MARKET STRATEGY REFERENCE WITH RURAL MARKET

MARKET STRATEGY
REFERENCE WITH RURAL MARKET [
TOOPRAN]
14/12/2013 1M.KIRAN KUMAR(leader) GROUP B

14/12/2013 M.KIRAN KUMAR(leader) GROUP B 2

objective
1.What is Market.
2.Classification of Market on basis of 1)Time 2)Place 3)Competition
3.Rural Market and Varies Aspects in it.
4. 4P”S in market competition.
5.Objectives Related to Seller and Consumer.
6.Casestudy related to Toopran Market [Ideas].
7.Questions Related to Presentation

Market means a place where buyer
and seller meets together in order to
carry on transactions of goods and
services.
"Market refers to arrangement, whereby buyers
and sellers come in contact with each other
directly or indirectly, to buy or sell goods."

Classification of Market

1.Sellers and buyers
Large number of sellers and
buyers
Are in the perfect competition
2.Entry Free entry in perfect
competition
3.Tax Low tax
4.Transport costs No transport cost in perfect
competition
5.Products Number products are available
6.Government Involvement Less Involvement including
permission and low tax
7.Product Differentiation There respective changes from
product to product
8.Economy of scale As per wish of seller

Rural Marketing :-
Meaning
Planning & Implementation of marketing
functions for Rural Areas
Definition
Rural marketing has been defined
as the process of developing, pricing,
promoting, distributing, rural specific goods &
services leading to exchange between urban &
Rural markets, which satisfies consumer
demand & also achieves marketing objectives

Companies will have to innovate profusely if
their product and services have to be acceptable
Rural consumers
Washing machines will have no use for rural consumers when
they do not have either electricity or running water washing
machines will have to be powered differently.
Rural consumers buy diesel in bulk to run their
water pumps, Harvesters and tractors it is helpful
if their vehicles also run on diesel.

Consumer durable products and vehicles have to be designed
very differently for rural market. Companies who want to
market in rural areas have to Start on a clean slate through
innovation.
There are several grassroots innovators in India with
revolutionary Products that people in rural areas want.

The Multi-national companies(MNCs) placing new
demands before the farmers in terms of the crops
varieties and quality required.
If the farmers want to work with them, and make more
money out of farming.
This is being driven through contract farming, joint
ventures, leasing of land, And extension to the loosely
contracted farmers in a given area.
In some crops, MNCs are directly competing with the
farmers, forcing them to become agribusiness men who
use modern and better inputs.14/12/2013 10M.KIRAN KUMAR(leader) GROUP B

The whole approach to farming is undergoing
change with the globalization of rural production
processes and privatization of various systems.
There is also competition from substitutes like bio-
fertilizers and bio-pesticides in fertilizer and pesticide
market respectively.
Therefore ,competition is to be understood in a more
strategic sense of buyers, suppliers, new entrants,
substitutes and existing competitors

Marketing effort for manufactured consumer goods as
well as agricultural Inputs in rural areas is constrained by
the following:
High distribution costs:
High initial market development expenditure:
Credit facility
Inadequate infrastructural facilities such as
connecting roads,media availability etc.

As part of “Advertising experience” advertisements
influence the Viewers beliefs and attitude and are the
most effective means to Facilitate a positive feeling
about any brand.
As part of “shopping experience” the shopping
environment created while Purchasing a product also
helps form an attitude about the product.
As part of “consumption experience” the feelings during the
consumption of a Product influence the consumer’s post
consumption evaluations. Consumptions are more satisfied if
consumption leads to positive feelings.

5.Objectives Related to Seller and Consumer.
Marketing objectives define what you
want to accomplish through your
marketing activities. There are several
important factors to consider when
establishing effective marketing
objectives.
SMART Approach

S=Setting specific
M=measurable
A= achievable,
R=realistic
T=time

•Specific- Need to understand the latest preferences of
customers in the identified segments and appropriately target each
stationary item such as pens, exercise books, roolers, and
calculators to maximize sales volumes
•Measurable - Current market share is 20%, will set a target
of 30% market share, meaning we need an extra 10%, market share
amounts can be established based by monitoring the overall value
of sales in terms of dollars
•Achievable - Ensuring technical competency and commitment of
all personnel involved in the development and implementation of
strategy. This can range from having an experienced and knowledgeable
marketing team to capable sales staff. Access to funding is also
necessary for the acquisition of extra stock to fulfill increased demand.

•Realistic - The objective is realistic as
the marketing resources are in place to conduct
the segmenting and targeting exercise and
access to the extra stock required
•Time Specific - The increase in market
share is to be achieved within 12months,
a regular progress update will be taken
every month to track level of success

The marketing mix and the 4 Ps of marketing are often
used as synonyms for each other. In fact, they are not
necessarily the same thing.
"Marketing mix" is a general phrase used to describe the
different kinds of choices organizations have to make in
the whole process of bringing a product or service to
market. The 4Ps is one way – probably the best-known
way – of defining the marketing mix, and was first
expressed in 1960 by E J McCarthy.
4P”S in market competition

The 4Ps are:
•Product (or Service).
•Place.
•Price.
•Promotion.

1.Product/Service
1.What does the customer want from the product/service?
What needs does it satisfy?
2.What features does it have to meet these needs?
3.Are you including costly features that the customer won't
actually use?
4.How and where will the customer use it?
5.What does it look like? How will customers experience it?
6.What size(s), color(s), and so on, should it be?
7.What is it to be called?
8.How is it branded?
10.How is it differentiated versus your competitors?
11.What is the most it can cost to provide, and still be sold
sufficiently profitably? (See also Price, below).

2.Place
•Where do buyers look for your product or service?
•If they look in a store, what kind? A specialist boutique
or in a supermarket, or both? Or online? Or direct, via a
catalogue?
•How can you access the right distribution channels?
•Do you need to use a sales force? Or attend trade fairs?
Or make online submissions? Or send samples to
catalogue companies?
•What do you competitors do, and how can you learn
from that and/or differentiate?

3.Price
1.What is the value of the product or service to the buyer?
2.Are there established price points for products or services
in this area?
3.Is the customer price sensitive? Will a small decrease in
price gain you extra market share? Or will a small increase
be indiscernible, and so gain you extra profit margin?
4.What discounts should be offered to trade customers, or to
other specific segments of your market?
5.How will your price compare with your competitors?

4.Promotion
•Where and when can you get across your marketing messages
to your target market?
•Will you reach your audience by advertising in the press, or on
TV, or radio, or on billboards? By using direct marketing mail
shot? Through PR? On the Internet?
•When is the best time to promote? Is there seasonality in the
market? Are there any wider environmental issues that suggest
or dictate the timing of your market launch, or the timing of
subsequent promotions?
•How do your competitors do their promotions? And how does
that influence your choice of promotional activity?

Strengths (S) Weaknesses (W)
•Excellent sales staff with
strong knowledge of
existing products
•Good relationship with
customers
•Good internal
communications
•High traffic location
•Successful marketing
strategies
•Reputation for innovation
•Currently struggling to
meet deadlines - too much
work?
•High rental costs
•Market research data may
be out of date
•Cash flow problems
•Holding too much stock
•Poor record keeping
Internal environment

External environment
Opportunities (O) Threats (T)
•Similar products on the
market are not as reliable or
are more expensive
•Loyal customers
•Product could be on the
market for Christmas
•Customer demand - have
asked sales staff for similar
product
•Competitors have a similar
product
•Competitors have
launched a new advertising
campaign
•Competitor opening shop
nearby
•Downturn in economy may
mean people are spending
less

1.What is perfect competition.
2.What you understand from and explain the 4Ps in
market strategy.
3.What you understand the SMART Analysis.
4.What you understand the SWOT Analysis.
5.Give any 3 demands are given by any seller in rural
market.
6.Why MNCs are placing various demands before the
farmers.

MARKET STRATEGY REFERENCE WITH RURAL MARKET

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