Marketing
Challenges in rural marketing: To enter into the vast and potential market, the most important and critical step is to find out the challenges, which are the biggest hurdles in the way. “Once challenges are identified, 50% of the work is done.” • Low literacy: The literacy rate in rural areas is very low. Thus people are not aware about the product i.e. the quality of the product, for which particular brand the product is associated, how to use the product, what the price of the product is and what are the offers on that product. Hence they cannot be loyal customers to the company. In this case it becomes very important for the company to develop such tools and techniques that makes the consumers aware about the product. • Vast and scattered market: In order to penetrate, it is important to segment the rural market as it is vast and scattered • Transportation : Inappropriate transportation facilities in rural areas disrupts the supply chain increasing wastage and hampering product delivery • Distribution of product and services: in the rural areas there are many problems like electricity, communication, transportation and media thus how to reach and deliver the product and services to the target customer is a crucial aspect. • Customer identification: The most important thing is customer identification. The market in rural area is vast in nature and to identify the customer for the target product is an upheaval and important task. • Affordability: After the identification of the target segment the work becomes easy. People in the rural areas largely depend on the agriculture so what they can afford and when they can afford is to be answered. • Awareness: There is lack of information in the rural areas. It is important to aware the people about quality, value and use of the product. • Understanding Consumer Behavior: People from different cast, religion, community and culture are present in a rural area. Different people have different behavior patterns and it is important for the companies to identify that to establish connect with the customers • Media and promotion: Modes of promotion differ in different areas. Where there is electricity there may or may not be television because not everyone can afford. Some even don’t have radio and most people are illiterate. So in such type of a situation how and where to promote the product is again a big hurdle for companies. • Seasonal Demand: Agriculture is a seasonal business which makes the ability to pay quite seasonal, thus companies should find out some alternative modes like giving credit cards or selling their products and services on credit.
• Lack of desire for new styles: people in rural areas are basically outmoded. They are reluctant towards adopting new styles. This may be due to affordability issues and unawareness. Companies should thus find out the best alternatives to reach the customers and create desire. Eg. Companies could bundle their products as free gifts with essential goods so as to create the desire and willingness to buy. Things are certainly changing. Consumer financing schemes, insurance schemes and promotion associated with delivering products to rural consumers will be preferred. Understanding the needs and desires of the Indian-rural consumer, price competitiveness, innovation and R&D form the key to unlocking the potential of this vast market.
iNM - Magazine Vol. 4
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