Transcript Session II- Rural Marketing - Xavier Institute of Management

Segmentation, Targeting & Positioning in
Rural Markets
Session II
Xavier Institute of Management, Bhubaneswar
Orientations to the Market
 Selling orientation - Product orientation - Marketing orientation
 C K Prahalad and V Ramaswamy – Co- creating value with
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customers
Market as a target to “ Market as a forum”
The “ contribution revolution”
“Customer is the king/ queen”
Understanding the customer is vital
The Mahatma’s words at railway stations
Foundation of the STP process
The STP Process
Marketing Decision
Marketing Actions to be Undertaken
Segmenting
Identifying and developing profiles of
market segments
Target
Evaluating segments and deciding the
market coverage strategy
Positioning
Identifying , selecting and
communicating competitive
advantages
Source: The Rural Marketing Book- Khasyap. P & Raut. S
Heterogeneity in Rural India
Variable
Example
Socio – Cultural Differences
Caste Based Habitations in Villages
Population Size & Density
KeralaVs Andhra Pradesh
Difference in Infrastructure
BIMARU states Vs Karnataka
Media Exposure levels
KeralaVs Orissa
Literacy Levels
Himachal Pradesh Vs Bihar
Income levels & patterns
Farmers & Daily Wage Earners
Family Structure
Joint Families & Nuclear Families
Segmentation: Issues & Options
 Measurability- Accessibility- Differentiability & Profitability
 Is it easy to measure segments in rural areas?
 What are the issues in accessing rural markets?
 Is it necessary to segment underdeveloped markets? ( need
for differentiation)
 What is the appropriate pay –back period by focusing on a
segment?
 What should be the appropriate market targeting strategy?
 Mass – Segment – Niche – Micro approaches
Basis & Approaches to Segmentation
Segmentation
Criteria
Relevant Variables ( Indicative)
Geographic
• Region & SCRs
•Village Size and density
• Climate
Demographic
• Age
• Gender
• Income: ( NCAER )
• Landownership
• Education ( SEC Classification)
• Occupation ( SEC Classification)
•Type of home ( SEC Classification)
Psychographics
• Lifestyle – Rural, Urban & “Rurban”
• Personality
Behavioral
• Occasions
• Benefits sought
• Loyalty & usage status / rate
Demographic – SEC Classification
 MRUC and IRS
 Three variables – Education of chief wage earner – durable
ownership- type of house
Multi – Attribute Segmentation
Thompson Rural Market Index
Mica Rural Market Ratings
1. Developed by HTA
1. 42 socio – economic indicators
for ranking districts
2. 26 variables
3. Demographics,agriculture,
electrification and banking
facilities
4. Weights are given to variables
5. Data from 383 districts collected
6. Classification into A, B, C, D and E
markets
2. Linear combination of six
variables for measuring market
potential of districts
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Classification into A, B , C , D & E
markets
Cont’d
 Rural market ratings by RK Swamy BBDO
 Lincompass by Linterland ( Lintas IMAG)
Effective Market Targeting
 Segment attractiveness must match company objectives and
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resources
Undifferentiated marketing- Coca Cola
Differentiated marketing – Tractor Marketing
Single segment concentration
Deciding the appropriate coverage strategy
Coca Cola – “ An arms length from desire”
Positioning
 A distinctive place in the mind of the consumer
 Identifying the unique features of the product/ service
 Differences with respect to competition
 Selecting differences having a greater competitive advantage
 Communicating the best advantage to the consumer
Issues in Positioning
 Attractiveness-Distinctiveness-Pre-emptive -Affordability -
Communicability
 Under positioning – over positioning – confused positioning
Close of Session
Thank You