Types of requirements of Rural Demand

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Types of Requirements of Rural Demand

Understanding the unique characteristics of rural markets is essential for effective marketing strategies. Rural marketing demands tailored approaches due to the distinct nature of rural consumers and their environment. Here are the key factors and strategies relevant to rural demand:

Promotion Efforts

  • Special Promotions:
    • AVP Vans, Demonstrations, Group Meetings: These methods cater to the unique characteristics of rural markets, requiring interactive and community-focused promotions.
    • Street Shows and Wall Paintings: Popular and cost-effective promotional methods. Wall paintings provide mutual benefits by offering free advertisements on village walls.
    • Audio Announcements: Effective in small towns, especially at bus stands, to reach a larger audience.
  • Word of Mouth:
    • Community Influence: Rural consumers rely heavily on recommendations from community members, religious leaders, and spiritual figures.
    • Personal Communication: Personal presence in the community enhances brand reputation and fosters trust.
  • Local Expertise:
    • Rural Service Providers: Collaborating with local agencies or experienced rural marketers helps avoid common pitfalls and enhances campaign success.

Large and Scattered Market

  • Rural Population: Around 63 crore customers across 570,000 villages.
  • Market Potential: Rural areas contribute significantly to the Indian economy, representing over 40% of it and accounting for nearly 70% of the total population.

Pricing

  • Price Sensitivity: Rural consumers are highly price-conscious and prefer discounts and sales.
  • Credit Purchases: Payments are often deferred, with a strong preference for credit-based transactions.

Promotion

  • Personal Selling: Effective due to the trust and rapport built with local salespeople.
  • Influence of Reference Groups: Opinions of family members and religious leaders strongly impact buying decisions.
  • Promotional Articles: Items like religious-themed calendars, key-chains, and lamps are popular promotional tools.
  • Visual Advertisements: Ads in local magazines and newspapers in regional languages are highly effective.

Products

  • Utility over Status: Rural consumers prioritize the functionality and practicality of products over status symbols.
  • Religious and Social Compatibility: Products aligning with religious beliefs and social norms are favored.
  • Family-Oriented Products: Items that benefit the entire family are preferred over those meant for individual use.
  • Minimal Concern for Branding: Branding, packaging, and labeling have less influence compared to urban markets.
  • After-Sales Services: Awareness and concern for after-sales services like guarantees and warranties are minimal.

Distribution

  • Known Retailers: Purchases are usually made from trusted local retailers rather than large stores.
  • Immediate Possession: Rural consumers prefer to buy and use products immediately, showing less patience for delayed gratification.
  • Influence of Social Structures: Caste, religion, and political affiliations significantly affect retailer choices.
  • Limited Online Presence: Online marketing has not penetrated rural areas effectively; frequent small orders and limited storage are common.