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Chapter: Business Science : Rural Marketing : Product Distribution


Evaluation and Selection of Segments , Targeting –Coverage of Segments



Evaluation and Selection of Segments


Overall Attractiveness –One should not be impressed by size alone. This is because in rural, the size of the market may be big but the purchasing power of rural consumers is limited. Population engaged in non-farming activities offers higher per capita prosperity. Also, this segment is more exposed to products and accepts newer products and services more readily.


Company Objectives and Resource Competencies –If a company‘s obj achieve long-term sustainable sales volume by expanding its consumer base, then it has to go rural instead of expecting consumers to come to urban markets to purchase products and services. This is demonstrated by companies like HUL, and Colgate Palmolive, which are reaching rural homes with their products. Smart marketers in rural like HUL initiated Project Shakti pilots have been transformed into mega rural marketing models.


Targeting –Coverage of Segments


Undifferentiated Marketing –Mass distribution and mass advertising. eg. Many toilet soap users prefer medicinal value, cosmetic strength, economy and the feeling of Freshness in their toilet soap. Medimix offers all these features and also claims that it is a beauty care Ayurvedic family soap. Coca Cola targets both urban and rural market with the same drink.


Differentiated Marketing –Investigates and identifies differences between segments and tries to match the market offer to the desires and expectations of each segment. Eg. Companies developed 25-30 HP tractors for small or marginal farmers and 50 HP tractors for large farmers.


Single segment concentration –Due to the small number of consumers in each segment, targeting only one segment would spread marketing efforts thinly over a vast area. With Brands  like  Lifebuoy  Active,  Lifebuoy  Gold,  Lux,  Breeze  and  Liril,  HUL  targets different consumers segments in the rural market. Choosing a coverage strategy


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Business Science : Rural Marketing : Product Distribution : Targeting |

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