Consumer behavior in context of rural market

Consumer Behavior in Context of Rural Market

“The heart of India still lies in the villages……..”

Why go Rural?

Why go Rural?

▪ Urban Push Factor– Saturation Stage– Fierce Competition

▪ Rural pull factor– Rising Affordability– Growing Acceptance– Improving Accessibility– Success Stories of Corporations

Size of Rural Markets

▪ FMCG - Rs.65000 crore

▪ Agricultural – inputs - Rs.45000 crore

▪ Durables (long life goods) - Rs.5000 crore

▪ Automobiles (2 & 4 Wheelers) - Rs.8000 crore

▪ Clothes, footwear etc. - Rs.35000 crore

▪ Construction material - Rs.15000 crore

Total - Rs.173000 croreSource: CII Report (2008)

What is Rural Marketing?

Rural Marketing?

▪ It is a process involving activities such as assessing, stimulating and converting the purchasing power to prospects

▪ It is a process with two objectives– Customer satisfaction and enhancement of

standards of living– Reaching Organisation Goals

▪ It involves application of strategies and tools based on understanding of the consumer

▪ It involves design of products and related components of the marketing mix

Why Consumer Behaviour?

Why?

Doing business without Knowing your Consumer is like winking at a pretty girl in

dark.

You only know what you are doing but not the pretty girl.

What are the chances that she will respond ?????

What is Consumer Behaviour?

Consumer Behaviour

(Factors influencing Consumer Behaviour)

▪ How do the marketing and environmental factors, along with his personal characteristics, influence the consumer’s thinking and his decision making process?

(Consumer Decision-Making Process)

▪ What stimulates a consumer to look for product or services?

▪ How does the consumer know about products and services that can fulfil his needs?

▪ How does he consume or use the product or services? What may be his feelings and reaction?

(Buyer Behaviour)

▪ How does the buyer take decision? How does he buy? Where, when and what does he buy?

Factors Influencing Consumer Behavior

Personal

Age and life cycle stage Occupation Economic

Situation Lifestyle Personality and self-concept

SocialReference group Family Roles and status

Environmental FactorTechnological Factors Economic factor Political Factor

CulturalCulture Subculture Social class

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of AlternativesEvaluation

of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social, Individual and Psychological

Factors affect

all steps

Cultural, Social, Individual and Psychological

Factors affect

all steps

Buyer Behaviour

▪ Other people often influence a consumers purchase decision. The marketer needs to know which people are involved in the buying decision and what role each person plays, so that marketing strategies can also be aimed at these people. (Kotler et al, 1994).

Purchase

Decision

Initiator

Influencer

Decider

Buyer

User

Stimuli (marketer dominated, other)

External search

Memory

Internal search

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Need recognition

Alternative evaluation

Purchase

Outcomes

Dissatisfaction Satisfaction

Individual differences• resources• motivation & involvement• knowledge• attitudes• personality, values, lifestyle

Influences• culture• social class• family• situation

Complete Model of Consumer Behavior

Different Rural Marketing

Strategies in India

Competitive Strategy

Supplier

Substitute products

Product strategy

Escort was the first organization to position its motor cycle “Rajdoot” as one that could cope with the rugged terrain of rural India “Jandaar Sawari Shandar Sawari” which was successful in the market.

Understanding of valued product

Value consciousness is big driver for the rural market, consumers are extremely aware of equation of price, quality and image

Eat healthy think better

Swast khao tan man jagao

Pricing strategy

Paanch strategy.

Rs 2 strategy

Communication strategy

Communication in regional languages or Using Regional Motivator

Outdoor Media options

Shampoo Demonstration

Dalda Vanaspathi Demonstration

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Thank You!