Unit 3

Product Management in Rural Marketing

Product Decisions
Product is at the heart of a marketing programme around which the other components of the marketing
mix are designed. Many companies treat the rural markets as the dumping ground for their lower end
products that are designed for the urban market. The rural market is not one homogeneous structure. A
firm has to segment the market and decide the specific customer groups that it wants to focus on. At the
top end of the rural market, we have customers with high disposable income such as the big farmers,
trading community and the government officials. The proportion of this segment varies from state to
state.
Product is one of the key elements of the marketing mix and occupies a central position in marketing
strategy decisions. Product decisions have to be adapted to the socio economic and usage pattern profile
of a given market before a decision to launch the product in a specific market is made. Rural markets
with their purchase patterns and buyer aspirations, as well as differential paying capacities present a
unique market scenario.

Product Mix:
Product is a powerful determinant of firm’s success. The products must be suitable to rural customers in
all significant aspects. The company must produce product according to the present and the expected
state of rural buyers. Product features (size, shape, colour, weight, etc.), qualities, brand name,
packaging, labelling, services, and other relevant aspect must be fit with needs, wants and capacity of
buyers. Product must undergo necessary changes and improvements to sustain its suitability over time.
Note that effectiveness of other decisions like pricing, promotion and place also depends on the product.

Product Strategies for Rural Market – Indian Perspective

A prime need for any firm to emerge as a strong player in the rural market is by carefully identifying
gaps in the rural market and crafting the right product offering for consumers. Chalking out a product
strategy for rural market differs in many aspects when compared to urban counter parts. Needs and
demand of rural consumer might be contrasting to that of urban consumer and therefore its necessary to
hit the right chord when entering the rural market. The prime objective is to design products to suit rural
requirements.

Conventional wisdom on rural marketing states that the needs of the rural consumers are similar to those
of the urban consumers. Hence, the products made to urban specifications should suit the requirements of
the rural consumers. However, this is not true in many cases, as there is a market difference between
rural and urban environments. For instance, Kerosene or LPG gas stoves, where the flame can be
controlled, are used for cooking in urban areas, while an open fire or ‘Chulha’ is used in rural areas.
Pressure cookers with handles on one side suit the urban consumers, but not the rural consumers for use
on an open fire or a ‘chulha’. Perhaps, a wide-bodied cooker within handles on opposite sides may suit
rural requirements. Therefore, while designing and developing products, the requirements of the rural
consumers are to be considered and rural-specific products developed.
During the late eighties, shampoo sales boomed when it was introduced in sachet pack, because it suited
the consumers in low income groups. Hindustan Motors (HM) launched a utility vehicle the RTV (rural
transport vehicle), aimed at rural market. Hence, product development for rural consumers is necessary.

Though marketers are still trying and experimenting ways to successfully tap the rural arena, below are
few product strategies which have been widely adopted and have proved themselves to work in the rural
landscape:

Small unit packing: This method has been tested by products life shampoos, pickles, biscuits, Vicks
cough drops in single tablets, tooth paste, etc. Small packings stand a good chance of acceptance in rural
markets. The advantage is that the price is low and the rural consumer can easily afford it.

Another example is the Red Label tea Rs. 3.00 pack which has more sales as compared to the large pack.
This is because it is very affordable for the lower income group with the deepest market reach making
easy access to the end user satisfying him.

The small unit packings will definitely attract a large number of rural consumers.

New product designs: Keeping in view the rural life style the manufacturer and the marketing men can
think in terms of new product designs.

For e.g. PVC shoes and chappals can be considered sited ideally for rural consumers due to the adverse
working conditions. The price of P.V.C. items is also low and affordable.

Sturdy products: Sturdiness of a product is an important factor for rural consumers. The experience of
torch light dry battery cell manufacturers support this because the rural consumers preferred dry battery
cells which are heavier than the lighter ones. For them, heavier weight meant that it has more over and
durability. Sturdiness of a product either or appearance is an important for the rural consumers. 

Value Engineering: This approach is used to develop cheaper products by substituting certain costly raw
materials. Britannia Industries Limited deployed this technique to develop a cheaper Glucose biscuit for
the rural market. The new product "Tiger" was introduced in the small towns and rural markets. The
company withdrew the previous brands such as Circus and Glucose-D meant for the lower segments and
introduced a new brand "Tiger". It was launched at Rs.3.50 per pack. This product did exceptionally well
in the rural markets and could reach the Rs. 100 crore market within a year. Asian Paints, the largest
paint-manufacturing firm in the domestic market category, realized the potential of a cheaper distemper
for rural markets. It understood that in vast majority of rural areas, people go for white washing at least
once a year primarily as a ritual preceding the major festivals of the region. With low disposable
incomes, they have to settle for the cheaper modes of white washing that are not of decent quality. This
prompted Asian Paints to introduce “Utsav” range of low priced coloured distempers. This low priced
brand got a very enthusiastic response from the rural market.

Example: Nirma that offered a value for money detergent powder at the lower end of the price quality
spectrum could increase its penetration into rural households and today it is Rs. 1500 crore brand. Before
Nirma, the lower end of the market was dominated by several unorganized players
Utility oriented products: The rural consumers are more concerned with utility of the product and its
appearance Philips India Ltd. Developed and introduced a low cost medium wave receiver named
BAHADUR during the early seventies. Initially the sales were good but declined subsequently. On
consumer research, it was found that the rural consumer bought radios not only for information and news
but also for entertainment.

Brand name: For identification, the rural consumers do give their own brand name on the name of an
item. The fertilizers companies normally use a logo on the fertilizer bags though fertilizers have to be
sold only on generic names. A brand name or a logo is very important for a rural consumer for it can be
easily remembered.

Many times rural consumers ask for ‘peeli tikki’ (Yellow Bar) in case of conventional and detergent
washing soap. Nirma made a ‘peeli tikki’ (Yellow Bar) specially for those peeli tikki users who might
have experienced better cleanliness with the yellow colored bar as compared to the blue one although the
actual difference is only of the color.

Rural Marketing Strategies in India: Product

Rural Marketing Strategy # 1. Product:

In simple terms, a product is anything that satisfies human want (customers) and includes product
quality, features, benefits, design, style, colour, brand, services, and warranties. Product is something like
the heart in the human body. Product is the most important element of marketing-mix.
The product strategies used by companies in rural markets are as follows:
Product Strategy # (a) Sturdy Products:
Most of the rural consumers believe that heavier the item, higher the power and durability. Examples- (1)
Bullet motor cycle continues to be popular in villages due its ruggedness. Royal Infield sells about 65 per
cent of two wheelers in semi-urban and rural areas. (2) Ambassador car continues to be popular in rural
areas due to sturdiness, roomier rear seat and luggage space.
Product Strategy # (b) Designing Products:
The companies can come out with new products or promote existing products to suit field conditions in
rural areas. Examples- (1) LG Electronics came out with a unique product for rural market. It launched
‘Sampoorna’, India’s first TV with a Devanagari script on screen display. The word Sampoorna meaning
‘Wholesome’ cuts across all linguistic barrier in our country. It is affordable and aimed at semi-urban and
rural areas. It can withstand power fluctuations and has sold over one lakh 20″ TV in towns with a
population of over 10,000. (2) Godrej has introduced a refrigerator Chotukool for rural areas. (3) Chota
coke in 200 ml packing priced at Rs.5/- has increased the sale of coca cola in rural market.
Product Strategy # (c) Small unit packing have been used for many consumer products. Examples- (1)
Tiger brand of biscuit is available at rupee one for a packet of four biscuits. (2) Ponds has gained market
share over the past few years by focusing on rural market and it has introduced 20 gm talcum power. (3)
Cavin Kare studied rural buyer behaviour and introduced Chik shampoo in small sachet of 4 ml at low
price of 50 paise and (4) Rasna is now available in Sachet pack priced at Rs.1 each and one sachet will
make two glasses of soft drink. The product is available in a variety of flavours such as mango, lemon,
etc.
Product Strategy # (d) Utility Products:
The rural people are concerned with the utility of the items rather than appearance/show. Examples- (a)
Philips has introduced Free Power Radio priced at Rs.995/- for the first time in India. The radio requires
no external batteries or electricity for operation. A one-minute winding of the lever runs the radio for
about 30 minutes, (b) HMT watches are popular for utility value.
Product Strategy # (e) Branding:
Brand is a name, word, symbol, design or a picture or a combination of them used to identify the product
and distinguish it from that of the competitions. A brand name not only represents the product but also
conveys the quality of the product.
Examples:
(1) Tata Steel has branded its galvanised corrugated sheets as Tata Shakthi, a sign of power. Similarly the
galvanised corrugated sheet produced by Ispat Industries has been named as Ispat Kavach .The brand
name conveys strength, durability and toughness.
(2) Some of the brands that have created a lasting impact on rural consumers are Billy wali cell
(Eveready batteries- battery with cat as symbol), Lal saboon (Lifebuoy). Ladkawala paint (Cattu-Asiant
paints Mascot), Nirma girl (Nirma detergent) Rishi (Dabur Chawanaprash), Parle baby (Parle biscuits)
and Coconut tree (Parachute), Amul (From Sanskrit word ‘Amoolya’ Meaning Priceless). Peedhari Balm
(Zandu Balm), Desh Ka Namak (Tata Salt).

The different brand elements that the rural marketers should pay attention to are: Brand Name,
Logo/Symbol, Brand Character, Slogan/one liner, Jingle and Packaging.

Brand name is one of the most important component of the brand. All the investments that are made to
enhance awareness and developing the right associations get linked to this name, which finally acts as an
anchor. Therefore selection of the right name assumes importance, given the fact there is a high level of
diversity amongst the rural pockets of different regions.

New Product Development

1. Idea Generation
The inception of every new product starts with an idea. And to generate the ideas, companies can focus
on customer demands and needs. Alternatively, they can also focus on analysing the choices of their
competitors. Understanding why the products of the competitors are selling well can increase the odds of
success for any new products that a company launches. Lastly, some companies turn to creative minds in
the upper management for ideas. The most famous example of that would be the late Steve Jobs of
Apple. Steve Jobs was famous for steering his company through new product developments with
incredible success.
 
2. Idea Screening
Not every idea is suitable to become a product. For that reason, companies have to screen the ideas.
Companies can label an idea as promising and act on it, marginal and try to improve it, or simply poor
and reject it. It is also very important for companies to avoid any bias related to the source of the idea. So
even if someone like Steve Jobs pitches an idea, the company should still be very careful with it.
 
3. Product Development Process
During the third stage of the process, the product idea grows into multiple concepts. Companies will
repeat the screening process to choose the best of them and pit them against each other. Most companies
will introduce their concepts to focus groups and analyse their reactions. The products that do the best in
front of the focus groups or test consumers go into development.
 
4. Marketing Strategy
Once a company decides on the product, they will have to spend time developing a marketing strategy for
it. Experts will evaluate the size of the market, demand for the product, and revenue estimates. The
marketing team will get a budget for their efforts and they can select distribution channels.
 
5. Business Model
The development of a business model works very similarly to the development of a marketing strategy.
The experts in the company will estimate the costs and profits and manage the potential of the product.
Also, they will estimate the economic feasibility of the new product.
 
6. Manufacture
At this stage, the production finally begins. The company will make multiple prototypes and choose on
which designs get to go to the next stage. Also, the company will, once again, perform a cost analysis to
see if it matches the estimates. And if the costs go above the higher-end estimates, the company might
abandon the project.
 
7. Branding
Once the company finally has a physical product in their hands, the marketing team can get to work. For
starters, they can develop the brand name, packaging, and the marketing message behind the product.
They will also determine the price of the product.
8. Product Launch
The final phase of the product development process is the commercialisation phase. The product is
launched, and it is followed by a developed marketing strategy in order to maximise its earning potential.

Packaging Decision

Packaging today is being used as an important marketing tool in addition to its role of protecting the main
product during shipment and transportation. Its effective role in attracting the customers' attention at the
point of purchase has led to its recognition as a "silent salesman". In rural markets a brand is most often
identified on the basis of the packaging of the brand.
Marketers have observed retailers cutting larger toilet soaps and detergent cakes into two pieces and
selling them. It has showed them the utility of small SKUs (Stock Keeping Units).

Packaging in reusable containers: The rural customer is very price sensitive and feels rewarded when
the package can be put to some other use after the consumption of the main product. PET containers are
being increasingly used as value added modes of packaging. However, polypacks are used to drive costs
to the lowest ebb.

Packaging Colour and Design: Package becomes a veritable identification tool and helps in brand
selection and reinforcement process for rural markets where mass media reinforcement relatively of a
lower order as compared to urban markets. Bright colours, bold labelling and recognizable logo, specially
those that the consumers can readily identify with are specially useful. The evocative colours of Brooke
Bond Red Label tea, Nyle Shampoo, Colgate's red & white recognizable tooth paste, Lifebuoy's familiar
package and Brittania's Tiger biscuit packs are the prominent examples which generated brand
identification and recall partly on the basis of package colour and logo designs. Similarly, depiction of
recognizable logos on the package are positive aids in brand recognition and recall. Successful examples
are the Eveready Cat-o-nine lives, Gemini Tea with elephant as the logo, Tortoise mosquito coil etc.
These widely understood symbols help the rural customers in making brand associations and generating
recall.

Brand Management in Rural Marketing

Rural branding has much in common with place branding. Place branding is used as an umbrella concept
which focuses not only on regions, but can include whole nations, cross-border regions, cities, rural areas
and so on. Rural branding, as the term already implies, addresses specific rural places and therefore
focuses on less populated areas with specific demographic, social and economic developments. While
place branding of cities and regions has been commonplace for several decades, the branding of rural
areas and communities is a much more recent phenomenon. It is assumed that rural branding has
distinctive particularities and features, and that rural branding can be considered a special case of place
branding. Furthermore, the article examines the organizational and collaborative contexts of rural
branding. In this respect, it is proposed that small rural areas with denser social relationships are obliged
to plan, manage and perform branding differently than more urban areas in order to be successful and to
be accepted by local rural people and stakeholders.

Branding plays an important role in the marketing of any products or services, which is not an exception
to the rural products. lt helps in identifying the products among competitors which builds a connection
with its consumers. Any best business would seem dull without good branding. Special efforts should be
made on branding of rural products as to ensure their sustained sales and improving the returns for the
producers as well as marketers. For branding purpose, one may not only use the quality attributes and
positive externalities of the products (such as environment friendly, healthy etc.) as the drivers, but also
capitalise on historical and cultural importance of the place of their production using Geographical
lndication (Gl) tags. For example, Darjeeling tea was the first item to obtain a Gl tag in the country way
back 2004. As of now, the highest numbers of Gl tags were bagged by fruit crops followed by vegetables.
Cultural significance could also be leveraged in promoting rural products such as Bihar Madhubani
paintings and crafts.

Branding strategies in rural place

(a) Rural Product Development

The rural market is a fast growing one and has a huge population with a great level of disposable income.
To encash this, products have to be specifically developed to meet the needs of rural markets.
Sometimes, existing products might have to be modified to suit these markets too accordingly. Rural
product development has the strong edifice on a great deal of research like feasibility studies, rural
aspiration, rural profiling and so on. This paves way for a great deal of infrastructure and expertise in this
area.

(b) Rural market research

Rural markets behave most differently from urban markets. While many marketers have tried to market
their products in rural areas, just a handful of the same only has succeeded. A strong insight into rural
consumer behaviour and sensitivity to their values and beliefs is essential; to upgrade the rural market
rural market research encompasses not just gathering data but analyzing them and linking the findings to
promote products.

(c) Rural communication campaigns

Communication for rural markets calls for a different kind of outlook. There must be a strong accent on
helping the target relate to the message. The entire communications and media strategy has to devise a
system based on research findings. These have to be developed in the regional vernacular languages and
set in the local culture for easier acceptance and reach. Unlike communication campaigns in urban areas
that rely greatly on the mass media, the strategy will be of crying in the wilderness in rural areas. Besides
mass and outdoor media, rural extravaganza like temple festivals, melas and other events where the
villagers come together can be used for promotions.

(d) Rural events

In the rural contexts, one of the best ways to capture the attention of the audience is through Event-
Management. Since rural areas have limited venues for entertainment, conducting an event in rural areas
can bring a good response. A well-planned event can get the product the mileage that we want. Some of
the interesting events that can be conducted
are Road Shows, Melas, Street- Theatre, Film-Shows and so on. These make a visually strong impact and
build long

Challenges in Brand Management in India

i) Deprived markets and Deprived People in Rural Areas: A majority of rural population in the
country is under the category of Below Poverty Line (BPL) and the markets are
underdeveloped. Further, the customers are of more tradition-bond rather than brand-bond.
ii) Multi-linguistic Customer Base: lndian rural market has many languages and dialects that
create a barrier for communication.
iii) Low Literacy: As compared to urban customers, the rural customer base have lower literacy
rate which creates print media to become ineffective and irrelevant. Many times, illiterate
customers can hardly recognise the spurious brands in the local market.
iv) Difficulty in Understanding Brand as an Asset: Lack of thinking to an extent of other brands
in general leads to difficulty in understanding the importance of brand and its value. More
thought process is required to create a brand in the case of rural product marketing.
v) Maintaining the Relevancy and Consistency is Difficult: Most of the rural products are of
nature dependent. Hence, branding must be approached proactively and holistically.
Sometimes, it is difficult to address the negative responses of the customers and maintain
enough energy to deal with these responses posted in the social media.
vi) Branding is a Costlier Affair: Since branding is much costlier, it has to be created at the
aggregators or organisational level.

Brand development of rural products

i. Use of Geographic lndication (Gl) tags - the sign used on products that have a specific
geographical origin and possess origin-based qualities and reputation in the region help
largely in promoting the rural products as brand.
ii. Creating brand Ambassadors by the Government - Unlike other FMCG products, to promote
branding in agriculture, the Government should utilise the top Government Officials
(especially IAS Officers) and Ministers as Brand Ambassadors. The Gl tags, nutrients and
quality parameters may be used as their special features of the products. Further appointing
the local celebrities as brand ambassadors to promote rural products were found successful in
the state like Karnataka, wherein the brand 'Nandini' of Karnataka Milk Federation (KMF) has
received highest popularity in the state.
iii. Highlighting the Product Features - Creating the awareness about brands by highlighting the
features like organic nature, nutrition, origin (like Madhubani painting, Alfanso mango, Litchi
honey etc.), tradition etc.,
Managing Physical Distribution in Rural Marketing

Rural markets face the critical issues of distribution. The marketer has to strengthen the distribution

strategies. Distributing small and medium sized packets through poor roads, over long distances, into

deep pockets of rural India and getting the stockiest to trust the mobility is a herculean task. Both

physical distribution and channel of distribution should be decided carefully to ensure easy accessibility

of products for rural buyers. Choosing suitable mode of transportation, locating warehouses at strategic

points, sufficient insurance, maintaining adequate inventory, maintaining a sufficient number of retail

outlets at different regions, and deploying specially trained sales force are some of the critical decisions

in rural distribution.

Normally, indirect channels (particularly one or two level) are more suitable to serve scattered rural

customers. In two level channels wholesalers are located at urban and semi urban to serve urban and rural

retailers. However, not only in backward states, but also in progressive states, local producers (farmers

and others) distribute directly to customers.

For service marketing, employees of rural branches and agents can do better jobs. Banking, insurance,

investment, satellite and cable connection, cell phone, auto sales and services, etc., the market is booming

in villages of some states. Service industries are trying to penetrate the rural segments by deploying the

specially trained employees and local agents.

Surprisingly, online or cyber marketing is making its place gradually in rural areas of the progressive

states. Marketer must design and modify time to time its distribution strategies according to nature of

rural segments, may be quite differently than that of urban markets.

Concept And Nature of Distribution : The link between manufacturers and customers is the channel of
distribution. It consists of producer, consumer, and any intermediary organizations that are aligned to
provide a means of transferring ownership (title) or possession of a product from producer to consumer.
Channel Structures :
Channel structures are evolved based on the type of company products, target market segments
and competition. Three different channel structures are briefly explained here. Table –1 shows
the different systems.
System Description Benefits
Vertical marketing Comprise producer, wholesaler Achieve economies through
system (s) and retailer (s) acting as a their size, bargaining power,
unified system. and elimination of
duplicated
services and channel conflicts.
Horizontal marketing Readiness or willingness of two or Economy of effort. A channel
System more non-related companies to put may become viable and
together resources to exploit an attractive.
emerging market opportunity. Eg: Shakti groups

Channel Types
One key question in channel decisions is- whether to go for indirect or
direct marketing.
1. Direct to customers: Producer -> Customer t h r o u g h

(i) own sales force without own branch network

(ii) own sales force with own branch net work
(iii) Telemarketing
(iv) E channels

2. Indirect to customers

Because of the wide variety of channel arrangements that exist, it is difficult to generalize the
structure of channels across all industries. However, distribution channels are usually of two
types:
I. Direct Marketing Channel (or Zero level). This type of channel has no intermediaries. In
this distribution system, the goods go from the producer direct to the consumer, e.g., Eureka-
Forbes.

II. Indirect marketing Channel. This may further be classified in the following categories

1. One-Level Channel. In this type of channel there is only one intermediary between producer
and consumer. This intermediary may be a retailer or a distributor.

1 Level

Producer Retailer Consumer

If the intermediary is a distributor, this type of channel is used for specialty products like
 washing machines, refrigerators or industrial products.

Producer -----------> Distributor ----------> Consumer

 2. Two-Level Channel. The type of channel has two intermediaries, namely
wholesaler distributor and retailer.

2 Level

Producer --------> Distributor -------> Retailer --------> Consumer

3. Three – Level Channel. This type of channel has three intermediaries namely
distributor, wholesaler and retailer. This pattern is also used for convenience
products

Producer -------> Distributor ------->Wholesaler ------>Retailer ------->

Consumer

4. Four – Level Channel. This type of channel has four intermediaries namely agent,
distributor, wholesaler and retailer. This channel is somehow similar to the previous
two. This type of channel is used for consumer durable products also.

Producer ------>Agent ------>Distributor ----->Wholesaler ----->Retailer--------

>Consumer

Distinctions between direct and indirect marketing efforts

Ways to Reach Rural Customers

Segment villages before expanding: With numerous villages in India, it is impossible for an
organization to hit the rural market all at once. Ideally, coverage of villages with up to 2000
and above population could be the break-even point for a distribution set-up. By doing so the
percentage of villages covered comes to only 10%, however the percentage of all the rural
population covered will be substantial.
Use of co-operative societies: There are over 3 lacks co-operative societies operating in rural
areas for different purposes like marketing cooperatives, farmers service cooperatives and
other multi-purpose cooperatives. These cooperatives have an arrangement for centralized
procurement and distribution through their respective state level federation. Such state level
federation can be motivated to procure and distribute consumables items and low value
durable items to the members to the society for serving to the rural consumers.
Utilization of public Distributary system: The PDS in the country is fairly well organised.
The revamped PDS places more emphasis on reaching remote rural areas like the hills and
tribals. The purpose of PDS is to make available essential commodities like food grains,
sugar, kerosene, edible oils and others to the consumers at a reasonable price. The shops that
distribute these commodities are called fair price shops. These shops are run by the state civil
Supplies Corporation, co-operatives as well as private entrepreneurs. Here again there is an
arrangement for centralized procurement and distribution. The manufacturing and marketing
men should explore effective utilization of PDS.
Utilisation of multi-purpose distribution centres by petroleum/oil companies: In order to
cater to the rural areas the petroleum/oil companies have evolved a concept of multi-purpose
distribution centres in rural areas. In addition to petrol/diesel, lubricants, these outlets also
stock consumables agricultural inputs like fertilizers, pesticides and seeds. It is estimated that
there are about 450 such outlets in operation in the country. The rural consumer who has
tractors, oil-engine pump sets and mopeds frequent these outlets for their requirement. These
outlets can be profitably utilized for selling consumables and durable items also.
Distribution upto feeder markets/mandi towns: Keeping in view the hierarchy of markets
for the rural consumers, the feeder markets and mandi towns offer excellent scope for
distribution. The rural customers visit these towns at regular intervals not only for selling the
agricultural produce but also for purchasing cloth, jewellery, hardware, radios, torch cells and
other durables and consumer products. From the feeder markets and mandi towns the stockist
or wholesaler can arrange for distribution to the village shops in the interior places. This
distribution can be done by mopeds, cycles, bullock-carts, camel-backs etc. depending upon
the township.
Shandies/Haaths/Jathras/Melas: These are places where the rural consumers congregate as
a rule. While shandies/heaths are held a particular day every week, Jathras and melas are held
once or twice a year for longer durations. They are normally timed with religious festivals.
Such places attract large number of itinerant merchants. Only temporary shops come up
selling goods of all kinds. It can be beneficial for companies to organize sales of their product
at such places. Promotion can be taken, as there will be ready captive audience. For
convincing the manufacturing and marketing man with regard to the importance of these
places from rural marketing point of view a visit to such places is necessary. It is estimated
that over 5,000 fairs are held in the country and the estimated attendance is about 100 million
rural consumers. Biggest fair „Pushkar Mela‟ is estimated to attract over 10 million
people. There are 50 such big rural fairs held in various parts of country, which attract
urbanite also like „Mankanavillaku‟ in Malappara in Kerela, Kumbh Mela at Hardwar in
U.P. „Periya Kirthigai‟ at Tiruparunkunaram in Tamil Nadu.
Agricultural Input Dealers: Fertilizers should be made available to the farmers within the
range of 4-5 km from their residence, as per the essential commodities act. This is why there
are about 2 lakh fertilizer dealers in the country, both in cooperative & private sector.
Example of Varana Nagar in Maharashtra proved an eye opener in this regard where the
sugar and milk co-operatives have totally changed the life style of people. The supermarket in
Varana Nagar caters exclusively to rural consumers. Similarly a co-operative supermarket
called „Chintamani‟ in Coimbatore (T.N) arranges free transit of rural consumers to the
supermarket of their purchases.

Rural Marketing Strategy # 2. Pricing:

Price refers to exchange value of the product and includes- (a) Maximum retail price, (b)
Discounts, (c) Credit, (d) Terms of delivery and (e) Maintenance charges. Rural retailers
generally require credit and, therefore, product pricing has to be adjusted to meet their
requirements.
Pricing Strategy # (a) Low Price:
A rural customer is price-sensitive mainly because of his relatively low level of income and
unit price of a product will have an impact on sales. Pricing the product at a lower price really
attracts rural population for trying the products. Though rural incomes have grown in the past
decade, the money earned by the average rural consumer is still much lower than that of his
urban counterpart.
A large part of the income is spent on the basic necessities, leaving a smaller portion for other
consumer goods. Examples- (1) Bharath Petroleum has introduced five kg gas cylinders to
reduce initial deposit and refill cost for rural consumers. The deposit for 5 kg cylinder is
Rs.350/- against Rs.700/- for 14 kg cylinder and refill cost is Rs.90/- against Rs.250/- for 14
kg cylinders. (2) Small unit packs of shampoo, hair oil, toothpaste, biscuits and bathing soap.
Pricing Strategy # (b) No-Frills Product:
The production cost can be lowered by using less sophistication and rather concentrating on
sturdiness and utility of the product. Examples- 1. Maharaja Appliances Ltd., sells a sturdy
Bonus washing machine, without a drier for rural market at Rs.2,990/-. 2. The rural markets
operate on a price-value proposition. LC Electronics has knocked off some of the frills in the
products.
The idea is to give features that are absolutely indispensable. The rural consumer does not
require Colden Eye feature and therefore base models do not have this feature. Again not all
consumers need 200 channels and therefore they have provided 100 channels in the base
model. Everybody may not require a sound output of 350 watts and therefore they have given
an output of 200 watts in base sets. The rural consumer is value conscious. He will buy the
product that gives value for money.
Pricing Strategy # (c) Refill/Reusable Packaging:
By giving refill packaging marketers can add value to the pricing of the product. Examples-
Bourn vita available in refill pack and detergents made available in reusable packaging.
Pricing Strategy # (d) Credit Facilities:
Success or failure of crop depends upon climatic conditions. Favourable conditions give
bumper yields and unfavourable conditions result in very low yields, and, therefore, rural
income is seasonal in nature. The farmer requires credit for meeting cultivation expenses as
well as running the family between marketing of produce and the harvest of next crop.
He avails credit facilities from the village merchant for buying household necessities. The
rural retailer in turn requires credit facilities from the distributors of consumer goods. Many
companies extend credit to the village retailers to persuade them to stock the company’s
products and push it in the market.
The decision to extend credit is based on the volume of business and credit worthiness of the
retailers. The credit period varies between 15-30 days in the case of fast-moving consumer
goods.
Pricing Strategy # (e) Discounts:
Discounts are offered to motivate the retailers to sell more of the companies’ products. A
discount of about 10 per cent is given on the maximum retail price in the case of fast-moving
consumer goods. Many Companies offer attractive additional discounts to motivate the
retailer to stock the products during off-season.
Pricing Strategy # (f) Promotional Schemes:
Normally farmers purchase consumer durable items after the harvest of crops. Similarly,
Diwali, Pongal, Onam, Dassera, Id and Christmas are the festivals for buying household
articles. Special promotion schemes such as new product introduction scheme, festival offer
by way of special discounts, exchange offer i.e., taking back used consumer durables are
aggressively promoted during harvesting and festival seasons in rural areas for increasing
sales of the products.
Pricing Strategy # (g) Value Engineering:
This is an internationally used technique, which helps organisations not only lower costs but
enhance value to customer. The concept has been implemented by a few firms in tapping the
rural markets. Example- Nirma detergent powder, over a period of ten years has become the
largest selling brand in rural India. The success of Nirma is due to affordable price, medium
quality, availability at village shops and use of rural specific mass media.
Rural Marketing Strategy # 3. Place (Distribution):
Place refers to distribution of the product and includes distribution channel, area coverage,
channel remuneration, warehousing, inventories, banking and transportation.
Major obstacles to reach the rural customers are as follows:
(a) The distribution chain requires a large number of intermediaries and this increases the cost
of distribution
(b) Non-availability of dealers
(c) Poor viability of retail outlets due to low business volume
(d) Inadequate banking facilities.
(e) Interior villages get flooded during monsoon and only about 70 per cent of the markets are
connected by road and
(f) Transport and communication facilities are poor in villages.
Penetrating Interior Markets:
Many companies are making use of innovative as well as traditional channels to reach
interior markets and a few examples are given below:
Channel # (a) Satellite Distribution:
In this system, the company appoints stockists in important towns. These stockists are
responsible for placing orders with the company, receiving the stocks, sorting of stocks and
supply the goods in small lots to the retailers and merchants situated in rural areas and in and
around the towns.
The stockist is given 15-30 days’ credit by the company. Over a period of time, along with
increase in business, some of the good retailers will be elevated as stockists. Therefore, many
retailers hover around a particular stockist. The advantage of this system is it enables the
organisation to penetrate interior markets. Example- Companies like Nestle, Marico,
Eveready batteries have appointed stockists to service the village merchants and the
merchants are met at fortnightly/monthly intervals through van operations.
Channel # (b) The Hub and Spokes Method:
In the rural areas, Coca-cola has developed Hub and Spokes method of distribution. In this
method, the manufacturer in the area appoints main distributors (Hub) in important markets.
These distributors, in turn, appoint sub-distributors (spokes) to handle smaller markets within
the territory. The sub-distributor supplies to the retailers and these retailers finally deliver it
to consumers.
Channel # (c) Syndicate Distribution:
Companies selling non-competitive goods can join together and distribute the products
through a common distribution channel. Example- P&G has made use of the distribution
channel of Marico for selling their product.
ADVERTISEMENTS:

Channel # (d) Project Shakti:

HLL has come out with a new distribution model with main objective to develop income-
creating capabilities of underprivileged rural women by providing a sustainable enterprise
opportunity and to improve rural living standards through health and hygiene awareness.
Typically, a woman from the Self Help Group is selected as a Shakti entrepreneur and
receives stocks Lifebuoy, Wheel, Pepsodent, Annapurna salt, Clinic Plus, Ponds, LUX,
Nihar, 3 Roses tea, etc. at her doorstep from the HLL rural distributor. She sells directly to
consumers as well as to small merchants in the village.
Each Shakti entrepreneur services 6-10 villages in the population range of 1000-2000 people.
With training and hand-holding by the company for the first three months, she begins her
journey selling the products door-to-door. Normally the entrepreneur has a turnover of
Rs.10,000 to Rs.25,000 per month and earns a profit of Rs.800 to Rs.2,000 a month.
Channel # (e) Melas:
Our country is a land of melas and we have religious (Kumbh Mela), cattle and commodity
fairs which are held for a day or even a week. Many companies have come out with creative
ideas for participating in such melas. The company can put up a stall and decorate the same
with posters, cut-outs and banners. A trained salesperson answers queries about products and
services.
ADVERTISEMENTS:

Lucky draws, surprise gifts and scratch cards can be organised to attract the people to the stall
and sell the products. Examples- (a) Kisan Mela in Ludhiana is an annual feature and
companies like Maruti have been able to book orders for cars by participating in this Mela,
(b) Display and sale of consumer goods.
Channel # (f) The Haats:
By participating in haats and melas, the company can not only promote and sell the products
but also understand the shared values, beliefs and perceptions of rural customers that
influence his buying behaviour. Weekly markets i.e., Haats are held regularly in all rural
areas. The sellers arrive in the morning in the haat and remain till late in the evening. Next
day, they move to another haat.
The reason being that in villages the wages are paid on weekly basis and haat is conducted on
the day when the villagers get their wages. For the marketer, the haat can be an ideal platform
for advertising and selling of goods. Example- Tata salt, Parachute oil are promoted through
Haats. The wholesalers buy from urban markets and sells to retailers who sell it in Haats.
Channel # (g) Mobile Traders:
Known as Pheriwaalas, they are able to service interior markets, which conventional
distribution channels do not touch. They are also able to reach rural households especially
women who do not leave their homes. They move from house to house on bicycle or on foot,
selling a variety of goods like bangles, artificial jewellery, perfumes, toothpowder, face
cream, vessels, clothes etc. These traders have been calling on the same home for years and
their association with rural customers is a good example for relationship marketing.
Physical Distribution:
Considering the constraints in physical distribution of stocks in rural areas, many companies
have come out with innovative solutions.
(a) Physical Distribution of Stocks through Delivery Vans:
The delivery van takes the product to the retail shops in villages. The sales person travels in
the van and delivers the stocks to the retailer and collects the money, too.
Examples:
(1) Bharat Petroleum has introduced Rural Marketing vehicle (RMV) way back in 7 999 in
Punjab. The vehicle moves from village to village and fills LPC Cylinders on the spot to rural
customers.
(2) Sygenta Distributors use hired vehicles for delivery of pesticides as well for collection of
outstandings in rural areas.
(3) Eveready batteries has appointed van operator in each district, who supplies the product to
retail stockists. These stockists supply the product to all retailers and merchants.
(b) Syndicate Van Distribution:
There are cases wherein companies do not have resources for running exclusive vans for
delivery of goods to the rural market. In this case, the firms/ distributors selling non-
competitive consumer goods come together and operate delivery van to service the rural
retailers.
(c) Bullock Carts or Camels:
Bullock carts or camels are used for covering remote villages with no motorable road. Boats
are also used to cover villages that are not connected by road. Example- Villages in certain
parts of Kerala, A.P., and West Bengal.
Rural Retailing:
A few corporates have entered the field of organised retailing in rural markets and
examples are given below:
(1) Choupal Sagar promoted by ITC is the first organised retail outlet in the rural market. The
rural mall serves as a shopping and information centre. Spread over an area of six acres at
Sehore in MP, the mall sells everything – sarees, footwear, groceries, cosmetics, television,
agricultural inputs, motorcycles, scooters and even tractors.
Banking, ATM, restaurant, Post Office, fuel pump, health care centre are the other facilities
offered by Choupal Sagar. The farmers can log on to Internet and find out modern methods of
cultivation of crops and prices of agricultural commodities. The company has 20 Chaupal
Sagars and has plans to increase the same in coming years.
(2) Haryali Kisan Bazaar:
Each complex spread over two acres caters to farmers’ requirements such as agricultural
inputs, sprayers, animal feed, farm implements, irrigation equipments. Further an experienced
agricultural graduate provides free advice to farmers on modern cultivation practices through
personal interaction or through mobile.
(3) Godrej Agrovet:
Godrej Agrovet has launched rural retail outlets known as Godrej Aadhaar in Maharashtra.
The stores offer agricultural inputs, consumer goods, banking, postal and pharmacy services.
Development of Retailers in Rural Markets:
One of the important challenges faced by the marketer is the development of a chain of
retailers in rural markets. The problems are non-availability of retailers and poor viability of
retail outlets due to low business volumes. The marketer could consider some of the existing
retail outlets in rural areas.
1. Co-Operative Societies:
There are about four lakh cooperative societies operating in rural areas. Many of these
societies distribute consumer goods and low-value consumer durables.
2. Public Distribution System:
Essential commodities such as sugar, kerosene, edible oils are made available to the
consumers at reasonable prices through fair-price shops. Such shops are run by State Civil
Supplies Department, co-operatives or by private parties. There are about 3.80 lakh public
distribution shops and marketers could explore the possibility of selling goods.
3. Agricultural Input Dealers:
There are about two lakh dealers selling fertilisers. Since the demand for fertilisers, seeds and
pesticides is highly seasonal, many of these dealers deal in consumer goods also. The
marketers could approach these dealers and find out the possibility of selling consumer
products in rural areas.
4. Feeder Markets/Mandis:
The rural consumers visit nearby towns for selling agricultural produce and buying consumer
durables. 90 per cent of the durables purchased by rural people are from class 11 & 111
towns as shown in Table 24.7 and stockists could be appointed in such feeder towns to
service the villagers.

5. Post Offices and Bank Branches:

There are 1,40,000 post offices and 38,000 bank branches and marketers could consider using
their services for promoting insurance policies and other financial services.
Rural Marketing Strategy # 4. Promotion:
Though the rural markets offer big attractions to the marketers, one of the most important
questions frequently asked is how do we reach the large rural population through different
media and methods?
Considering the dynamics of rural market, uniqueness of rural customer and the distribution
of infrastructure, the marketer has to formulate an appropriate promotional strategy to reach
the rural population. The promotion media and methods could be broadly classified into
Formal media and Informal/Rural Specific media.
Promotion Media # (A) Formal Media:
Reach of formal media is low in rural households (Print- 14 per cent, TV- 36 per cent,
Cinema- 16 per cent, and Radio- 18 per cent) and, therefore, the marketer has to consider the
following-
(1) Local Language Newspapers and Magazines:
Local language newspapers and magazines are becoming popular among educated families in
rural areas. Examples- Newspapers- Eenadu (A.P.), Dina Thanthi (Tamil Nadu), Dainik
Bhaskar (North), Anand Bazaar Patrica (West Bengal) and Loksatta (Maharashtra) are very
popular in rural areas.
(2) Television:
Television has made a great impact and large audience has been exposed to this medium.
Regional TV channels like Alpha Punjabi, Alpha Marathi, Surya, Eenadu and Sun have
become very populat in rural areas. Example- Dabur promotes Vatika brand of shampoo
through local TV channels such as Alpha Marathi, Surya TV
(3) Radio:
Radio reaches large population in rural areas at a relatively low cost. The farmers have a
habit of listening to Regional news/Agricultural news in the morning and late evening. The
advertisement has to be released during this time to get maximum coverage in rural areas.
(4) Film:
Viewing habit is high in certain states like Tamil Nadu, Karnataka and Andhra Pradesh.
Village theatres do roaring business during festivals by having four shows per day.
Examples- (a) Advertisement films on Lifebuoy soap and Colgate toothpaste are regularly
shown in rural cinema theatres, (b) A telegu film “Nee Premakai” has been shown in rural
theatres to ensure top of the mind salience of Bata in the minds of people
(5) Direct-Mail Advertising:
Direct-mail Advertising is a way of passing on information relating to goods or services for
sale, directly to potential customers through the medium of post. It is a medium employed by
the advertiser to bring in a personal touch. In cities, lot of junk mail is received by all of us
and very often such mails are thrown into the dustbin whereas a villager gets very few letters
and he is receptive to such mails.
The mailing list has to be updated on a yearly basis. The message should be in local language
and should contain pictures and local phases. Example- Mails in Regional Languages for
promoting Insurance, Seeds and Pesticides.
(6) Wall Painting:
Wall painting is an effective and economical medium for communication in rural areas, since
it stays there for a long time depending upon the weather conditions. The company need not
have to pay any rent for the same in rural areas. The matter should be in the form of pictures,
slogans for catching the attention of people.
The local distributor could be involved in the selection of places for wall painting. Example-
Companies marketing TV, fans, branded coffee/tea, toothpaste, pesticides, fertilisers, etc. use
wall painting as a promotional medium in rural areas.
Promotion Media # (B) Informal/Rural Specific Media:
These media with effective reach and personalised communication will help in realising the
promotional objectives.
(1) Farm-to-Farm/House-to-House:
Rural people prefer face-to-face communication and farm visits facilitate two-way
communication. The salesperson meets the villager and highlights product benefits and
persuades him to use the product. Very often, the local dealer makes follow-up visits for
securing orders. Examples- (a) Many LIC agents and Bank managers have tried this approach
with success in rich rural areas, (b) Farm-to-Farm has been found to be effective for
promoting seeds, pesticides, and fertilizers.
(2) Group Meeting of Rural Customers:
Group meeting of rural customers as well as prospects is an important part of interpersonal
media. The company is able to pass on the message regarding benefits of the products to a
large number of consumers through such meetings.
Early morning and late evening hours are ideal for conducting meetings. Opinion leaders
could be requested to share their experiences with the participants. Question-and- answer
session will make the programme very interactive.
Examples- (a) Banks, agricultural input and machinery companies conduct group meetings of
key customers, (b) MRF Tyres conduct Tractor Owners’ Meet in villages to discuss repairs
and maintenance of tractors, (c) Croup meetings could be organised in prosperous villages for
promoting consumer durables, two wheelers and LPG cylinders.
(3) Opinion Leader:
Opinion leader is a person who is considered to be knowledgeable and is consulted by others
and his advice is normally followed. Examples- (a) Paint companies such as Asian Paints,
Goodlass Nerolac conduct painters’ meet. They invite the painters from 2-3 villages to a
common place, detail their products and give small demonstrations. They distribute free
samples and give small gifts such as T-shirts, wallets and key chains, (b) Mahindra Tractors
use bankers as opinion leaders.
(4) Rural entertainment programmes:
Rural entertainment programmes Fold dances, dramas, puppetry shows, magic shows,
Tamasha and Keertana are some of the well-appreciated forms of entertainment available to
the rural people. Many companies are promoting their products through such programmes.
Examples-
(a) Brook Bond/Lipton India Limited have started an All-India campaign to promote its
Kadak Chhap tea through magic shows and skits. A local magician delivers the message
under the garb of a skit. One of the boys plays the role of Nathoo who kills the evil guys after
he had a strong cup of Kadak Chhap. At the end of the show everybody is given a sample
pack,
(b) Marico have used folk theatre groups to promote Parachute in rural areas in West Bengal,
(c) Lavnis, the folk dance form of Maharastra is as old as 700 years. This is an important
form of entertainment in rural areas. This powerful medium has been chosen by Coca-Cola to
penetrate rural markets
(5) Audio Visual Publicity Vans (AVP Vans):
Audio Visual Publicity Vans (AVP Vans) is one of the effective tools for rural
communication. The van is a mobile promotion station having facilities for screening films
and mike publicity. Portable exhibition kit can be carried in the van and an exhibition of the
products could be put up as and when required. During day time, the van is used for mike
publicity and poster pasting.
Film shows are organised in the villages after sunset. Examples- (a) Colgate van screens a 20-
minute film on oral hygiene that explains how to use the products and offers samples to the
villagers during such programmes, (b) Cavin Care organises Audio visual unit programmes in
rural markets by showing popular films interspersed with Chik commercials to develop
awareness among villagers, (c) Mahindra hires trucks and these trucks contain tents, chairs,
loud speakers, mike sets, etc.
They also display their tractors. The trucks go from village to village showing films. The
dealers help in collecting the audience. Leaflets are distributed to villagers. The truck covers
on an average 2-3 villages in a day.
(6) Product Demonstration:
Product demonstration is based on the extension principle “seeing is believing” and is one of
the most effective methods to show the superiority of the company’s products to the
customers. Examples- (a) Sales promotion of detergents, vacuum cleaners, pressure cookers,
and Shampoos, through demonstrations, (b) Demonstrating the use of tractor/ implements for
different agricultural operations, (c) Application of Urea fertilizer in Paddy fields to show the
luxurious growth of the crop.
(7) Jeep Campaign:
Jeep Campaign is normally organised for promoting the use of fertilisers, pesticides and
seeds. The programme starts in the morning and about 4-6 trained agricultural field
assistant’s travel in a Jeep. As soon as the Jeep reaches the village, all the field assistants get
down and move in different directions in the village.
They meet the farmers, talk to them about the products, hand over the leaflets and move to
another village. Depending upon the size of the village, crops grown, number of villagers to
be contacted and the distance between villages, the group covers about 4-6 villages per day.
By organising Jeep campaign, the company is able to pass on the messages about
products/services to a large number of farmers during a short period.
(8) Life-Style Marketing:
Life-style reflects as to how a person lives and spends time and money. Life-style can be
determined by the product a person consumes, his activities (shopping, hobbies), interests
(food, recreation, fashion) and opinion (about business, society and the Government. Each
rural market segment has certain special features i.e., they share common life-style traits.
They include village sports, religious events, prominent personalities and role models.
Example- over 100 rural sports festivals are held in Punjab every year. Bullock cart races,
camel races, races of horses are some of the attractions of the rural sports festivals in Punjab.
Products like Parle and Glucon ‘D’ are promoted during sport festivals.

Sales Force Management in Rural Marketing

Sales Force Management (SFM) is a sub-system of marketing management. It is Sales

Management that translates the marketing plan into marketing performance.

Reaching out to the customer is one of the most important in the rural market and
maintaining constant touch through personal communication is the key. The strategies that
work in urban marketing are not at all suitable to a great extent in the rural market. Rural
markets are geographically dispersed and lack adequate physical and social infrastructure.
As a result, the distribution of goods and services to and from villages is extremely difficult
and costly. Thus is addition to distribution, also periodically reaching out to the rural
market is as well extremely difficult. Given the deficits in rural market infrastructure and
lack of established supply chain networks, identifying and acquiring the right channel
partners is critical. Companies seek partners that can understand their objectives and
connect with target customers in rural markets.

There are certain distinct advantages and disadvantages of the sales force management

systems as mentioned below:

i. Understanding the economic structure of an industry

ii. Identifying segments within a market

iii. Identifying a target market

iv. Identifying the best customers in place

v. Doing marketing research to develop profiles (demographic, psychographic, and

behavioral) of core customers

vi. Understanding competitors and their products

vii. Developing new products

viii. Establishing environmental scanning mechanisms to detect opportunities and threats

ix. Understanding one’s company’s strengths and weaknesses

x. Auditing customers’ experience of a brand in

xi. Developing marketing strategies for each of one’s products using the marketing mix

variables of price, product, distribution, and promotion

xii. Coordinating the sales function with other parts of the promotional mix, such as

advertising, sales promotion, public relations, and publicity

xiii. Creating a sustainable competitive advantage

xiv. Understanding where brands should be in the future, and providing an empirical basis to

write marketing plans regularly to help get there

xv. Providing input into feedback systems to help monitor and adjust the process.

The disadvantages are:

i. Difficulty in adopting the system

ii. Too much of time spent on Data Entry

iii. Losing personal touch in the process of automation

iv. Laborious process of continuous maintenance, information updating, information

cleansing and system up gradations

v. Cost involved in Sales Force Automation Systems and Maintenance

vi. Difficulty in integration with other management information systems

Major Steps in Sales Force Management:

1. Establishing Sales Force Objective:

Sales people must be given clear, feasible and attainable objectives.

2. Designing Sales Force Strategy, Structure, Size and Compensation:

(i) Sales Force Strategy:

This includes deciding the type of persons required, type of products added in product line

etc.

(ii) Structure:

Strategy influences the structure.

Possible structures are:

(a) Territorial Sales Force Structure:

A particular territory in which each sales person is assigned to sell company’s full line. Sales

area is small so selling can be done more effectively. The sales man can understand the needs

of the area and can design his strategy accordingly. This strategy is cost effective as well.

(b) Product Sales Force Structure:

It is used when the products are numerous, unrelated and complex. In this, sales force sells

along the product line. Kodak films and industrial goods are sold by separate sales force, i.e.

for industrial films technical sales force is there and a separate sales force sells commercial

armature films.

(iii) Sales Force Size:

It denotes the number of employees.

(iv) Compensation:

Proper compensation is required. Both monetary and non-monetary compensation would

complete the compensation plan.

Different methods of compensation and incentives are:

(a) Straight salary plan – Sales men are paid a fixed salary.

(b) Straight commission plan – Where only selling commission is paid on every unit sold.

(c) Salary plus commission plan – Where a fixed minimum salary is ensured and commission

is paid on every unit sold.

(d) Commission plus approved expenses – In this plan, in addition to a commission, some

approved expenses are reimbursed by the firm.

(e) Salary plus group commission plan – As the name suggests, this method advocates

payment of a fixed amount as salary. In addition the entire group is paid some commission

which is an incentive for good or efficient performance as a group.

3. Training Activities:

The activities involved in training are:

(i) Spelling out the aims of the sales training

(ii) Determining the needs of training

(iii) Identifying needs of individual salesman

(iv) Deciding about the nature and type of training required

(v) Content of training

(iv) Change in the methods of training

(vii) Developing the instructional material and training aids

(viii) Timing the training

(ix) Evaluating the effectiveness of the training

(x) Training the trainer

5. Supervising Sales People:

The senior management must supervise the sales force on a regular basis. The importance of

control cannot be undermined or given less emphasis than any other function. Supervision

helps the management in knowing what is going on. Also it helps in taking a corrective

action, if required, at an early stage.

Another important objective of supervision is control. The management can show its concern

for its people, and thereby motivate them by regular and routine supervision. But such a

system must be used in moderation, lest the employees start feeling hassled and demotivated.

6. Evaluating Sales People:

Regular evaluation of sales people helps the management in identifying people who are good

or who are bad. Those who are good and efficient must be awarded for their task. Bad ones

must be motivated and trained to improve and if after all efforts they do not improve then
punitive measures must be adopted.

Sales force management in rural marketing, Marketing Management

Sales force management: as a general rule, rural marketing involves more intensive personal
selling effort compared to urban marketing.

Traits/Qualities of Sales Person for Rural marketing

1.       Willingness to be located in the rural areas: first of all, only those who feel happy in
living and working in the villages can become goos rural salesman. It is common knowledge
that the rural areas lack modern compared with the urban areas. Because of this factor, well
qualified salesmen are often reluctant to live in the rural areas.

2.        Cultural congruence: location is just the straight point. The sales man must be well
acquinated with the cultural aspects of rural life. Since the cultural patterns of the rural
commodities differ from one another, a background that gels with the culture of the given
community is to be preferred.

3.       Attitude factors: attitude factors are of particular significance in the rural context. For
example, the rural salesman must have a great deal of patience, as their customer is a
traditional and cautions person. Preserve is another essential trait. It will not be possible for
the rural salesman to clinch the sale quality.

4.       Knowledge of the local language: rural salesman should also be conversnet with the
local language whereas his urban counter part can successfully manage with English and a
working knowledge of the local language, the rural salesman should be quite familier with
the local language.

5.       Ability to handle several product lines: often rural salesman is required to handle
several product lines. While urban salesman can generate an economic size business through
a few product lines, rural salesman are compelled to handle a large variety of products, as
they do not generate economic volume of business with a few products.

6.       Creativity: rural selling also involves greater creativity. Often, the products connected
may be very new in the rural context. The rural salesman have to make special endevours to
introduce them.    

Functions of Sales Persons engaged in Rural Marketing

1. Increase Sales: The sales person has to identify his own and customers potential, call on
more customers consisting of farmers, dealers etc. Training and motivating the distributors,
dealers etc. help improve trade sales. Organising campaigns with special emphasis on
farmers’ contacts and demonstration will be important in order to increase demand for the
product. The services of NGO’s can be used e. g. Colgate Palmolive used NGO’s to promote
its toothpaste Colgate ‘Supershakti’.

2. Improve Company’s Image: A sales person is the link between the customers and the
company. He is the company’s ambassador in the market. Transactions are based on trust in
the salesperson. It is therefore important that he creates a good impression of the company in
the eyes of the customers.

3. Develop Future Market: The salesperson will have to keep in touch with the latest
advancements in the market. He has to identify & develop distribution system and
undertaking demand generation activities are necessary for the developing the market for the
future.
4. Effective use of Resources: Salesperson should not resort to dumping of stocks in order to
achieve sales targets. He should ensure that stocking of goods is proportional to expected
sales; it will help him in collecting dues as per the credit policy of the company.
5. Self Improvement and Development: The salesman need comprehensive on the job
training in selected village markets. They need to be educated about the rural marketing
environment in addition to be trained in salesmanship, and in selling techniques
Case Study
Technology for the Sales Force:

 Dabur’s rural sales force used mobile phones to report sales.

 Phones were equiped with maps showing the demographics and
market potential of each locality, to improve rural coverage.
 Over two years, Dabur’s rural strategies saw it doubling the villages under
its coverage to 30,091 (till 2013)
 Dabur armed more than half of its urban sales force with hand-held
devices to generate data, which is then used to decipher buying patterns
and customize selling strategies.
 It has also been used to provide information to and generate feedback
from doctors on Dabur’s formulations and ayurvedic products.