be recovering by the foundation of directed showcasing their nation may be directed either by nearby bodies or beneath state legislation was proposed to begin with in 1928 by the Illustrious commission on Agriculture. The development of direction of showcase picked up energy as it were after 1930. The Bombay Agricultural produce advertise act of 1939 was passed in regard all farming deliver Viz., cereals, fibers and fruits etc. Controlled markets ordinarily handle tobacco, cotton, groundnut, grains, coconuts, arecanuts, potatoes and turmeric etc. 64 CU IDOL SELF LEARNING MATERIAL (SLM)

Salient features of regulated market include: Advertise Committee: Market committee is comprised of agents from diverse divisions of society that's farmers, dealers, government nearby bodies and cooperative. In common it is watched that advertise committee comprises of 15 individuals 10 from farmers 3 from dealers and 1 each from the government and neighborhood bodies. Area of Operation: The concerned state government informs that its purposeful to control exchange hones in indicated region such an zone of operation is laid down either as a civil constrain or area or indeed it may be a locale. In Maharashtra area of operation of each regulated market restricted to one taluka. Strategies of Deal: In directed market the deal of Agri deliver. Deliver is attempted either by open sell off or by near delicate strategy these deals strategy guarantee a reasonable and competitive cost for the delivery and avoid the cheating of agriculturists by advertise functionaries. By these strategies, the deal is carried out beneath the supervision of an official of the advertise committee. Licensing Of Market Functionaries: All the market functionaries including dealers working within the controlled showcase need to get a permit from the advertise committee after paying the endorsed expense to carry on their trade, the authorized dealers ought to keep appropriate record and keep up accounts in agreement with the buy-laws of the showcase committee. Market Demands or Expenses: Producers and traders have to be pay showcase expenses which are calculated on the premise of value of volume of a product bought and sold within the markets. Now and then it may be based on cartload or truckload. To meet its regulatory use and in arrange to make framework offices within the advertise region the showcase committees get stores from the taking after sources: advertise expenses on the create brought for the deals within the advertise yard and permit charge, reestablishment charge of advertise go between working within the range. Settlement Of Debate: Debate emerging between maker vender and dealers by reason of the quality of the maker, accounts and findings of unauthorized charges are illuminated by the sub-committee of the showcase committee this dodge the legitimate complications and pointless consumption. Advantages of regulated markets: - 1. Market charges are clearly characterized and indicated. 2. Market practices are controlled and undesirable exercises are brought under control. 3. Correct weighment is guaranteed by periodical assessment and confirmation of scales and weights. 4. Reasonable courses of action for the settlement of debate is given. 65 CU IDOL SELF LEARNING MATERIAL (SLM)

5. Solid and up to date market news are made accessible to the ranchers. 6. Appropriate quality measures and standard terms for buying and offering are helpfully upheld. 7. Reliable insights of entries, stocks, costs are kept up. 8. Other offices like shades for the deal of deliver, space for stopping carts, drinking water offices and cisterns of cattle, rest houses, reviewing and warehousing offices are given. 9. Open sell off strategy is entirely taken after. 10. Propaganda for rural change is more helpfully carried out. Taking over all picture controlled markets have created a entirety a few impact on promoting structure and have for the most part raised the efficiency or promoting at the essential level. Organization of controlled markets and structure of advertise committee The essential question of controlling the advertise is to protect the intrigued of the maker venders raise the guidelines of the nearby Markets where the primary trade of the products takes place. With a see to realize the question in each of the directed markets. Advertise committees are built up comprising of the agents of the producers, dealers, neighborhood bodies, dealers, agreeable shops and the state government chosen people. Producers are generally in the majority on these committees. Composition: The market committee ought to comprise of 12 to 18 individuals depending on the measure of the market and other contemplations, which are capable for utilizing the support for a. Support and enhancement of the markets and its buildings. b. Upkeep of measures of weights and measures. c. Pay and annuity of the staff d. Installment of interface of advances. e. Collection and dispersal of advertise data. Defects Of Regulated Markets These markets have demonstrated a boon for ranchers over the a long time indeed since they are being set up since 1951. There are about 8,500 such markets within the nation Be that as it may, with changing times, these markets have been uncovered to a few genuine confinements as takes after. a. Disappointment to embrace unused imaginative showcase innovations. b. They have not made a difference in trade of advertise data. c. They have confined smooth supply of crude materials for agro makers. d. They have limited improvement of elective frame of markets. 66 CU IDOL SELF LEARNING MATERIAL (SLM)

e. They have become as well monopolistic within the sense that the specialists don't allow interchange and competitive markets in an region where there's directed advertise. f. Also, no exchange is allowed exterior the controlled advertise. For any such exchange, one should get a permit and pay essential expense to the showcase committee. g. Cold capacity offices exist in less than 10 percent of these markets which suggests destitute foundation. h. Evaluating, cleaning and standardization offices exist in fair one third of these markets. In see of these restrictions and issues relating to directed markets, the middle set up Shankar Master Committee in 2001 additionally set up an inter-ministerial master bunch to survey the framework of controlled markets. These committees, inter-alia, made the taking after perceptions and suggestions.  These markets have ended up as well prohibitive and rather than advancing free and reasonable play advertise strengths, have ended up as well monopolistic.  These markets have fizzled to reflect circumstances of shortage or bounty and especially in regard of nourishment grains have driven to stock heaping by FCI.  Government mediation in agrarian markets ought to be particular and limited as it were to circumstances of extraordinary shortage.  Basic Commodities Act ought to be cancelled.  Government ought to survey all the important legislations relating to rural promoting. Based on these, the Middle ordered a show APMC Act in 2003 encouraging State governments to receive this, enactment by carrying out reasonable revisions in their APMC Acts. The show APMC Act 2003 has three major goals viz, deregulation of agriculture markets making these markets competitive and allowing private segment speculation in market foundation. Notable highlights of the Demonstrate Act are as takes after: • Agriculturists and dealers ought to not be allowed to offer their create in directed advertise • Agriculturists and dealers ought to be allowed to set up buy centers for coordinate deal of their deliver to customers. • States ought to empower ranchers, dealers, nearby specialists to set up parallel markets. Separate markets ought to be set up for perishable commodities like natural products and vegetables. • Open private organization ought to be energized in administration and advancement of agricultural markets. • There ought to be control and advancement of contract farming. Controlled markets are overwhelmed by middle people and go between. The tall costs of intermediation have a cascading impact on costs. The committee on Agriculture Changes set up in 2013 suggested, 67 CU IDOL SELF LEARNING MATERIAL (SLM)

inter-alia, a barrier-free national market for the advantage of farmers and consumers. The committee famous that by and huge, the APMCs have developed as a few sort of government supported restraining infrastructures in supply of promoting services/facilities with all downsides and wastefulness related with an imposing business model. Hence, the APMC Act has not accomplished the fundamental objective of setting up a organize of physical markets. There are a few fruitful activities in coordinate promoting, such as April Mandi In Punjab, Uzhavar Sandhai in Tamil Nadu, Shetkari Bazaar in Maharashtra, Hadaspur Vegetable advertise in Pune, Rythu Bazaar in Andhra Pradesh, Krushak Bazaar in Odisha and Kisan Mandi In Rajasthan. 3.3 CONSUMER MARKET The buyer market comprises of those individuals who are the end-users and they don’t exchange the item or benefit any advance. We see items and buyers all over within the market. Whenever an individual buys an item, at that point he gets to be a portion of the shopper market. Able to categorize the complete customer advertise into four types; retail, transportation, nourishment, and beverages (drinks). Buyers ordinarily make their possess choices at whatever point they need to purchase something within the market. Marketing and promoting play a really critical part in affecting the buying choice of the consumers; it tells them which item to select by teaching them around the item. When it comes to choosing the product, individuals favor brand items since of the steadfast. Brand loyalty doesn’t fair happen; marketers do a parcel of investigate to discover pertinent data almost their advertise and after that target them through TV advertisements and other special activities. The customer market is totally distinctive from the commerce advertise since of the distinction within the marketing strategy. Marketers separate the consumer market into diverse sections depending upon the characteristics, socioeconomics, and behavior and psychographic of the customer. After partitioning the market into diverse sections, they target the intrigued, likes, and disdains conclusion and values of the consumers. For occurrence, once you purchase a few nourishment or drink frame the basic need retail store, at that point you’re doing an action of the consumer market. These markets contain of people and families. They include products which are utilized for last utilization or utilize such as: write, tobacco, tea, medications, clothing, footwear, furniture, utensils, cleanser and hair- oil etc. Products: Consumables, Nourishment- Items, Toiletries, Beauty care products, Materials and Articles of clothing, Footwear etc. Products: Consumables, Food- Products, Toiletries, Cosmetics, Textiles and Garments, Footwear etc. Durables: Watches, Bicycles, Radio, T.V, Kitchen Appliances Furniture, Sewing Machines, Two-Wheeler etc. 68 CU IDOL SELF LEARNING MATERIAL (SLM)

A study conducted by NCAER showed that rural purchasing is very significant for a variety of products. The percentage of rural consumption is as follows: (i) Table and convenient radios, bikes, mechanical wrist observes and cigarettes - over 70 per cent. (ii) Washing cakes, casual and PVC footwear, tooth powder, and cooking oils - 60 to 70 per cent. (iii) Table fans, sewing machines, engine cycles, lamp fuel stoves, ghee, vanaspati, calfskin footwear, tea and latrine cleanser - 50 to 60 per cent. (iv) Quartz wrist observes, ceiling fans, dark and white TV sets, mopeds, cassette recorders, washing powder, rolls and coffee control - 40 to 50 per cent. (v) Pressure cookers, electric stoves, toothpaste, coffee beans, electric bulbs and wellbeing refreshments - 30 to 40 per cent.Scooters, pedestal fans, mixer-grinders, moulded suitcases, vanishing cream, and cold cream - 20 to 30 per cent. (vi) Scooters, platform fans, mixer-grinders, shaped bags, vanishing cream, and cold cream - 20 to 30 per cent. (vii) Colour TV sets, fridges and gas stoves - 10 to 20 per cent. (viii) Washing machines, underneath 10 per cent (numerous items don't highlight as these were not checked). A fast see at the items uncovers the needs in utilization. Comfort items take moment put to cleanliness, wellbeing, magnificence, great preparing, transportation, excitement and item versatility. Be that as it may, these utilization figures are as it were a division of the existing potential, and are characteristic of the gigantic advertise holding up to be tapped. The holes are huge and demonstrate the potential. Bikes, convenient radios Quartz wrist observes, ceiling fans. Table fans, mechanical wrist observes, weight cookers, sewing machines. Table radios, two-in-one mono recorders, dark and white TV sets 11 Little dark and white TV sets, blender processor, two-in-one stereo players, mopeds, bikes, bikes, colour TV sets, refrigerators. 3.4 INDUSTRIAL MARKET Industrial marketing happens when one trade tries to offer industrial items or services to another. For clarity, an industrial item or benefit is anything that makes a difference deliver an conclusion item from crude materials. It’s a shape of B2B showcasing, but since of the nature of what’s being sold, an industrial marketing campaign requires a tall level of item knowledge. Constituents : Rural and united exercises, poultry cultivating, angling, Creature cultivation, Cabin Businesses, Wellbeing center, School, Co-operatives, Panchayat office etc. Products: Consumables, seeds, Fertilizers, Pesticides, Creature nourish, Fishnets, Medications, Petrol diesel etc. Durables: Tillers, Tractors, Pump sets, Generators, Collectors, Vessel etc. 69 CU IDOL SELF LEARNING MATERIAL (SLM)

In its simplest format, industrial marketing is known as B2B (business-to-business showcasing) and promotes products and administrations from one trade to another. Nowadays, industrial marketing is by and large done with online strategies and includes numerous complex components. Data appears that mechanical buyers are ordinarily 70% of the way through their buy choice prepare some time recently coming to out to a provider. That's since today's B2B buyers are for the most part millennials who are advanced locals and do all their online investigate namelessly online to begin with. Mechanical promoting starts with inquire about into these target gatherings of people and prospects to get it how to meet their needs, what sorts of substance, and where. Manufacturing customers need to see nitty gritty item data, your company history, where you are doing trade, and reviews/testimonials that support your company. They anticipate the substance they're inquiring about to be available on-demand, optimized for any gadget, intuitively, and profoundly visual. Does your site provide everything a prospect is trying to? find On the off chance that you replied yes, that's awesome! You're ahead of the amusement. But in case you're not sure, that's affirm — you'll as it were go up from here. Businesses can now not manage to disregard the control of digital marketing and the openings it provides. 3.5 SERVICES MARKET Services marketing may be a particular department of marketing. Services marketing emerged as a partitioned field of consider within the early 1980s, taking after the acknowledgment that the one of a kind characteristics of services required different procedures compared with the marketing of physical goods. Services promoting ordinarily alludes to both trade to buyer (B2C) and business-to-business (B2B) services, and incorporates promoting of services such as broadcast communications services, budgetary administrations, all sorts of neighborliness, tourism recreation and excitement administrations, car rental services, wellbeing care services and proficient administrations and exchange services. Service marketers frequently utilize an extended marketing blend which comprises of the seven Ps: item, cost, put, advancement, individuals, physical prove and prepare. A modern approach, known as service-dominant rationale, contends that the outline between items and services that endured all through the 20th century was counterfeit and has clouded that everybody offers benefit. The S-D rationale approach is changing the way that marketers get it value-creation and is changing concepts of the consumer's part in benefit conveyance processes. Constituents: People, Family units, workplaces and Generation firms. Services: Repairs, Transport, Managing an account credit, Protections, Healthcare, Instruction, communications, Control etc. possible solutions to Problems of Rural Markets 70 CU IDOL SELF LEARNING MATERIAL (SLM)

To solve the problems of rural markets in India, the following suggestions can be used by marketers. 1. With respect to the issues of physical distribution, the advertiser may have a joint arrange of stockiest/ clearing-cum-forwarding (C&F) operators at vital area for help of physical conveyance for its items within the rural market. The most advantage of this conspire is that the costs of physical dispersion can be shared by the companies and stockiest. The combination of distinctive modes of transport based on accessibility of trucks will be beneficial to the companies. By and by, bullock-cart plays an awfully crucial part in provincial conveyance where the streets are not accessible. A few of the driving companies utilize conveyance vans in rustic regions for settling the distribution issues in rustic advertise. The conveyance van takes the items to the retail shops in every corner of the rural market and it empowers the company to set up coordinate deals contact with lion's share of the rustic customers which makes a difference in deals advancement. 2. The rural market is composed of a number of retail deals outlets beside fair cost shops beneath the open conveyance framework. It is recommended that the government ought to energize private businesspeople and agreeable stores to come forward and build up their trade in rural zones rather than the week after week showcase known as week after week bazaar. Fertilizer companies have opened their outlets for appropriate dissemination of fertilizer among the ranchers. Essentially, the companies managing in consumer goods can apply this demonstrate. The company may moreover name a number of retailers in and around the feeder towns and connect them to the stockiest who disseminates the merchandise to the retailers as per the potential of the market. This system has the good thing about entering into the insides regions of the rustic markets. 3. To illuminate the issues of deals constrain management, it is recommended that the company takes due care within the enlistment and determination of deals individuals since the characteristics they require are diverse from urban and rural sales people. For the rustic markets, as it were those deals individuals ought to be considered for choices who are willing to work in country regions. They must be mindful of the nearby dialect and must have the tolerance to bargain with rural customers and can release the obligations of a bare-footed sales representative. Organization of such a huge and scattered deals drive, administering and supporting them in deals calls, directing them, going to their official and individual issues, and spurring them for superior comes about ought to be an demanding errand for the deals director. Hence, the individuals working in provincial ranges ought to perpetually be from the rustic foundation and ought to have a teacher enthusiasm to serve the rural masses. 4. With reference to marketing communication in rustic zones, the company ought to utilize organized media-mix like TV, Radio, cinema and POP (point of buy). Tv is picking up popularity within the rustic zones but due to destitute supply of power, radio is performing essentially superior. Since, the country individuals require show, brief highlight movies with masked notice messages, coordinate promotion movies and documentaries that combine 71 CU IDOL SELF LEARNING MATERIAL (SLM)

information and promotions will perform superior country marketing communication. Here the companies may moreover utilize varying media reputation vans, which may offer the items with advancement campaign. To pull in the rural buyers, companies can organize town fairs, move and drama appears, gather gatherings to persuade the country shoppers almost the items and services. In most Indian towns, there are a few conclusion pioneers. For the rural markets, as it were those deals individuals ought to be favored for choice who is willing to work in provincial regions like Sarpanch, Pradhan and other elderly people. They can be drawn nearer by the marketers to proliferate their messages; these people can demonstrate to be viable communicators inside the country masses. The country showcase in India is very intriguing and challenging in show disdain toward of all the challenges existing. The potential is colossal. Indeed in spite of the fact that, these markets have shortcomings they too have colossal openings which ought to be profited by the marketers. It is well known that “Markets are made and not born”. The market so made ought to be tapped successfully. An perfect case is that of LIC. The Life Protections Enterprise of India produces life protections trade by naming the protections operator from the town itself so that he can effectively persuade his close and expensive ones. LIC begun a conspire called Gram Vikas where the Sarpanch is given a target to offer a least 10 policy plans and the commission so earned is spent on the development of their respective villages. 3.6 RURAL VS URBAN MARKETS Urban and rural communities have verifiably had distinctive socioeconomics, interface and openings. Whereas the communications boom of the web is blurring the lines to some degree, there are still wide contrasts. These contrasts regularly require shifted promoting procedures for companies wishing to offer to both markets. It is imperative to get it why provincial promoting is diverse from urban promoting. Due to noteworthy differences in nearly all the major promoting factors, it gets to be exceptionally difficult to ideally tap the provincial showcase potential with an urban attitude. In most cases, it requires an adjusted approach, logic and marketing blend. Subsequently the space of rustic marketing is altogether diverse from the way marketing is arranged and executed in urban regions. The positive comes about accomplished by HLL‘s Venture Shakti, Colgate‘s Venture Jagaruti, etc., since they had organized their country marketing in terms of arranging, exertion, operations, particularly from their urban marketing. This proves the justification for treating and approaching rural marketing distinctively from urban marketing. 1. Infrastructure availability: power supply, accessibility of back office, instruction level, streets, network, and nearness of organized markets: In these infrastructural perspectives, the rustic showcase shifts broadly from the urban showcase. 2. Wage Streams: The design of pay era in country regions based on agribusiness is regular and profoundly questionable not at all like the settled month to month wage within the urban zones. This created a utilization design that's very diverse from the urban one. 72 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Way of life: The way of life and day by day schedule of customers in two markets is particularly distinctive. This makes essentially distinctive profile of urban and rustic buyers for the same item. 4. Setting: since of variety in framework, way of life and the wage angles, the setting in which an person exists in provincial ranges is exceptionally distinctive from the one urban ranges. This makes distinction in nature and needs of needs in two markets. 5. Socio-cultural foundation: Esteem framework and hence recognition towards goods/services and utilization in common is very diverse within the two markets. 6. Availability: The fetched and coordinations of getting to customers in an exceedingly broad and heterogeneous rural market are exceptionally diverse from those included in coming to urban consumers concentrated in great number in a single area. It requests two particular showcasing approaches. 7. Media reach and habits: The reach of media vehicles and the media propensities, changing broadly in country and urban markets, requires distinctive sort of limited time methodology in these two markets. 8. Nature of competition: the nature and escalated of competition among the brands is exceptionally diverse within the two markets. 9. Buyer behavior: The customer reaction to promoting boosts varies broadly in two markets. The rustic customer behavior is very distinctive from that of urban buyer behavior. 3.7 SUMMARY  In concision it can be said that the Indian rural market has developed in later a long time in measure, and modernity. This offers an enormous opportunity to Indian marketers. The rural market, be that as it may, still stay undiscovered due to scattered area of towns, moo profile of retail outlets, destitute marketing communications arrange, need of transport offices etc. The major methodologies ought to be limited on advancement and dissemination.  These ranges nave to be progressed to meet the challenges. The publicizing, advancement ought to be outlined to meet territorial variety. The reasonable nearby special exercises and convey approach ought to be connected to dispersion. Besides, the enhancement in provincial transport and warehousing and capacity offices ought to be concentrated significantly as to require max men advantage of country division by applying most recent methods of marketing. 3.8 KEYWORDS • Marketing: It may be a add up to framework outlined to arrange, cost, advance and disseminate need fulfilling items and services for target markets. 73 CU IDOL SELF LEARNING MATERIAL (SLM)

• Market: A market could be a put where individuals go to purchase or offer things. Obtaining capacity: It is the esteem that cash holds that permits individuals to buy more genuine products for less cash. • Urbanization: It alludes to the expanding number of individuals that live in urban areas. 3.9 LEARNING ACTIVITY 1. Differentiate between the products sold in a service market versus a consumer market in rural India. 2. What are the major fields of comparison between rural and urban markets? ___________________________________________________________________________ ___________________________________________________________________________ 3.10 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Describe the understanding on regulated markets? 2. Discuss the importance of service markets? 3. State meaning of primary markets? 4. Analyze the functions of secondary markets? 5. Cookware form a part of which type of rural market? Long Questions 1. What are the different types of rural markets? 2. How are rural markets classified in India? 3. What are the various points of similarities between rural and urban markets? 4. Is there a difference in the way you profile rural consumers. 5. Distinguish between Industrial and service market. B. Multiple Choice Questions 74 CU IDOL SELF LEARNING MATERIAL (SLM)

1. A major portion of the rural population consists of...........................income groups. a. Low b. high c. medium d. All of these 2. Many companies are now turning their attention to ..................... markets. a. Urban b. Rural c. world d. None of these 3. For rural marketing...................pricing is more suitable. a. Penetration b. skimming c. going rate d. None of these 4. Markets popularly known as haats and shandies are .................... markets. 75 a. Rural b. Urban c. National d. None of these 5. Permanent rural market with continuous trading activity is called…… a. Regular periodic market b. Seasonal market c. Daily market d. Rural market. Answers 1-a, 2-b, 3-a, 4-a, 5-c 3.11 REFENECES Text Book Reference CU IDOL SELF LEARNING MATERIAL (SLM)

 NCAER, New Perspectives in Marketing, New Delhi.  V.S. Ramaswamy and Namakumari S., Marketing Management, McMillan, Delhi, 1990 Website:  https://www.economicsdiscussion.net/marketing-management/rural-marketing-in- india/3195 76 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 4: RURAL MARKETING INDEX Structure 4.0 Learning Objectives 4.0 Introduction 4.1 Meaning of rural marketing index 4.2 components of Rural Marketing Index 4.3 Summary 4.4 Keywords 4.5 Learning Activity 4.6 Unit End Questions 4.7 References 4.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  State the underlying marketing concepts with reference to the Unit topic  Apply generic marketing concepts to rural market context  Get familiarized with variables peculiar to a rural market 4.1 INTRODUCTION Index number development may be an essential marketing tool. File numbers are statistics used for comparison which empower marketers to create numerous comparisons rapidly and effortlessly. Index numbers can be utilized numerous distinctive ways but most visit employments for record is to compare customer item utilization with a populace base, to superior get it the proportion and/or relationship between the populace and the utilization of a specific item or service. The compilation of a file might at that point be endeavored with farmers categorized into five prosperity levels, extending from exceptionally destitute to exceptionally prosperous. For example, In case the full potential buying populace, matured 35–44, isolated by the whole populace within the age gather = 12,512/74,975 = 16.7%. Number of users (based on marketing data) aged 35–44, divided by the total number of users: = 8,132/37,791 = 21.5%. 77 CU IDOL SELF LEARNING MATERIAL (SLM)

The index number thus is the percent of household decision-makers aged 35–44 (21.5 %), divided by the percent of population 35–44 using the product (16.7%). =21.5%/16.7% = 129 (index number). Estimates of the underserved population in rural areas, in any case, got to be diminished to an extraordinary degree, since a huge portion of the rural population essentially cannot be adjusted. Companies, in this way, got to diminish the number of individuals in rustic ranges that they can serve. Their calculations got to be diminished by the below-poverty-line or BPL populace, the Dalits and a few tribals and the ranges influenced by radicalism. We at that point discover that the country advertise opportunity is impressively decreased. 4.2 MEANING OF RURAL MARKETING INDEX The hinterlands in India comprise of approximately 650,000 towns. These towns are possessed by almost 850 million customers making up for approximately 70 per cent of populace and contributing around half of the country's Net Residential Item (GDP). Utilization designs in these rustic ranges are continuously changing to increasingly take after the utilization designs of urban zones. A few of India's biggest shopper companies serve one- third of their shoppers from country India. Owing to a positive changing utilization slant as well as the potential estimate of the advertise, rustic India gives an expansive and appealing venture opportunity for private companies. Agreeing to IBEF report, the Quick Moving Buyer Merchandise (FMCG) division in provincial and semi- urban India is assessed to cross US$ 100 billion by year 2025. The country FMCG advertise is expected to grow at a CAGR of 17.41 per cent to US$ 100 billion amid 2009–25. Provincial FMCG advertise accounts for 40 per cent of the in general FMCG market in India, in income terms. Moreover, among the driving retailers, Dabur creates over 40-45 per cent of its residential income from provincial deals. HUL rural income accounts for 45 per cent of its generally deals whereas other companies gain 30- 35 per cent of their incomes from rustic areas A noticeable way of measuring heterogeneity is division of rural customer markets. Segmentation is the method of separating a heterogeneous showcase into homogeneous sub-units. The division is based on the premises that distinctive individuals have distinctive preferences. The taking after are the fundamental advertise inclinations:  Homogeneous preferences where customers have generally the same inclinations • Diffused inclinations where shoppers are scattered all through the showcase by their inclinations.  Clustered inclinations where customers are found in particular inclination bunches. Rural market division can be done on different variables.  Occupational or sociological division is based on source and consistency of salary. In provincial markets, occupation decides pay and shapes a noteworthy premise for division. In spite of the fact that there are varieties over locales, around 40 percent of 78 CU IDOL SELF LEARNING MATERIAL (SLM)

provincial shoppers are locked in in agriculture, taken after by wage workers with 35 percent. This appears that about three-fourths population of rural India has unstable salary and depends on farming. Such salaries shift with monsoon and climatic conditions. Companies ought to plan advertising for buyers with unsteady wage. Offering merchandise on likened month to month portions (EMIs), which is popu¬lar with the urban salaried course, will cause trouble for rural consumers. Table 4.1 Occupational Pattern of Rural Population The occupations in rural areas (Table 3.9) are summed up as: i. Artisans, farm labourers – Consisting of carpenters, blacksmiths, craftsmen and labourers. ii. Small farmers – Farmers with very small holdings or with a share in jointly held farms. iii. Tenant farmers – Tenant farmers who work on leased or rented land to share the crops and income with owners of the land. iv. Medium level farmers – Farmers with economically efficient size of landholdings. v. Large farmers – Zamindars, rich money-lenders and people with very large, ancestral land. They also tend to be local leaders and politicians, with links in urban areas, giving their land on lease to tenant farmers. Thomson Rural Market Index (TRMI) Hindustan Thompson Partners Ltd. created TRMI as a direct to section markets within the rural areas in 1972 and moved forward it in 1986. They compiled an information out of 383 locale, based on 26 factors. Advance, they collected the esteem of agricultural output information for each area. Advertise Inquire about is done by market research companies and experts within the field to supply information almost utilization designs, buy preferences and provincial advertise potential. Hindustan Thompson Partners Restricted, a advertise investigate and promoting company in India considered the provincial regions in India in year 1972. HTAL made its report in 1972 and created by and large pointers of rustic showcase potential in India. These are known as Thompson Rural Market Record. HTAL compiled 79 CU IDOL SELF LEARNING MATERIAL (SLM)

information of 335 areas based on 26 quantifiable scale factors. HTAL collated information with respect to agrarian points of interest of yield in each area. It is considered to be the overall indicator of rural market potential as it has strong correlation with 10 selected agriculture-related variables viz., 1. Agricultural labourers 2. Gross cropped area 3. Gross irrigated area 4. Area under non-food crops 5. Pump sets 6. Fertilizer consumptions 7. Tractors 8. Rural credit 9. Rural deposits and 10. Villages electrified Based on the index number, the districts have been classified as A, B, C, D and E class of markets as shown in table below. Classification of Class of Markets Index Range No. of Percentage of Markets Districts Market A 60.00 to 100.00 22 17.8 B 40.00 to 59.99 39 20.5 C 30.00 to 39.99 54 20.4 D 20.00 to 29.99 86 23.0 E Below 20.00 154 18.3 Total 355 100.00 4.3 COMPONENTS OF RURAL MARKETING INDEX Mica Rural Market Ratings The MRMR may be a valuable marketing device and a mixed media direct to provincial India. It has been developed by the Mudra Established of Communications Ahmedabad (MICA) in affiliation with ML Infomap Pvt. Ltd., Unused Delhi. The rural market record 80 CU IDOL SELF LEARNING MATERIAL (SLM)

demonstrates the rural market potential of all the locale of India, analyzed on 42 factors. Utilizing computerized mapping innovation, it presents maps of all areas, shaded to demonstrate the level of advertise potential. Managers can in this way graphically see areas with distinctive designs of market potential, alongside related information such as bank credits, socioeconomics, framework, and so on. The instrument moreover gives area of ‘haats’, or genuine rustic markets. By clicking on a haat, one gets to know the days of the week the advertise takes place. Directing can be done through the street and railroad outline of India, which is joined within the software. Mudra Institute of Communication, Ahmedabad (MICA), ranks districts according to seven basic parameters like: i. Population ii. Bank advances iii. Cropped area iv. Irrigated area v. Number of cultivators vi. Fertilizer consumption and vii. Total value of agricultural output. Utilizing computerized mapping innovation, the MRMR instrument created by MICA presents maps of all areas, shaded to demonstrate the level of advertise potential. Managers can in this way graphically see zones with distinctive designs of showcase potential, alongside related information such as bank advances, socioeconomics, framework, and so on. The instrument too gives area of ‘haats’, or genuine rustic markets. By clicking on a haat, one gets to know the days of the week the advertise takes put. Steering can be done through the road and railroad outline of India, which is consolidated within the software. Segmentation on incomes show a wide variation in consumer behaviour as described below: 1. High Income: Those having a place to upper strata—landlords, huge agriculturists, businessmen and traders—exhibit particular buying and devouring designs. Much of their buying is done from adjacent towns since they have huge vehicles like jeeps and tractor trolleys. A trip to the town implies buying products for the entire month; most of the buying is worn out bulk. In this way, their buying conduct is closest to consumers in created coun¬tries, who stock products in their cellars. As it were a number of every day consumables are bought from the 81 CU IDOL SELF LEARNING MATERIAL (SLM)

neighbourhood advertise. The tall salary bunch is additionally most likely to be impacted by brands and promoting. ii. Middle Income: Huge middle income families too purchase numerous items in bulk. Nourishment things like grains are obtained in bulk whereas new deliver is bought on a every day or week after week premise. Little center course families are likely to purchase most of their needs from the nearby showcase. The center wage bunch is likely to be more subordinate on neighbourhood stores than the tall wage bunch. Instead of buying brands, individuals within the center wage gather are likely to induce their dress sewed locally. iii. Lower Income: Individuals within the lower pay group depend on nearby stores and markets for all their needs. Neighborhood businesspeople give them credit, counsel and simple conveyance, which suits these shoppers. Acquiring is done more regularly, in spite of the fact that in lesser quantities. Individuals within the lower salary bunch are moreover likely to purchase littler packs. Ownership of Goods: Division of rural households can be made on the premise of proprietorship of specific products. Such a division investigation reveals categories that are developing or declining. It too appears openings for offering products with small infiltration in country areas. Data from NSSO in its report no 541 (2012) uncovers curiously patterns. Whereas the ownership of families with bike is to some degree steady and declining for radio, the ownership for categories like bike, car, tv and fridge appears an expanding slant, appearing the expanding success of individuals over the a long time. Sewing machines appear to be going out of 82 CU IDOL SELF LEARNING MATERIAL (SLM)

design but coolers and air-conditioners are being sold more (Table 3.10). Table 4.2 Percantage of Rural/Urban households possessing durable good The development rates and comparison with urban families is appeared in Table 3.10. The own-ership appears a rising slant for all categories of durables. Portable phones have the steepest chart, appearing speedy selection, a result of falling costs and simple accessibility. In other categories, entrance levels are very moo, uncovering an approaching opportunity for com¬panies. In any case, inventive showcasing and financing plans ought to be advertised to extend appropriation of durables. 4.4 SUMMARY  Very once in a while, marketers depend on a single variable for division. Target advertise to be important requires the utilize of a few factors. One of the later improvements in multi-variable division is geo-demographic segmentation.  Market lists can be exceptionally compelling methodology to tap a showcase that's heterogeneous with regard to its reaction to a item category. In this manner, provincial showcase being heterogeneous in nature is fitting to be measured and analyzed. Showcase files guarantee higher client fulfillment and move forward viability of the promoting program. It makes a difference the marketers to coordinate their items with the genuine needs the customer bunches. It is benefitted to both marketers and clients. 83 CU IDOL SELF LEARNING MATERIAL (SLM)

The states of mind, recognitions, values, convictions, eagerly and inclinations are the constituents of inclination, showing the consumers’ state of intellect, predisposing the customer to act in a specific way towards an item, brand, merchant and the company.  Segmentation studies based on buying thought processes, demeanors, discernments and inclinations deliver much way better comes about with respect to buyer conduct than those gotten by statistic, socio-economic factors or determinants. Whereas age, sex, utilization, pay can be measured dispassionately, identity characteristics, ways of life, thought processes, demeanors, values and convictions have to be induced as they are subjective marvels and cannot be dispassionately measured. 4.5 KEYWORDS • Market segmentation is the method of partitioning a target advertise into littler, more characterized categories. It portions clients and gatherings of people into groups that share comparable characteristics such as socioeconomics, interface, needs, or location. • Market Index: An record may be a strategy to track the execution of a gather of resources in a standardized way. Records ordinarily degree the execution of a basket of securities planning to imitate a certain range of the market. 4.6 LEARNING ACTIVITY 1. Select an industry of your liking and conduct a segmentation exercise in a rural market you are familiar with. How would you identify the most profitable segment? ___________________________________________________________________________ ___________________________________________________________________________ 2. Select a product newly launched in urban market and conduct a segmentation exercise in a rural market you are familiar with. How would you identify the most profitable segment? ___________________________________________________________________________ ___________________________________________________________________________ 4.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What are the major occupations in rural India? 2. How many categories does the TRMI suggest? 3. How can you segment rural market on economic factors? 4. What is the MICA Rural Market Rating about? 84 CU IDOL SELF LEARNING MATERIAL (SLM)

5. What is a marketing index? Long Questions 1. Why is segmentation considered a crucial exercise in marketing? 2. Differentiate between Mica Rural Market Ratings and Thomson Rural Market Index. 3. Explain the salient features of Thomson Rural Market Index. 4. Explain the salient features of Mica Rural Market Ratings. 5. What are the challenges faced in rural segmentation? B. Multiple Choice Questions 1. The process of assessing the relative worth of different market segments and selecting one or more segments in which to compete is called a. Target marketing b. Market segmentation c. Product differentiation d. None of these 2. An organization directs its marketing efforts at two or more segments by developing a marketing mix for each segment. a. Total market approach b. Concentration approach c. Multi-segment approach d. None of these 3. Serving a small market not served by competitors is known as…………. a. Local marketing b. Niche marketing c. Segment marketing d. Individual marketing 4. The strategy where the producer or marketer does not differentiate between different type of customers a. Undifferentiated Marketing b. Differentiated Marketing c. Concentrated Marketing d. Customised or Personalised Marketing 85 CU IDOL SELF LEARNING MATERIAL (SLM)

5. The concentration of all marketing efforts on one selected segment within the total market. a. Undifferentiated Marketing b. Differentiated Marketing c. Concentrated Marketing d. Customised or Personalised Marketing Answers 1-a, 2-c, 3-b, 4-a, 5-c 4.8 REFERENCES Text Book Reference  NCAER, New Perspectives in Marketing, New Delhi.  V.S. Ramaswamy and Namakumari S., Marketing Management, McMillan, Delhi, 1990 Website:  https://www.economicsdiscussion.net/marketing-management/rural-marketing-in- india/3195 86 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 5: RURAL MARKETING STRATEGIES Structure 5.0 Learning Objectives 5.0 Introduction 5.1 Rural Market Segmentation 5.2 Product Strategies 5.3 Pricing Strategies 5.4 Distribution Strategies 5.5 Promotion Strategies 5.6 Summary 5.7 Keywords 5.8 Learning Activity 5.9 Unit End Questions 5.10 References 5.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Explain the underlying marketing concepts with reference to the Unit topic  Apply generic marketing concepts to rural market context  Get familiarized with variables peculiar to a rural market 5.1 INTRODUCTION For effective topping the rustic markets, particular bunches of rustic socioeconomics, salary, topography, age, etc. ought to be centered. It makes a difference the marketers to concentrate on those country markets, which abdicate most extreme volumes, incomes and benefits. It is based on a huge number of factors like: a. socio-economic variables b. geological variables c. identity variables d. buying conduct of the rustic shoppers Logical division of provincial showcase postures a huge challenge to the advertiser due to need of satisfactory experimental information accessible. 5.2 RURAL MARKET SEGMENTATION What is segmentation? 87 CU IDOL SELF LEARNING MATERIAL (SLM)

Market segmentation can assist you to characterize and superior get it your target gatherings of people and perfect clients. On the off chance that you’re a marketer, this allows you to recognize the proper showcase for your items and after that target your promoting more viably. Essentially, distributers can utilize advertise division to offer more absolutely focused on advertising choices and to customize their substance for diverse group of onlookers groups. Say, for illustration, you’re a marketer who’s promoting a unused brand of pooch nourishment. You'll part an group of onlookers into portions based on whether they have a dog. You'll at that point fragment that gathering of people assist based on what kind of pooch they have and after that appear them advertisements for nourishment defined for their dog’s breed. A publisher might utilize this same data to appear substance around mutts to individuals who have or like dogs. Market segmentation permits you to target your content to the proper people within the right way, instead of focusing on your whole gathering of people with a generic message. This makes a difference you increment the chances of individuals locks in along with your advertisement or substance, coming about in more proficient campaigns and made strides return on speculation (ROI). Rural market division is the method of isolating a potential provincial showcase into particular sub markets of buyers with common needs and characteristics. Rural market division is the beginning step in applying the rustic promoting strategy. The essential issue in fragmenting the rural market is the heterogeneous nature of the market. Rural market division is the method of partitioning a potential rustic showcase into particular sub markets of customers with common needs and characteristics. Country advertise division is the beginning step in applying the rural promoting methodology. Once, division takes put, the advertiser targets the distinguished client bunches with appropriate marketing mix, so as to position the product/brand of company as seen by the target segments. Market segmentation may be a strategy for achieving greatest advertise reaction from limited marketing assets by recognizing contrasts within the reaction characteristics of different parts of the showcase. It is one of the foremost curiously and an successful apparatus within the hands of advertiser. Marketer division is the sub-division of a market into homogeneous subset of clients where any subset may conceivably be chosen as a target advertise to be come to with a unmistakable advertise mix. Market division is based on the truth that markets are heterogeneous and not homogeneous. Homogenous advertise implies a advertise where the planned buyers of any item are found to be uniform in their needs, propensities, choice, nature etc. Heterogeneous showcase alludes to a advertise where the planned buyers of any item are not found comparable or homogeneous in their needs, propensities, choice, nature etc. The essential issue in portioning the rural advertise is the heterogeneous nature of the advertise. In show disdain toward of there being heterogeneous advertise, the buyer of any 88 CU IDOL SELF LEARNING MATERIAL (SLM)

item can be partitioned into homogeneous groups of portions on the premise of their common needs, propensities, inclinations etc. There are various definitions of market segmentation. A few of the definitions of market division given by diverse specialists are as follows: According to American Promoting Affiliation, “Market division alludes to partitioning the heterogeneous markets into littler client bunches having certain homogeneous characteristics that can be fulfilled by the firm.” According to Philip Kotler, “Market segmentation is the sub separating of a advertise into homogeneous subsets of shoppers, where any subset may conceivably be chosen as a advertise target to be come to with a unmistakable showcasing mix.” According to William J. Stanton, “Market segmentation comprises of taking the entire heterogeneous advertise for an item and isolating it into a few sub markets or portions each of which tends to be homogeneous in all noteworthy aspects.” Agreeing to Schiffman and Kanuk, “Market segmentation can be characterized as the method of dividing a market into unmistakable subsets of buyers with common needs or characteristics and selecting one or more portions to target with a distinct marketing mix.” In brief able to say that showcase division could be a promoting concept which partitions the total market set up into smaller subsets comprising of consumers with a comparative taste, request and inclination. It permits the firm to way better fulfill desires of its potential customers. Characteristics of Rural Market Segmentation It is difficult to successfully capture everyone within the market put, so trade will point their makers and administrations at particular parts of the advertise. After selecting a section of the market, advertiser ought to assesses their choice carefully and guarantee that they have made the proper choice. In case a commerce starts with advancing items of market segments without a full assessment, it is unsafe, sitting around idly and cash. A fruitful market fragment will ordinarily meet the various criteria. To be useful, segmentation of market must exhibit some characteristics that are as follows: 1. Measurable: The market section must be measureable in arrange to calculate the advertise potential. The section factors must be unmistakable, clear and quantifiable. The measure, benefit and other pertinent characteristics of the portion must be quantifiable and realistic in terms of information. In case the data isn't reachable, no division can be carried out. Companies are incapable to reach provincial markets successfully due to need of comprehensive information related to markets and buyers. Within the nonappearance of data related to measure, acquiring control and profiles of rural customers, these were considered comparable to urban 89 CU IDOL SELF LEARNING MATERIAL (SLM)

cities. Nowadays provincial markets are being considered by different companies to get important information that can be utilized for segmentation. 2. Accessible: The portion ought to be available through existing arrange of individuals at a taken a toll that's reasonable. Reach is imperative to serve the portion. Presently, whereas fragmenting rustic markets, it is imperative to guarantee that the fragmented market is helpfully reachable to the advertiser to provide products. Till as of late, marketers favored urban markets to country one since of the inaccessibility of the provincial markets. But due to change in foundation and in network of towns and other modern channels of dissemination, country markets are getting to be progressively available. Provincial consumers can be come to through vans and through town retailers going by adjacent town wholesalers and retail outlets. Segments must be open in two faculties. Firstly, marketers must be able to form them mindful of items and administrations. Besides, they must get these items to them through dissemination framework at a reasonable cost. For illustration focusing on rustic populace might be through tv, radio and by opening outlets locally. 3. Differentiable: The market portions got to be different that they appear distinctive responses to distinctive showcasing maps, in the event that not at that point there would have been no utilize to break them up in portions. Segments draw in the thought of marketers as it were when they have recognizing highlights. Provincial buyers are distinguished as diverse fragments as their reactions may be distinctive from urban buyers at slightest for a few products. For Case – Whereas buying a motorbike, rustic customers donate more significance to sturdiness, mileage and carrying capacity of bicycle, while urban buyers explore for fashion, control and aesthetics. 4. Substantial: The segment ought to be huge sufficient to be beneficial. The segment ought to contain either an expansive number of light clients or a little number of heavy clients so that promoting gets to be advantageous to the company. It ought to comprise of individuals, who are comparative in recognitions, learning, state of mind, inclinations and activities. As such, covering them will be easy. Rural regions are not homogenous. Region-wise contrasts are found in dialect, intellect set and conduct. So, it is troublesome to plan isolated special programs as the estimate of consumers isn't large sufficient to form the exertion viable. 5. Actionable or Feasible: It has got to be conceivable to approach each portion with a specific marketing program and to draw points of interest from that. The portions that a company wishes to examine must be significant within the sense that there ought to be sufficient back, staff and capability to 90 CU IDOL SELF LEARNING MATERIAL (SLM)

require them. Subsequently, depending upon the reach of the company, the segments ought to be chosen. 6. General Considerations: Separated from the over requisites, the segment must have development potential, be productive, carries no abnormal chance and has competitors, who don't battle specifically with the item or brand. The firm must have sufficient assets for advertise division. The section criteria ought to take after the informational and rules issued by the government with respect to conveyance of a specific product. The portion ought to be generally steady over a period of time. The segment that rise quickly and vanish fair as rapidly will not be a great portion. So section must be reasonable, practicable and appealing to the firm. Demographic factors are taken into thought for showcase division of customer products and quick moving buyer products (FMCG). In case of country promoting i.e., to offer exterior merchandise in rustic ranges, demography comes into the picture. In any case, the categories are much decreased. Here financial level, introduction to mindfulness of advanced life and socio-economic highlights come into the picture. A few of the segmentations are as beneath: Occupational Segmentation: This leads to economy-wise categorization. • Small farmers, tenant farmers • Medium level farmers • Large farmers and • Very large farmers, zamindars. Sociological Segmentation: There are six categories in this type of segmentation. This leads to socio-economic representation of the segment. Rich Farmers: who have large lands and are local leaders. They spend time in the urban areas and try doing some other occupation. Artisans, farm labourers Tenant Fanners: working on rented land to share the crops with owners of the land. Agricultural Labours: They work on wages in the land of rich farmers. TRMI (Thomson Rural Market Index): • Agricultural labourers • Gross cropped area • Gross irrigated area • Area under non-food crops • Pumpscts 91 CU IDOL SELF LEARNING MATERIAL (SLM)

• Fertilizer consumption • Tractors • Rural credit • Rural deposits and • Villages electrified. Based on these factors, the districts are classified as A, B, C, D and E. which are in the order of high potential market to low potential market. Lin Quest: This method is software developed by Initiative Media on data along the following parameters: • Demographic • Agricultural • Income • Literacy and • Civic Amenities MICA Rating: This is also a software package to be used on similar lines as Lin- Quest. The parameters of this segment are as follows: • Total volume of agricultural output • Bank Advances • Cropped area • Irrigated area • Number of cultivators and • Fertilizer consumption. Targetting Rural Consumers After recognizable proof of different fragments, the following step is to start the assessment of equipment’s, selecting specific sections as targets and scope of these chosen portions. All three capacities together are called as targeting. Evaluation of Segments: For assessment of segments, certain related assessment criteria have to be distinguished. The conceivable criteria ought to eventually lead to deals volumes and profitability. Sales volume and benefit: Towards this, the organization needs to collect the information based on the taking after factors: • Likely sales volume • Promotion costs 92 CU IDOL SELF LEARNING MATERIAL (SLM)

• Distribution costs • Sales value and • Profit margin Advertise drift: The assessment of deals volume gives the current circumstance. What we need to see is the development potential both in close future and removed future. The development is more straightforwardly related to development of populace in an area. Attracting: A few segments effortlessly get pulled in with certain special programs. A few of the commonly taken after strategies are blessing plans, installment installments, combined offers etc. Organizational targets: An organization ought to assess the segments based on its claim brief run and long-range objectives. Constraints: Limitations and restrictions of a portion depends upon nearby socio-cultural values, government rules, set up brands and any natural issue. In such a circumstance, a more cautious approach is desired. Benefit Distinction: Benefit calculate applies to automobiles, TV sets, sound sets, fridges, blends etc. Here moreover companies alter their guarantee period from time to time depending upon the diversions of competition at the minute there's vital competition among mobile phone companies around cost, benefit, markdown, conceded installments etc. Marketing Individuals: The deals and benefit individuals of organizations can grant additional affect of deals or benefit and make a difference with competitors. This can be more conceivable in-service organizations like healing centers, schools and colleges, banks and indeed travel organizations. The expeditiousness of answers, an inviting mien, speedy taking care of work and in some cases taking care of 2-3 clients at the same time shows proficiency and concern for client care. 5.3 PRODUCT STRATEGIES A product strategy could be a high-level plan portraying what a trade trusts to achieve with its item, and how it plans to do so. This procedure ought to reply key questions such as who the item will serve (personas), how it'll advantage those personas, and what are the company’s objectives for the item all through its lifecycle. Why is Product Strategy Important? A product strategy serves three main valuable business purposes. 1. It provides clarity for your company. 93 CU IDOL SELF LEARNING MATERIAL (SLM)

Your group will be in distant better a distant better position to provide their best work after you draft and communicate a clear and well-thought-out item procedure to your organization. Your designers will get it how the parts of the item that they’re working on contributes to the bigger companywide key objectives. Engineers can now and then feel caught among all the points of interest and lose locate of the overarching reason behind all of their work, and an item methodology clarifies that for them. Your promoting and deals groups will be able to express the product’s benefits and interesting offering recommendation. Without a characterized technique behind a product—generating expectation and deals gets to be difficult. Additionally, your client victory group will way better get it your product’s utilize cases and give way better back for your users’ frustrations. 2. It helps you prioritize your product roadmap. After you’ve earned partner understanding for your proposition, it'll be time to decipher that procedure into a high-level activity arrange. This implies building an successful item roadmap. Unfortunately, numerous item groups skip the strategy-drafting organize and hop right into posting topics and sagas on their guide. Without an item technique to direct these choices, the group is more likely to prioritize the off-base things and discover itself abusing its restricted time and resources. But once you begin with an item methodology, you have got a clearer picture of what you trust to achieve along with your item, which can decipher into a more deliberately sound item roadmap. 3. It improves your team’s tactical decisions. No organization conveys a item to the showcase taking after the precise arrange drafted within the introductory guide. Things change along the way and item directors got to be arranged to alter their plans and needs to deal with those changes. When you and your group have a clear item procedure to refer back to, you'll make more brilliant vital choices around how to alter your plans on the off chance that you lose assets or got to alter your assessed timetables. For the rural segment and provincial consumers, many MNCs and Indian companies have done showcase studies to get it the item procedure to be embraced. The rural market is much distinctive than the urban advertise and the ponders have made a difference to attain comes about instead of making insignificant nearness and endeavors. Little Measure Packings: The low per capita income, non-availability of regular pay and cash forces the rural consumer to buy in small packets various products. The examples can be explained in plenty. FMCG: Nearly all FMCG products producers have come out with littler bundles and low cost varieties Toothpastes are accessible in 10 gm, 25 gm and 50 gm packets/tubes. Cleanser powders are accessible for Rs.2, 5,14 kg, Vi kg parcels. Shower cleanser cakes are accessible in little sizes of 25 gm and 50 gm in expansion to the standard 75 gm sizes. Low-Priced Bundle and Item Enormous and little companies have embraced an unwritten approach to dump moment review quality to offer at lower costs within the rural market. Items like ghutka, cold drinks, beedis, cigarettes, tea and coffee powders came to the country ranges in 94 CU IDOL SELF LEARNING MATERIAL (SLM)

littler bundles and lower rates than those sold in cities. The quality will be medium or lower level, free tea is packed and sold totally different brand names suiting the rural public. The set up brands cannot do this and subsequently they attempt to offer the quality item in exceptionally little bundles. They can continuously make up minimal misfortunes in country ranges by offering high- priced items in cities. Unpleasant, Intense and Uproarious Town individuals accept that rough looks, extreme or strong looks and shinning colours final longer. Typically the reason why ‘Jawa’ cruiser was sold more in rustic zones. So also, loud commotion making transistors, radios, shinning coloured dress, banians, underwear’s or turbans offer way better. Overwhelming furniture with alluring and quick colours offer way better than light sort with not too bad colours. They anticipate most of the items bought to serve them for a longer period or long lasting. Item Plan The advancement in item plan will be acknowledged by the country individuals as it were in case it leads to cost reduction. The changes made ought to suit their tastes and likes. Basic to utilize and handle are particular necessities. Material substitutions ought to be embraced for cost decrease. All this can be worth doing due to the market potential. Items Rural individuals are not inquisitive about favor things which are later implied to be kept in exhibits. They are more specific to purchase as it were utility-oriented items Brand picture the rustic individuals distinguish the brands in their claim way. For illustration, Eveready battery cells are called ‘red-battery’ and numerous items are distinguished by images and extraordinarily images related to the Hindu divinity. In brief, the item procedure ought to cover moo estimating, little parcels, rough construct and simple to keep in mind names so that gradually the rural market can be created. 5.4 PRICING STRATEGIES It is normal that estimating strategy for country segments must be in tune with the bundling and item procedure. Considering inhibitions, moo salary levels and destitute cash stream in provincial division estimating needs to be on the lower side. Hence, bundling has been made to suit moo esteem buys by country people. Moo Estimating: Littler bundles of tea, toothpowder, cleanser, cleanser powder, cleanser cakes, arecanut bundles, ghutka parcels, a few standard quality and a few moo quality are sold at costs with exceptionally moo edges. This technique is taken after by ali producers and dealers at the all-India level. Taken a toll Sparing in Pressing: For offering in provincial regions, makers have turn to utilize of cheap quality or conventional pickings so that to a few degree, cost decrease is conceivable. Eatables like rolls, sugar candies and others are pressed in single plastic bags so that it is fair sufficient to carry and handle. In addition, provincial individuals are not interested in advanced packing’s. They search for cost and utility. Transformations: The standard estimating components like costs, competition, premium item esteem, modern item estimating, channel figure, advancement costs etc. are not carefully thought out in case of 95 CU IDOL SELF LEARNING MATERIAL (SLM)

provincial estimating as consumer products are to be pushed within the rustic segment. The makers got to create the market and make a progressive alter in rural society and rural culture. Price refers to exchange value of the product and includes- (a) Maximum retail price, (b) Discounts, (c) Credit, (d) Terms of delivery and (e) Maintenance charges. Rural retailers generally require credit and, therefore, product pricing has to be adjusted to meet their requirements. Pricing Strategy includes the following prominent methods of setting price: (a) Low Price: A rural customer is price-sensitive primarily since of his relatively low level of wage and unit cost of an item will have an effect on deals. Estimating the item at a lower cost truly draws in rural population for attempting the items. In spite of the fact that rustic earnings have developed within the past decade, the cash earned by the normal provincial buyer is still much lower than that of his urban counterpart. A large portion of the wage is went through on the essential necessities, clearing out a littler parcel for other customer products. Illustrations- (1) Bharath Petroleum has presented five kg gas barrels to diminish beginning store and refill fetched for provincial customers. The store for 5 kg barrel is Rs.350/- against Rs.700/- for 14 kg barrel and refill taken a toll is Rs.90/- against Rs.250/- for 14 kg barrels. (2) Little unit packs of cleanser, hair oil, toothpaste, rolls and showering soap. (b) No-Frills Product: The production cost can be lowered by using less sophistication and rather concentrating on sturdiness and utility of the product. Examples- 1. Maharaja Appliances Ltd., sells a sturdy Bonus washing machine, without a drier for rural market at Rs.2,990/-. 2. The rural markets operate on a price-value proposition. LC Electronics has knocked off some of the frills in the products. The thought is to allow highlights that are completely irreplaceable. The rural consumer does not require Colden Eye highlight and so base models don't have this feature. Again not all customers require 200 channels and so they have given 100 channels within the base demonstrate. Everyone may not require a sound yield of 350 watts and so they have given an yield of 200 watts in base sets. The provincial buyer is esteem cognizant. He will purchase the item that gives esteem for money. (c) Refill/Reusable Bundling: By giving refill bundling marketers can include esteem to the estimating of the item. Cases- Bourn vita accessible in refill pack and cleansers made accessible in reusable packaging. 96 CU IDOL SELF LEARNING MATERIAL (SLM)

(d) Credit Offices: Success or disappointment of edit depends upon climatic conditions. Positive conditions allow bumper yields and troublesome conditions result in exceptionally moo yields, and, so, rustic wage is regular in nature. The farmer requires credit for assembly development costs as well as running the family between showcasing of create and the gather of another crop. He profits credit offices from the town shipper for buying family necessities. The rural retailer in turn requires credit offices from the merchants of customer products. Numerous companies expand credit to the town retailers to induce them to stock the company’s products and thrust it within the advertise. The choice to expand credit is based on the volume of commerce and credit value of the retailers. The credit period shifts between 15-30 days within the case of fast-moving buyer goods. (e) Discounts: Discounts are advertised to persuade the retailers to offer more of the companies’ items. A discount of almost 10 per cent is given on the most extreme retail cost within the case of fast-moving buyer products. Numerous Companies offer appealing extra rebates to propel the retailer to stock the items amid off-season. (f) Promotional Schemes: Regularly agriculturists buy shopper solid things after the gather of crops. So also, Diwali, Pongal, Onam, Dassera, Id and Christmas are the celebrations for buying family articles. Uncommon advancement plans such as unused item presentation plot, celebration offer by way of uncommon rebates, trade offer i.e., taking back utilized customer durables are forcefully advanced amid collecting and celebration seasons in provincial regions for expanding deals of the products. (g) Value Engineering: This can be an globally utilized method, which makes a difference organizations not as it were lower costs but improve esteem to customer. The concept has been actualized by a couple of firms in tapping the rustic markets. Illustration- Nirma cleanser powder, over a period of ten a long time has gotten to be the biggest offering brand in country India. The victory of Nirma is due to reasonable cost, medium quality, accessibility at town shops and utilize of rustic particular mass media. 5.5 DISTRIBUTION STRATEGIES A distribution strategy may be a strategy of disseminating goods or administrations to end- users. Executing the foremost efficient dispersion strategy for your commerce is key to getting income and holding client devotion. A few companies select to utilize numerous dissemination strategies to follow to different consumer bases. For case, in the event that you’re offering a calfskin futon and need to cater to individuals ages 60 and over, you might select to specifically offer items through catalog. For a more youthful client base, you might choose to by implication offer items by working with a retailer such as Walmart. At its center, distribution strategy ought to be based on your perfect client — how does the normal client purchase products? How may you, as a maker, make the obtaining prepare 97 CU IDOL SELF LEARNING MATERIAL (SLM)

simpler? Is it an broad buy where buying the thing straightforwardly from the producer may well be worth the potential bother, or is it a schedule thing where the client would or maybe get the item rapidly and on-demand through a retailer? The part that an thing will play in a client’s life and the sort of buy choice related with an item are critical viewpoints to consider when deciding a technique. The smaller villages are not completely touched due to different reasons like openness, little markets and distant separations from towns and towns. Methodologies for conveyance to different country sections are examined as beneath: Small Villages: in arrange to reach littler towns, two sorts of procedures got to be received i.e., reach all towns over 2000 populace and reach all those inside 50 km span of huge towns and cities. This will offer assistance cover around 50% of the provincial populace and indeed this extent of scope implies around 350 million populace and this is often a gigantic scope. Agro-input Dealers: Agricultural input merchants have skill and scope to bargain with rustic open as they are as of now in touch with them for basic inputs like manures, seeds and chemicals. In their exchanges they are as of now overseeing credit courses of action and subsequently are in a higher position to require care of customer products moreover. This strategy ought to be attempted genuinely. With abundance, their awareness of present day merchandise and offices moreover has expanded. In expansion to this, the regions where cooperatives of sugar and dairy are more grounded, the agriculturists have superior pay level and cash stream is consistent. It is in such places that the endeavors to offer customer products deliver comes about. These ranchers will set a slant for other farm communities. Actuating Co-operative Social orders: In spite of the fact that cooperatives have been begun basically for input and yield of rustic deliver, there's scope and plausibility to utilize these premises and workplaces for promoting of customer merchandise to rural people. Utilizing PDS Stores and Petrol Pumps: These are two unexplored regions to create advertise. Open Conveyance Frameworks (PDS) are accessible all through the nation and indeed in towns. Additionally petrol pumps are accessible on all highways, state interstates and interface streets to towns and huge towns. These two places hence have sufficient scope to be of gigantic utility to be embraced for consumable and tough products to be sold to the rural population. PDS stores have now-a-days gotten to be slightest dynamic due to diminishing significance of this conspire and exceptionally small hole between advertise cost and PDS costs. This normally gives scope to create way better utilization of these outlets. Towns as Feeder Centres: Towns are regularly gone by rustic individuals for instruction, cinema, shows, buys, restorative treatment and different functions. The dispersion procedure can be changed based on the changing life fashion, communication and movement offices 5.6 PROMOTION STRATEGIES A promotion strategy is an significant arrange to impact individuals approximately your trade, create more leads, and boost client engagement. It visualizes how to perform your 98 CU IDOL SELF LEARNING MATERIAL (SLM)

showcasing methodology and communication, who to target as your gathering of people, and where and when to execute the promotion plan. Many marketers spend more on commerce advancement each year, but they get less. There are as well numerous choices and marketing voices, so you've got to form beyond any doubt that your messages are truly coming to the individuals you need to approach once you advance your business. What’s more, it is exceptionally troublesome to change over individuals into clients without resounding showcasing voices to make enthusiastic associations and stir interface and requests to your offers. Different sorts of advancement strategies work as integrative systems between makers and customers. In case of shopper products, this can be done on large scale though for provincial items, it is on little scale or particular target astute done. The makers and processors think in terms of “How to reach our customers” and “How our client can reach us”. The item bundle, shape, colour, estimating and deals people get up and common impressions are no more imposing business model of consumer merchandise, merchants Best Cinema: For the final 60 a long time, cinema proceeds to be affecting components in fashion, tastes, dress materials and add up to Indian culture. Item promotions some time recently a motion picture, and amid interims get great publicity. All the theaters do this with the assistance of slides and 1 or 2 minutes motion picture sort notices to highlight the item execution and utility. Tv: Since the final two decades, TV seeing has been a normal leisure activity for all Indian open. The TV serials like ‘Mahabharat’, ‘Ramayana’, ‘Hum log’ and cricket matches have made TV Very popular. The research based information appears that the South has cinema dominance and rest of the nation has TV dominance. Accordingly, the promotion procedure ought to be received to procure more benefits. For all India scope, imperative and well known serial interims are best to publicize on TV. Advertising some time recently and in between this program too gets great impact. The as it were imperative is that such prime time notices cost more. As it were items which can assimilate such tall costs can manage this. The primary and most celebrated commercial on Radio was ‘Binaca Geethmala’ on Radio Ceylon. In this way, numerous programs have come on ‘Vividha Bharati’ and nearby dialects Film tunes are prevalent and playing promotions in between to draw in consideration by the audience members. Scope of radio stations is wide, and serves the reason. Provincial individuals have the propensity of carrying transistor radio sets and subsequently they play the radio wherever they go. Almost 75% of the rustic populace tunes in every so often. Print Media: Due to low literacy rate and poor reading habits, this is not a popular promotion strategy. Rural people regularly examined daily papers on Fridays and Sundays when there's more scope around the motion pictures being appeared and the forward coming motion pictures. So the promotion of cinema seeing is best done by the daily papers as distant as provincial individuals are concerned. Hoardings: Hoardings on town passage junctions, composing and portray on dividers of open buildings in towns. The country inputs like manures and 99 CU IDOL SELF LEARNING MATERIAL (SLM)

pesticides are publicized like this. Different Congregations like Mela/Jathra/Shondis/Hats: Certain places have particular advertise days which can be utilized for mass communication to speed mindfulness of items. On the creative front, it is fundamental that a campaign is grounded in neighborhood reality, so that issue of comprehensive recognizable proof and memorability can be viably tended to. The country compaign costs can be minimized by creating special tools for arranging and usage. Point-of-contact ought to be effectively changed over into point-of deal by utilizing attractive danglers, little blurbs, alluring course of action of items by leasing glass appear cases open to the street, naming excited deals people to present item etc. Companies can too utilize prevalent frame of excitement such as puppetry, nautanki, ragini, bhangra, quawali and other move appears to extend the brand encounter. A story line can be created relating to the brand and the characters shown utilizing the brands to their advantage. The dresses may be in colours of the brand's bundling. Enterprises and promoting agencies have begun working in this region. The manikin appears in Punjab and Ragini in Haryana utilized for communicating qualities of Virat cement, Pala and Daskathia in Orissa for advancing secure power utilization and Colgate Palmolive toothpaste - Safeguard tunes of West Bengal to promote bug spray are a few illustrations. Indeed the broad arrange of postal and restorative specialists all through the nation can be used as an elective vehicle for brand advancement within the rustic ranges. The post box, post office dividers and the post man's uniform will carry the symbol and the brand names of companies just like the sports ensembles of sportsmen. Haats, Melas and other celebrations, fairs etc. are no question appropriate stages for limited time exercises, but they don't happen each day. Thus one should arrange his communication with the \"Transport focuses\" of a town, for day- to-day contact with the potential consumers. For instance, a well would be the point of joining for the ladies people in Maharashtra, whereas a lake is where the town beauties of Bengal meet. To include men, tea-stalls act as an effective sound board. Here the well dividers, trees close lakes, bill-boards close the slows down can be utilized to publicize an item. Based on the social conduct of diverse states in India, the communication strategy should vary. Tv seeing may be a family undertaking in Punjab, whereas in Bihar it gets to be a community undertaking where neighbors get together to observe a top pick program. In like manner, a company can choose in the event that it's- coordinate promoting exertion is to be a door-to-door program or of a community kind (like fairs and festivals gatherings). The assignment of teaching the rustic customers and making a need for a specific item is the primary step in advancement of the product. Here the help of a few important people of the town such as the town Patel or Sarpanch, the town Hakim, the neighborhood Munshi and the town instructor (on whom the towns have certainty and towards whom they looked for direction, counsel and authority) are exceptionally valuable in making mindfulness to the buyers. Indeed the town businesspeople are guided in their buying choice by them. Usually genuine particularly for wellbeing and 100 CU IDOL SELF LEARNING MATERIAL (SLM)